Your Tender Criteria Checklist for Selecting the Right Freight Management System

Mandatory | Functionality and features for your FMS

Carrier management

Managing carriers isn’t just about getting goods from A to B - it’s about doing so with precision, efficiency, and cost control.

The functionality you’re needing here is:

• Multi-carrier comparison tools for informed decision-making - the ability to evaluate freight options in real-time with side-by-side comparison on cost, transit time, and service quality.
• Automated quoting, booking, and manifesting processes – removing manual bottlenecks that might otherwise happen from order to delivery.
• Order management capabilities for diverse freight types - whether you’re sending pallets, parcels, refrigerated or dangerous goods.
• Flexibility to manage both B2B and B2C carriers, and their unique requirements.
• Multi-geographical carrier support across Australia, NZ, and international markets – so you can manage cross-border logistics without unnecessary complications, creating a cohesive network that supports growth rather than holds it back.
• Real-time tracking for shipment visibility - robust tracking and tracing functionalities that work across all carriers, providing transparency for both businesses and customers.
• Electronic Proof of Delivery (POD) for secure delivery confirmation.

Integrations

In the logistics world, integrations are what turn chaos into coordination. That means it should seamlessly connect with your existing ERP, eCommerce, and warehouse management systems (WMS) - and make your data flow as smoothly as your freight.

APIs are the connectors that let your FMS speak the same language as your existing platforms. They keep systems in sync, enabling real-time data sharing without any manual middlemen. With a robust integration you can achieve smoother workflows, fewer errors, and up-to-the-minute accuracy across your operations. In this case, look for systems that offer native plug-ins, this can simplify integration even further, reducing implementation time and ensuring a smoother onboarding process.

That being said, while your FMS may have the capabilities to integrate with your tech stack, it should also be capable of operating as a standalone solution for businesses without sophisticated existing systems. This dual functionality ensures the system will adapt to your unique operational needs but also scale as your business grows.

Rules-based engine

Logistics is full of curveballs, and your FMS should be ready to handle them all. That’s where a rules-based engine comes in – it gives you complete control behind the scenes, ensuring your operations run smoothly no matter how complex the requirements.

For starters, your FMS needs to easily handle complex rules - whether that’s tailoring processes for a specific carrier, or accommodating the unique demands of a key customer. This level of configurability allows businesses to adapt quickly to shifting needs without constant manual intervention.

Another must-have is a pre-quoting engine. Think of it as your cost-efficiency autopilot, constantly scanning for the lowest-cost options without sacrificing service quality. This capability bakes cost-efficiency into every decision, saving both time and money.

Invoice reconciliation

Invoices can be a minefield of errors, and it’s a time and cost issue for resources to comb through every line item manually. A full-featured Freight Management System (FMS) should come equipped with third-party invoice management capabilities to handle this type of heavy lifting.

Look for an FMS that can automatically compare a carrier’s actual invoice with the expected cost. When discrepancies arise – perhaps due to billing errors, unexpected surcharges, or incorrect rates -the system flags them as exceptions. This ensures that only outliers demand manual attention, saving your team countless hours of effort and significantly reducing operational overhead.

Your FMS should also offer integration with your finance and accounting systems (much like the integration with your ERP and WMS that we discussed above). By linking your FMS directly to your financial tools, you can create a unified workflow for managing invoices, reconciling costs and keeping records updated without duplicating effort.

Marketing and messaging

It’s a less obvious area of an FMS, but it shouldn’t be overlooked. Your FMS should provide new ways to engage customers. strengthen your brand, and even create opportunities for sales.

Advance Shipping Notices (ASN) and SMS notifications are features that keep customers informed at every milestone - whether a shipment has been picked up, is onboard, or has been delivered. This translates to timely, accurate updates that build trust and reduce customer service inquiries.

But it’s not just about status updates. A great FMS should also offer proactive notifications, alerting customers immediately if a delivery is delayed. This minimises frustration and shows your business values communication even when things don’t go as planned.

Finally, the FMS should include marketing integration, allowing you to turn routine notifications into sales opportunities. By embedding banners or offers into ASNs, businesses can upsell products or encourage repeat purchases, turning operational touchpoints into revenue drivers.

Reporting and analytics

Data is a valuable by-product of logistics, and put to work it can greatly optimise your operations. Your FMS must come with robust reporting and analytics capabilities, turning raw data into actionable insights that drive better decision-making.

Out-of-the-box reporting functionality provides quick access to critical metrics, serving up real-time visibility into your logistics performance, from cost analysis to carrier efficiency, without the need for additional setup.

For more unique structured businesses, custom reporting gives you the ability to tailor reports to specific business requirements, whether that’s tracking a niche KPI or creating dashboards for different stakeholders.

Again, integration comes into play. Connecting to your Business Intelligence (BI) system takes reporting to the next level. It allows you to feed logistics data into your existing BI tools, merging logistics data with broader business insights to support strategic planning.

Optional | Functionality and features for your FMS

Dealer portal

For businesses looking to go the extra mile in customer experience, a dealer portal will provide a competitive edge. While not essential, this feature offers enhanced visibility and self-service capabilities that can streamline communication and reduce operational bottlenecks.

For example, it will provide enhanced visibility to your key customers, stores, and distribution centres (DCs), giving them access to real-time updates on inbound deliveries and transfers, building trust and improving coordination across the supply chain.

