"A Transportation Management System (TMS) is a subset of supply chain management concerning transportation operations..."
The coordination and management of the movement of goods from one place to another, including planning and executing transportation strategies, selecting the transportation mode and carrier, monitoring the movement of goods, and managing costs associated with transportation.
Transportation modes: Different methods of transportation available, such as trucking, air, railway, sea and the advantages, costs and limitations of each.
Logistics network design: Understanding the optimal routes and network configuration to minimize transportation time, costs, and risks.
Carrier selection: How to choose the right carrier for a particular shipment based on factors such as cost, reliability, and capacity.
Freight procurement: The process of securing transportation services at the best possible price, quality, and terms.
Transportation compliance: Understanding the regulations and restrictions that apply to the transportation of goods, including dangerous goods transportation and customs compliance.
Freight costing and pricing: The methods for calculating transportation costs and the different pricing strategies available for shippers and carriers.
Freight consolidation: Combining smaller shipments into a larger load to reduce transportation costs and improve efficiency.
Transportation planning and execution: The process of planning, scheduling and coordinating shipments to ensure they are transported safely and efficiently.
Supply chain visibility: The tools and techniques available to track shipments across the entire supply chain from origin to destination.
Capacity management: Managing the resources and capacity needed to transport goods in a timely manner meets the customer's requirements.
Inventory management: On-time delivery requires proper inventory to facilitate transportation & warehouse management.
Performance measurement: Measuring logistics performance against set goals and KPIs to identify areas of improvement and optimizing operations.
Freight and Distribution Management: This type of transportation management is crucial in the effective delivery of freight, covering various aspects, from the choice of the mode of transportation, to the management of fleet, to the warehousing, to the coordinated movement of goods to their final destination.
Carrier Management: This involves the management of all shipping and delivery partners in a company's supply chain, ensuring that carriers comply with stated policies and procedures, company standards, and federal regulations.
Route Optimization: This type of transportation management reduces the costs involved in the transportation of goods and also improves the speed and efficiency of delivery. It involves the identification of the most cost-effective and fastest route.
Transportation Planning: This management type is about devising methods of effectively moving goods from one location to another within the scheduled timeline, taking into account factors like inventory levels, demand forecasts, and budget constraints.
Shipment Tracking and Visibility: This type involves the use of real-time tracking technologies to monitor the movement of goods from origin to destination, ensuring visibility of the shipment at every stage of its transit.
Mode Selection: This focuses on choosing the most effective mode of transport based on factors such as distance, time constraints, cost, and shipment characteristics – like weight, dimensional measurements, and value.
Reverse Logistics Management: This refers to the management of return shipments from customers, optimizing the process to recover value from returned products and increase the efficiency of the entire supply chain.
Global Logistics Management: This covers transportation management involving transportation across borders, including customs clearance, regulatory compliance, and foreign currency transactions.
"...which may be part of an Enterprise Resource Planning (ERP) system."
"A TMS typically acts as an intermediary between an ERP or legacy order processing and warehouse/distribution module."
"The TMS Planning Module evaluates both inbound (procurement) and outbound (shipping) orders..."
"...providing the user with suggested routing solutions."
"The user reviews these suggestions and selects the most reasonable option..."
"...which is then passed to the transportation provider analysis module. This module determines the best mode of transportation and the most cost-effective solution."
"...an electronic load tendering and track/trace system is used to execute the shipment through the selected carrier."
"The TMS also supports freight audit and payment processes."
"Integration with ERP systems (once orders are transformed into shipments) and sometimes with Warehouse Management System (WMS) programs are also commonly linked to ERP."