Let’s start at the very beginning… What is a Transport Management System (TMS)?
Put simply, a TMS is a software platform designed to help businesses plan, execute and optimise the physical movement of goods. It provides visibility into day-to-day transportation operations, ensures timely delivery of freight and goods and ultimately, helps to reduce costs.
Who needs a Transport Management System?
Companies with complex logistics needs, including manufacturers, distributors, retailers, and logistics service providers can benefit from a TMS to improve their transportation operations.
How does a TMS work?
A TMS typically integrates with a company’s existing ERP and WMS systems. It collects data from various sources using algorithms to plan and optimise routes, track shipments in real-time and provides accurate reporting and analytics.
What are the key features of a TMS?
Route optimisation, load planning, carrier management, shipment tracking, order management, freight audit and payment, analytics and reporting and integration capabilities are all key to any successful TMS
Can a TMS handle multi-modal transportation?
Yes, many TMS platforms support multi-modal transportation, including , road, rail, air and sea, allowing businesses to optimise logistics across various modes of transport.
How does a TMS optimise routes?
A TMS uses algorithms to analyse factors like traffic conditions, delivery windows, vehicle capacity and fuel efficiency to determine the most efficient routes for transportation.
How long does it take to implement a TMS?
Implementation time can vary depending on the complexity of the system and the specific requirements of the business, but it typically ranges from a few months to a year.
Can a TMS integrate with existing ERP and WMS systems?
Yes, a good TMS should seamlessly integrate with existing ERP and WMS systems to ensure data synchronisation and streamline operations.
What are the common challenges in TMS implementation?
Data integration issues, resistance to change from staff, high upfront costs and ensuring the system meets specific business needs are some of the challenges companies face when implementing a TMS.
What are the benefits of using a TMS?
Reduced transportation costs, improved delivery times, enhanced visibility into the supply chain, better customer service, and more efficient use of resources are some of the immediate upsides to integrating a TMS into your business.
How can a TMS help reduce transportation costs?
Reduced costs by optimising routes, improving load planning, reducing fuel consumption, automating manual processes and negotiating better rates with carriers are all huge benefits.
The ROI can vary, but many companies see significant savings in transportation costs, improved operational efficiency and enhanced customer satisfaction within the first year of implementation.
Compliance and Security
A TMS helps ensure compliance with transportation regulations by providing necessary documentation, tracking regulatory changes, and automating compliance reporting.
Security measures vary by provider, but a robust TMS should include data encryption, secure user access controls, regular security audits and compliance with data protection regulations, such as GDPR.
What to consider when choosing a TMS provider
Factors such as the provider’s experience in your industry, the scalability of the solution, ease of integration, user-friendliness, customer support and total cost of ownership should all be given equal consideration when deciding on the best solution for your business.
Different options include on-premises, cloud-based and hybrid TMS solutions. Cloud-based solutions are increasingly popular due to their scalability, lower upfront costs, and ease of updates.
Many TMS solutions offer customisation options to tailor the system to specific business requirements, though the extent of customisation can vary by provider.
