Selecting the Right TMS: Key Considerations for Success

Many businesses start out thinking they only need a freight management system (FMS). But as soon as requirements like managing delivery runs, coordinating drivers or handling complex routing come into play, they’ve moved into transport management system (TMS) territory - often without realising it.

Read on to learn what a TMS is, how it differs from an FMS, and what to consider when selecting a TMS for your business. Whether you’re managing your own fleet, working with third-party carriers or navigating the complexities of both, putting in place the right TMS can streamline your operations, improve visibility and drive greater efficiency across your supply chain.

What is a Transport Management System (TMS)?

A TMS is a platform designed to manage the movement of goods, often with a focus on owned fleets or contracted drivers. It helps businesses plan, execute and optimise the physical movement of goods, including:

• managing delivery runs and scheduling drivers
• optimising delivery routes
• tracking vehicles, and
• providing visibility to your entire supply chain of driver and delivery status.

However, the term TMS is often used interchangeably with FMS, even though they serve different purposes.

What’s the difference between a TMS and an FMS?

Many businesses rely on both, and in this case a platform that combines the two is where the real value lies.

Key selection criteria for choosing a TMS

Align platform capabilities with your business requirements

When evaluating a TMS, businesses often focus on solving pain points. But choosing the right TMS should start with understanding what your business is doing right now and asking, How can we do things better?

Start by mapping out your existing workflows and identifying areas where the TMS can enhance, simplify, and automate operations - rather than simply replicate what’s already there. This could mean transitioning from manual, paper-based processes or outdated systems that technically work but aren’t delivering the efficiency your business needs. The goal is to move from processes that are just functional to ones that are optimised, scalable and significantly better.

That said, you don’t need to overcomplicate the process. Choosing the right TMS often comes down to one simple question: Does the system meet your business requirements?

• Consider the basics - like the number of trucks and drivers you manage, the complexity of your delivery routes, the different types of freight you need, and any specific rules or parameters you rely on.
• Then evaluate whether the TMS can handle those needs natively, without the need for extensive customisation.

Look for integrated TMS and FMS functionality

Managing your own fleet is one thing. Managing your fleet alongside third-party carriers is when things can get far more complicated - and where a truly integrated platform can make all the difference.

Relying on separate systems for each often creates data silos, fragmented workflows and a whole lot of unnecessary admin. An integrated platform fixes that by pulling everything together, giving you a single source of truth across your transport operations. You can track shipments end-to-end - whether they’re with your own drivers or external providers - optimise routes on the fly and manage it all without the hassle of bouncing between systems.

Integrated solutions also improve customer service by providing consistent tracking information, regardless of whether a shipment is handled by your own fleet or a third-party carrier. Having a unified view like this supports better communication, fewer errors and more proactive customer updates.

Despite the clear advantages, this dual capability is rare. Only a few systems - including Cario - offer true integration of TMS and FMS functionalities within a single solution, making them uniquely positioned to handle the full spectrum of transport and freight management needs.

Process automation and simplification

A lot of businesses stick with outdated systems because they technically work. But there’s a big difference between something that works and something that adds value. That’s where automation comes in. A robust TMS should shift operations away from outdated, manual workflows, replacing them with streamlined, automated systems that eliminate the friction points.

Take scheduling and driver allocation, for example. In manual systems, this often means juggling spreadsheets, manually assigning jobs and hoping it all fits together. With a TMS, those jobs are allocated based on pre-set rules - factoring in driver availability, route optimisation, time-critical deliveries and even live traffic data - without anyone needing to intervene.

Automation also plays a critical role in the data flow. Instead of relying on manual data entry, information moves seamlessly through the system. Orders are processed automatically, carrier bookings are triggered without delay, and real-time tracking updates flow directly to both internal teams and customers. And as your business grows, or your freight needs change, the system can evolve to manage it.

Ability to handle complexity and customisation

Some businesses can get by with standard, out-of-the-box solutions. Others require highly customised functionality to keep operations running smoothly.

If your business has simple requirements, a basic TMS might cover the essentials like booking jobs, tracking deliveries and managing a small fleet. But when you begin dealing with even slightly more complex supply chains, diverse carrier networks or specialised workflows and system integration, you will need a system that can flex to fit.

Customisation gives you the ability to build workflows tailored to your specific environment. This could mean supporting multi-layered supply chains, managing unique compliance requirements, or creating tailored reporting dashboards that provide insights relevant to your business.

Testing, API access and Proof of Concept (POC)

A TMS might look good on paper, but the real test is how it performs in practice. That’s why it’s important to have a way to validate system fit before making a long-term commitment.

In this case, we have three options for you:

• we can walk you through a customised demo using live data, or
• create a demo account for you using dummy data, or
• if you have more complex requirements, we can build a proof of content (POC) environment for you to test more extensively

Additionally, we have publicly available API documentation to help your technical teams assess how easily the TMS will connect with your ERP, CRM or carrier platforms.

Ongoing support and continuous improvement

What happens after implementation matters just as much as the capabilities you signed up for. Look for a TMS provider that offers reliable support and demonstrates a commitment to investing in the system you’ll come to rely on.

You might prefer to manage your TMS in-house, or you may require ongoing administrative support, such as help with configuring zones, system updates or fine-tuning workflows as operations evolve. Using a comprehensive managed service instead of doing it yourself can offer added value, covering everything from routine administration to strategic optimisation. Either way, it’s essential to assess how well your provider can support your business beyond the initial setup.

A good TMS provider should also focus on continuous platform improvement - whether that’s optimising system performance or rolling out new features.

Ready to simplify your transport management? See how Cario stacks up

Cario is one of the few solutions that combines both TMS and FMS in a single platform. Whether you’re managing your own fleet, coordinating third-party carriers or doing both, we’d love to show you how Cario can support you.

Book a demo to see how Cario handles your entire supply chain.