- Introduction to TMS
- Key features of a Transport Management System
- The concrete benefits of a TMS
- TMS in the Supply Chain
- TMS for all company sizes
- Implementing a TMS
- The evolution of the transport TMS market with the development of TMS in Saas mode for fast, easy implementation
- Why choose Shiptify's Saas TMS?
Introduction to TMS
What is a TMS?
A TMS, or Transport Management System, is a software package for managing and controlling transport operations. It is part of the large family of logistics software used by companies to optimize their supply chain (ERP, OMS, WMS...).
There are as many TMSs as there are software publishers; each TMS does not necessarily cover the same functions, and is not necessarily aimed at the same target audience.
Nevertheless, there are two main categories of transport TMS:
Each of these categories has very different functions, which it is important to clarify.
The Transport Management System (TMS) is a software tool used in the freight transport sector.
- TMS for shippers :
- Users: This type of TMS is used by companies that ship goods, such as manufacturers, distributors or retailers.
- Features: Focuses on carrier selection, freight rate management, route optimization, order loading, shipment tracking, and sometimes returns management.
- Objective: The main objective is to optimize the shipping process to reduce costs and improve efficiency, by ensuring visibility across the entire supply chain.
- TMS for Carriers :
- Users: it is aimed at companies that provide transportation services, such as trucking companies, freight airlines, and courier companies.
- Features: Focuses on route planning and optimization, fleet management, real-time vehicle tracking, transport document management, and often integration with warehouse management systems (WMS).
- