What is a TMS System – Transportation Management Software

The Cario Team 15 March 2023

When done right, TMS delivers tremendous value and results for the freight transportation industry. It can improve efficiency for shippers, brokers, and freight forwarders alike. It can help carriers articulate what needs to be done to get shipments from Point A to Point B in an efficient manner.

But what exactly is a TMS?

TMS stands for Transportation Management Software. Transportation Management Software is a computer-driven solution that helps businesses manage their freight and improve productivity. A TMS system makes it possible to track all the information related to shipping orders—from the location and status of freight to transportation assets and costs. Coupled with GPS technology and improved GPS accuracy, businesses can use a TMS to organise routes on their devices.

Transportation management software is a cost-effective way to manage more than just a company’s transport schedule. In fact, TMS offers many advantages, including improved efficiencies, reduced operating costs, and optimised route planning.

The right transportation management system can transform how you get goods in and out of your warehouse or distribution centre. It allows you to manage every step along the supply chain, from planning and scheduling to forecast sales and shipment tracking. And as the supply chain becomes more complex, having a good TMS solution can mean better customer service and higher business revenue.

Why are TMS Systems Important in the Freight Industry?

A TMS transport management system is a valuable tool for any business, but it’s particularly important in the freight industry. Why? Let’s take a look at the reasons why TMS is important in the freight industry.

Freight Cost Tracking

The ability to track and manage freight costs can save time and money for businesses. Most companies use transportation management solutions to keep track of the whole process from receiving an order to delivering goods. This helps them avoid having to reorder products or pay too much for the shipping fee.

Deliveries On Time

A TMS provides real-time updates on the delivery schedule of freight, so you know if they are going to arrive on time or not. This can help companies avoid delays that result in lost revenue and dissatisfied customers. A TMS helps ensure items ordered are actually being produced as they were ordered, which can aid in reducing inventory costs.

Order Fulfillment

A good transport management system enables companies to better fulfill orders by providing data, such as shipment details, status reports, delivery information, and more, all in one place. This makes it easy to track your orders from beginning to end, allowing you to gain insight into what happens with each shipment at any given time. It also helps ensure that you are getting paid for the products you sell or deliver.

Benefits of Using Transportation Management Systems

Reduced Costs

Reduced costs are a significant benefit of using a TMS. Transportation management solutions streamline the process of shipping and transportation. It replaces manual processes and eliminates unnecessary paperwork, thereby reducing costs for your company. This helps you save money on labour and reduce administrative costs, which translates to increased efficiency and improved overall productivity.

By using a TMS, businesses can provide a platform for collaboration and information sharing, allowing clear tracking of shipments, access to up-to-date location data, and automated cargo-related transactions by customers. This dramatically reduces the time spent on manual processing activities and results in lower costs for customers as well.

Supply Chain Simplification

A transport management system enables companies to track all shipments in real time, giving them the capability to better manage their entire supply chain. This way, companies can streamline their supply chains and improve visibility into their processes, which can ultimately lead to better decision-making and cost savings.

With transportation management solutions, all shipments are processed through one system, which eliminates duplicate paperwork and allows companies to track their inventory more efficiently. This makes it easier for companies to locate their shipments in real-time and eliminate mistakes during shipment processes.

Automation of Business Operations

A TMS allows for automated tracking of shipments at every stage of the process—from origin to destination—which reduces manual errors and increases efficiency for businesses across industries.

Using a smart TMS like Cario, you can automate your shipping system, so you don’t have to spend time manually entering data. This reduces errors made by humans, allowing you to manage your freight management needs efficiently with fewer resources.

Shipping Security & Tracking Visibility

The most obvious benefit of using transportation management software is the increased visibility it provides over the supply chain. Using a TMS transport management system provides organisations with greater visibility into their transportation operations through automatic tracking of shipments at all times during transit, as well as with increased security through real-time alerts if there is an issue with a shipment’s progress.

The data collected by the TMS can be used to identify problems and predict potential delays in freight shipments. This is particularly important when you are dealing with large volumes of goods or have a high level of customer demand.

Import & Export Compliance

Integrating a TMS system into your supply chain can help your business comply with import and export laws and regulations. For example, if your business provides services for other businesses in different countries, your company must comply with local laws regarding taxes and duties on imported materials or products from other countries.

Using a TMS allows you to track and monitor the movement of products across borders. This helps you not only ensure your products are being delivered on time but also comply with any additional customs requirements that may exist within your country’s borders.

Transportation Management Software – The Future of Freight

The future of Transportation Management Software is bright. The use of this type of service has been on a steady rise over the last decade, and it is expected to continue growing. With a TMS, companies can optimise their freight transportation processes, improve efficiency, and reduce costs.

The emergence of blockchain technology has sparked interest in using it to improve existing processes and cut down on costs. Blockchain is a distributed database system where information is stored across a network of computers rather than being held in one place. The distributed nature of the ledger makes it difficult for hackers to corrupt data or gain access to sensitive information that could be used for nefarious purposes.

Nowadays, blockchain technology is used to manage large volumes of data in real-time, especially when that data includes sensitive information like freight movements and invoices or receipts. It can help improve transparency in the supply chain by making it easier for businesses to track shipments from start to finish. Additionally, blockchain can help reduce fraud by giving companies more control over their records and facilitating better data security measures.

Meanwhile, other emerging trends that are starting to impact the freight industry include the use of RFID tags and other automation systems, such as robotic warehouses and self-driving trucks. Radio frequency identification (RFID) tags are becoming more commonplace for tracking goods and communicating with delivery networks, while robotic warehouses and self-driving trucks have become increasingly popular to improve efficiency and reduce manual labour costs.

Let Cario Help with Your Transportation Management Systems

Transportation management software provides a way to track goods, manage relationships, and analyse data. This information is essential to the smooth running of any business, as it allows you to identify problems or opportunities for improvement in your operation.

Cario has proven to be a reliable TMS system option for companies seeking high-quality transport and logistics solutions. As a comprehensive, integrated platform, it offers complete visibility into every shipment, and its advanced data analytics allow you to stay informed about your shipments in real time.

With its intuitive user interface, the system can easily be tailored to meet the needs of individual companies, allowing customers to quickly and efficiently move freight with minimal disruption. As smart software, Cario incorporates various security measures that ensure the safety of your data.

Looking for a dependable, secure solution for your transportation management needs? Contact Cario today and discover how you can bring your distribution to a whole new level.