What is TMS? How does a TMS transport management system work?​

What is TMS? TMS helps businesses manage and operate transport and delivery, reducing human costs and increasing labor productivity. Refer to this article by Viindoo software to learn TMS software and successfully apply it to the business.

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What is TMS? Who should use TMS app?

What is TMS? TMS (Transport Management System) is a system built on a cloud computing platform, supporting planning, implementing, and optimizing the freight process. 

Here are some features of the TMS:

  • Manage records and documents.
  • Manage personnel and fleets: The software helps manage fleet vehicles, vehicle owners, petrol, maintenance costs, cross-docking activities, etc.
  • Automate operating: The automation system supports business planning, time and route organizing, and time and effort optimizing.
  • Provide package track and trace feature: Businesses can accurately grasp the status of goods as well as delivery time and location in real-time with IoT-combined GPS. Besides, managers will receive notifications when problems occur.
TMS helps businesses scale up

TMS helps businesses perform good management

TMS app is widely used in businesses with huge transportation and delivery activities such as:

  • Manufacturers.
  • Distributors.
  • E-commerce businesses.
  • Retail businesses.
  • Transportation services company and logistics service centers.

In fact, all businesses these days can use the transportation system. Knowing the benefits of TMS can help businesses optimize operating costs and transport efficiency. 

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How does TMS work?

TMS collects and stores all information about goods, carriers, and delivery people. After that, the system will analyze all data, providing businesses foundation to optimize routes, choose modes of transportation, and track the delivery process. 

The most powerful feature of TMS is data analysis. This allows businesses to track and make reports on delivery activities and freight forwarders' efficiency. Managers can now make accurate decisions for the business.

The TMS app helps optimize the delivery activities of all parties

The TMS app helps optimize the delivery activities of all parties

In addition, TMS software can integrate with the WMS warehouse management system and ERP software. All systems working together will form a comprehensive SCM Software that supports all operations

  • ERP supports planning resources, accounting, storing orders, and invoicing.
  • WMS warehouse management system helps manage warehouses, arrange goods, fulfill orders, conduct delivery, and track inventory.
  • TMS is responsible for freight management and optimization of routes and transportation costs.

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Benefits of TMS for businesses

Multiple Vietnamese import-export and logistics businesses are starting to apply information technology, including TMS. See here what is TMS’s benefits.

  • Reduce distribution costs

Synchronizing information between warehouses and vehicles can take a lot of time. There are many procedures such as waiting for documents, loading and unloading goods, etc. The system supports fleet management and human resource management, allowing businesses to perform smooth transportation processes. As a result, businesses can cut down inventory costs.

  • Increase supply chain visibility

TMS software manages and tracks orders as well as delivery cycles in real time. Therefore, managers can conveniently track and check all information about goods at any time.

  • Reduce administrative costs and errors in invoices

Businesses can use TMS to cross-check invoices with goods owners, vehicle owners, and related parties. The system automates the billing and freight audit processes, thereby reducing errors during these procedures. In addition, users can quickly pay all costs incurred via the driver's mobile app.

TMS helps businesses scale up

TMS with great benefits for businesses

  • Track transportation with one platform

Using traditional methods to manage goods and transportation takes a lot of time. There are tasks such as making phone calls, regulating routes, and controlling goods quality. TMS has integrated all transportation information from GPS and black boxes to help easily track bills of lading.

  • Improve customer service

The TMS provides a separate transport management panel for each customer. This allows customers to grasp the status of goods like waiting to receive goods, being delivered, delivered, etc. As a result, customer trust increases.

  • Support business growth

Organizing and managing transportation is costly for traditional operators as fleet vehicles are large and there are numerous customers and routes. In addition, service development requires a team of personnel highly qualified in the transportation field.

TMS allows a person once trained to be able to run all transportation activities. This automation significantly helps optimize time for planning and conducting work.

TMS helps businesses scale up

TMS helps businesses scale up

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How is TMS different from WMS?

TMS and WMS are supporting software for supply chain management and freight forwarding. However, these are two different systems. TMS specializes in freight forwarding management, while WMS focuses on warehouse management.

In fact, TMS software and WMS software can support each other very well, especially when applied to logistics businesses. Using both systems will help businesses continuously improve and grow thanks to the reporting of strengths and weaknesses. Companies can conveniently propose measures to improve performance.

Readers can read the article about the WMS warehouse management system to learn more detailed information.

Differences between TMS and WMS

Differences between TMS and WMS

The article has answered the question of what is TMS and provides necessary information about TMS. We hope that the article supports readers with a specific view of the TMS transport management system and its application to the management system. Follow Viindoo to know other useful information.

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What is TMS? How does a TMS transport management system work?​
Viindoo Technology Joint Stock Company, Amber Nguyen January 18, 2023