A transportation management system (TMS) is a powerful tool for businesses that manage complex freight networks – whether it is for local operations or international shipping. In this article, we will explore what a TMS is, the benefits of implementing a transportation management system, and how your company can find the best system for your needs.
What is a transportation management system? The key roles
A transportation management system is a software designed to help companies manage their logistics and transportation needs effectively.
What does a transportation management system do? This software provides a comprehensive overview of a company's logistics day-to-day operations. It can be utilized to optimize product distribution, ensure timely deliveries, and track shipments – offering valuable visibility into all freight movements, whether they are by sea, land, or air. By streamlining these processes, a TMS enhances overall efficiency and improves customer satisfaction.
Why is it important to have a transportation management system?
Transportation management systems are key to supply chains, impacting every step – from planning and procurement to logistics- and lifecycle management. A good system provides clear visibility across all stages, making transportation planning and execution more efficient. This leads to better customer satisfaction, which drives more sales and helps businesses grow. In today’s fast-changing global trade environment, it is crucial to have a system that helps you navigate complex trade policies and compliance requirements smoothly.
Read more about global logistics.
What does transportation management system (TMS) mean?
A transportation management system is a software that helps companies plan, execute, and optimize their transportation of goods.
So, a transportation management system means managing shipments more efficiently and improving logistics operations overall.
What does TMS stand for in logistics?
TMS is the abbreviation for transportation management system and is often used in logistics contexts. A TMS enables companies to efficiently plan, execute, and optimize their transportation operations.
BLU4U - ALWAYS AN EYE ON YOUR CARGO
Features of a transportation management system
Below you can find a comprehensive guide to transportation management systems for logistics and freight management. Note that these are not transportation management system requirements, but great features.
Transportation management system features:
- Booking request
Allows direct bookings with various carriers through the TMS. Integrates with carrier systems via API; smaller carriers can be booked through standardized emails.
An API is an interface that allows different systems to communicate and exchange data automatically. It is used to connect systems and simplify processes, such as bookings.
- Rate Management
Centralizes management of all freight rates, allowing efficient handling of data across transport modes (sea, air, road). Provides access to historical data and additional charges to find the best rates.
- Quotations
Facilitates ad hoc requests for online freight prices and transit times from different carriers. Quotes depend on cargo type, size, pickup, and delivery destinations.
- Tracking
Offers shipment location updates through carrier tracking links or software milestones, often displayed on a dashboard.
- Documentation
Automatically generates and allows the upload of essential shipping documents for each shipment, such as invoices and packing slips.
- Communication
Provides a messaging module and interface capabilities for operational communication between shippers and carriers, with real-time chat and mobile app support.
- Notifications
Sends automated operational updates to users, suppliers, customers, and carriers, including booking confirmations and estimated time of arrival (ETA) updates.
- Dashboard
Consolidates all freight information into a single view, providing complete visibility into every shipment and user activity. (Insert link to our dashboard feature announcement)
- CO2 Measurement
Calculates and stores CO2 emissions by freight type, considering the carrier's fleet and service specialty.
- Reporting
Offers market insights and key performance indicators, available for automatic emailing or on-demand downloading.
- Statistics
Provides an overview of shipper data, including costs, savings, and transit times, with visualization options for CO2 emissions.
- Address book
Automatically stores contact information for suppliers and customers.
How does a transportation management system work?
A transportation management system connects with carrier systems to access, store, and compare detailed carrier information. As you already know, it also helps businesses optimize routes, transport modes, and track delivery progress.
The TMS works alongside other software within a broader supply chain. Management systems often integrate with enterprise resource planning (ERP) and warehouse management systems (WMS). Each of these systems has a specific role, and together they create a cohesive process for managing deliveries. You will receive a closer introduction to the systems below:
- ERP manages accounting, order management, and invoicing.
- WMS oversees warehouse operations like palletization, order fulfillment, shipping, receiving, and inventory tracking.
- TMS focuses on freight management and optimizing routes and carriers.
Read more about supply chain optimization.
Who uses TMS systems?
TMS systems are essential for businesses that frequently ship and receive goods. The pandemic accelerated the growth of digital e-commerce companies – adding to the demand from manufacturers, wholesalers, distributors, and retailers seeking faster, more efficient, and cost-effective delivery solutions.
Various sectors that can benefit from a TMS system include:
- Retail, automotive, and manufacturing
- Pharmaceutical and healthcare
- Food service and restaurants
- Logistics providers
- Aerospace, government, and defense organizations
Warehouse and transportation management system
A transport and warehouse management system (TWMS) is a software that supports eCommerce, distribution, and third-party logistics (3PL).
A TWMS helps supply chain managers with daily operations, including organizing, planning, scheduling staff, managing inventory, processing orders, picking, and shipping. It combines the functions of a traditional transportation management system and warehouse management system into one platform – eliminating the need for separate integrations. By doing this, a TWMS enhances the capabilities of traditional TMS and WMS software, streamlining communication and improving efficiency. Air freight management software is an example of this.
Learn more about the primary benefit of shipping goods by air.
What is TMS in logistics?
Thanks to transportation management systems, logistics companies can plan routes, track shipments in real time, and optimize freight operations by selecting the most cost-effective carriers. Since it also helps with documentation and ensures that all shipments comply with customs and regulatory requirements, it´s making the entire logistics chain more efficient and transparent.
TMS in trucking
A transportation management system is essential for trucking companies to manage and optimize their transport operations. With TMS, companies can plan routes, track trucks in real-time, and choose the most cost-effective solutions for each shipment. It also streamlines load planning, billing, and documentation processes, reducing manual work and errors.
TMS for carriers
A transportation management system for carriers is designed to help freight carriers manage their logistics operations more effectively. Overall, a TMS for carriers enhances operational efficiency, reduces costs, and improves customer service by providing timely and accurate information.
