transportation management system (TMS) definition

A transportation management system (TMS) is software that facilitate interactions between an organization's order management system (OMS) and its warehouse management system (WMS) or distribution center (DC).

TMS products serve as the logistics management hub in a collaborative network of shippers, carriers and customers. Common TMS software modules include route planning and optimization, load optimization, execution, freight audit and payment, yard management, advanced shipping, order visibility and carrier management.

The business value of a fully deployed TMS should achieve the following goals:

  • Reduce costs through better route planning, load optimization, carrier mix and mode selection.
  • Improve accountability with visibility into the transportation chain.
  • Provide greater flexibility to make changes in delivery plans.
  • Complete key supply chain execution requirements.

 

This was first published in August 2015

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