A self-service portal also allows users to independently resolve their enquiries, such as tracking shipments or checking delivery statuses, without needing to contact customer support. This empowers your customers while reducing the workload for your service teams, freeing up resources for more complex issues.

Transport management system for own fleet

If your business operates its own fleet, adding a transport management system (TMS) goes a long way towards enhancing efficiency and customer experience. Again optional, this feature will bridge the gap between third-party and in-house logistics, offering greater control and visibility over your operations.

A fleet management application is at the core of this functionality. It puts an app into the hands of every driver that will provide them with a self-optimising delivery route, and the ability to upload evidence of deliveries that will be automatically synced to HQ systems. These features, and others, are available to every driver, whether part of your own fleet or third-party carriers. These are game-changing capabilities that will ensure smooth coordination and optimised routing – and overall improved customer service.

To elevate the customer experience further, real-time notifications for fleet deliveries are a must. Think Uber-style tracking, where customers and stakeholders can see deliveries on a map in real time. This visibility allows recipients to plan ahead, knowing exactly when to expect their shipments.

Nice to have | Functionality and features for your FMS

Artificial Intelligence integration

AI can take your FMS from a functional tool to a proactive problem-solver. Selecting an FMS platform with embedded AI will add a powerful layer of intelligence to your logistics operations.

One valuable capability is proactive issue anticipation. AI can analyse patterns in your FMS data to identify potential disruptions - think delays, capacity issues, or billing errors - before they occur. Your team can then quickly act to prevent small problems from snowballing into larger ones.

Another useful feature is automated customer inquiry responses. By handling straightforward queries - like tracking updates or delivery statuses - AI-powered systems reduce the burden on your customer service teams and provide faster responses for customers.

Sustainability

Sustainability is a growing priority for businesses and customers alike. While not mandatory, incorporating sustainability features into your FMS will demonstrate your commitment to reducing environmental impact.

For example, automatically calculating your emissions, and quantifying the environmental footprint of your transport activities within your FMS, allows businesses to proactively identify opportunities for greener practices and share transparency with stakeholders. As carbon reporting requirements evolve through 2025, it will be critical to have the systems that can calculate your scope 3 emissions.

Another forward-thinking feature is carbon estimates at booking. This provides an upfront calculation of the carbon impact for each shipment, allowing customers to make more eco-conscious choices and aligning with the increasing demand for sustainable shipping options.

Mandatory | Platform and company features

Scalability and flexibility

An FMS should be selected not just for what you need today but also for where it’s going. Scalability and flexibility are critical if you want your system to grow alongside your operations, adapting to your changing demands and workflows.

Your FMS must be capable of managing fluctuating freight volumes, whether you're handling a seasonal spike or long-term growth. The ability to scale seamlessly prevents bottlenecks and ensures consistent performance under pressure.

Customisation is essentially equal. Every business has unique needs, and your FMS should be flexible enough to tailor workflows, processes, and architecture to suit your specific requirements. This ensures that the system fits your business, rather than forcing your business to adapt to the system.

Finally, multi-modal support is vital for businesses that rely on diverse transportation modes. Whether it’s by air, sea, road, or rail, your FMS must accommodate different methods of transport, giving you that critical efficiency and visibility across your entire logistics network.

Data security and compliance

Trust hinges on how well you safeguard sensitive data. From customer details to freight information, your FMS must prioritise data security and compliance to protect your business and meet regulatory obligations.

Your FMS should include advanced protocols to guard against breaches, unauthorised access and cyber threats. This might involve encryption, multi-factor authentication, and regular vulnerability assessments to keep your systems and data safe.

Logistics operations often intersect with strict industry-specific regulations, from data privacy laws to freight handling standards. Therefore, your FMS must ensure adherence to these rules, providing the tools to remain legally compliant while avoiding costly fines or disruptions.

Usability and training

Even the most advanced FMS is only as effective as the people using it. That’s why usability and training are critical to ensure seamless adoption and optimal performance across your team.

Your FMS should simplify complex logistics tasks via an intuitive, user-friendly interface, allowing users to navigate the system easily without extensive technical knowledge. A clean design, logical workflows, and clear instructions make all the difference in reducing errors and boosting productivity from day one.

Every team is made up of users with varying levels of expertise, so your FMS provider must offer training that caters to everyone - from new hires, to seasoned logistics professionals. These programs should be accessible, thorough, and tailored to help users maximise the system’s potential.

Support and maintenance

To ensure smooth operations and long-term value, you will want access to responsive support and ongoing maintenance.

When issues arise - whether it’s a technical glitch or a time-sensitive question - having access to local, knowledgeable support can make all the difference in minimising downtime and keeping your logistics running smoothly.

As technology evolves and your business grows, your FMS needs to keep pace. Updates should address security vulnerabilities, add new features and ensure compatibility with the latest systems - keeping your operations future-ready.

Going that final mile for a decision that drives growth

Remember when evaluating and comparing your future logistics platform, the best FMS shouldn’t only adapt to your operations, it should also improve and elevate them. Stick to these criteria, and you’ll select a system that delivers for your business today and tomorrow.

Let Cario help improve your supply chain

When it comes to tracking freight in Australia, Cario is a leading freight management system. As an Australian-based, advanced freight and transport management software company, our solution is engineered to simplify the management of large-scale, complex freight operations for enterprise organisations.

Contact Cario today to discover how you can get transparency, control and automation over your supply chain.