TMS supply chain management
A transportation management system is also essential in supply chain management. It allows businesses, just like trucking companies or freight brokers, to efficiently plan, execute, and optimize logistics operations. TMS also integrates with other supply chain systems, offering a complete view of inventory, order fulfillment, and carrier performance. By using TMS, organizations can enhance collaboration, boost efficiency, and improve customer satisfaction.
How can a transportation management system (TMS) help to improve the logistics network?
In today's competitive logistics landscape, a transportation management system is essential for optimizing transport operations. TMS comes with many advantages. Below we are exploring the benefits of a transportation management system:
5 reasons why you should use a transportation management system
1. Centralized management
TMS centralizes all transportation-related activities into a single platform – making it easier for logistics teams to manage shipments, track deliveries, and coordinate with carriers. This approach reduces the risk of miscommunication and errors.
2. Efficiency in operations
A TMS significantly reduces manual workload and speeds up operational processes by automating various tasks, such as scheduling, load planning, and documentation. This efficiency allows teams to focus on strategic initiatives rather than repetitive tasks.
3. Enhanced customer service
With real-time tracking and timely updates, a TMS enables better communication with customers regarding shipment status and delivery times. This transparency improves customer satisfaction and loyalty.
4. Sustainability initiatives
By optimizing routes and improving load management, TMS contributes to reduced fuel consumption and emissions. This not only lowers costs but also supports sustainability goals within the logistics network.
5. Risk management
TMS helps identify and mitigate risks associated with transport, such as disruptions in the supply chain or compliance issues. By having contingency plans in place, companies can respond more effectively to unexpected challenges.
How to choose a transportation management system
In today’s fast-paced business environment, effective transportation management is essential for optimizing supply chains and meeting customer demands. At this point, you probably already understand it, but with many options available, choosing the right TMS can be challenging. Below you find key factors to consider when selecting the best transportation management system for your business.
What to look for in a transportation management system:
- Business sector - Manufacturer, wholesaler, retailer, or e-commerce
- Company size
- Complexity of processes
- Number of shipments
- Type of shipments
- ERP, WMS, or e-commerce integration (depending on the industry)
- Carrier integrations
- Additional features
- Budget
Manufacturers, retailers, wholesalers, and e-commerce businesses have unique needs when selecting a transportation management system.
What is the best transportation management system?
The best transportation management system (TMS) is one that meets a company’s specific needs and requirements. BLU, a transportation management system from Bertling, is developed in-house by Bertling Logistics together with BESITEC (Bertling EDI Services & IT GmbH). BLU combines all functions required for Transportation Management such as booking requests, quotations, invoicing, documentation, tracking, emission calculations, reports, data management, and warehouse management.
BLU combines high flexibility to adapt to changes with high uniformity to provide the highest quality of services. With BLU, we can offer tailor-made setups adaptable for any client, cargo, project, or supply chain. It is an excellent example for businesses seeking a reliable, user-friendly, and secure system with high flexibility. Read more about BLU – Transport Management System.
How much does a transportation management system cost?
TMS software can vary in cost. Our TMS, BLU, is available for all our clients through tailor-made EDI setups. Recently, we also developed our web-based global tracking system BLU4U, to get further visibility to your supply chain.
BLU4U is designed to give full control and visibility over the supply chain in real-time, allowing users to track their shipments anytime, anywhere. The system is easily accessible via Bertling’s website and offers customizable features, enabling companies to monitor everything from individual shipments to large logistic projects smoothly. Contact us to book a demo of BLU or BLU4U.
Read more about what's driving the increase in shipping costs.
Key features of BLU4U include:
- Tracking: Follow shipments in real-time, from origin to destination, with up-to-date status information.
- Default and customized statistic reports: Access standard reports or tailor reports to specific needs, providing insights into shipment timelines, statuses, and more.
- User-friendly dashboards: Visual dashboards display all key shipment information and can be customized for various project needs.
- Sustainability reporting: Track environmental metrics through BLU4U’s EcoFootprint calculator to support sustainable logistics practices.
- Compensating: Utilize compensation options and resources directly within the system to ensure project requirements are fully met.
In addition to its functional advantages, BLU4U has a high-security standard. Bertling has developed the system with a strong focus on security, achieving ISO 27001 certification – an international standard for information security. This means that customer data is protected to the highest standard. Access to the system is password-protected with individual user profiles and different access levels, from “read-only” to full editing rights.
Take control of your supply chain. From real-time shipment tracking to complete supply chain visibility, our BLU4U platform ensures efficiency, transparency, and confidence in every link.
For customers seeking even more features and advanced digital solutions through BLU4U, Bertling offers additional options such as a booking platform, quotation approval, invoice approval, and fully customized dashboards. These are premium features that are a part of the BLU4U Pro package. The pro page provides enhanced functionality for those who need it.
We at Bertling are committed to tailoring BLU4U to meet each customer’s specific needs, creating solutions that fit seamlessly into your operations. Whether it’s a customized dashboard or an advanced approval process, we’re here to adapt BLU4U to match your business perfectly.
Book your freight with Bertling transportation management system
At Bertling, we understand that efficient freight management is crucial for your business success. Our advanced transportation management system is designed to streamline your logistics processes, offering real-time visibility and control over your shipments. By leveraging our TMS, you can effortlessly book, track, and manage your freight – ensuring timely and cost-effective deliveries tailored for your needs.
With our user-friendly platform, you can access tools that optimize your supply chain, enhance communication with carriers, and improve overall operational efficiency. Our commitment to innovation and customer satisfaction means that you can rely on us to support your logistics needs every step of the way.
Experience the difference with Bertling’s TMS. Contact us and take advantage of our expertise to simplify your logistics operations.
