Question

What value does a Transportation Management System (TMS) create for a shipper? How might wide spread adoption of TMS’s change truckload transportation?

Answer 1

Transportation management system (TMS):

A transportation management system (TMS) is a subset of supply chain management (SCM) which is deals with the planning, execution, and optimization of the physical movements of goods and make it shipped or transport by proper management that give more effect on that.

As per the record 2016, Gartner report says that the global TMS market should be growing at a compound rate of 6.95% and reach $1.72 billion by 2019, up from $1.23 billion in 2014.

Benefits of TMS:

A fully deployed transportation management system can benefit organizations in the following ways:

• Transportation order planning and execution. TMS integrates well with enterprise order management, warehouse management, and purchasing systems, customer relationship management (CRM), supplier relationship management (SRM), and other systems for managing transport demand.
• Supply chain visibility and better control of inventory management. TMS enables users to track and monitor the lifecycle of orders and shipments in real time and get status updates on each. This offers clients an exact gauge for the stock and enhances the deceivability and responsibility of the store network arrange.
• Reduce invoice errors. By automating the freight payment and audit processes, users can reduce errors that may arise from manual procedures.
• Transport intelligence. Most TMS software offers users extensive insights and reporting capabilities that provide them with detailed visibility into freight data and metrics to help pinpoint any discrepancies. With this information, clients can make vital changes to enhance benefit conveyance and diminish cost, and they can likewise make reports.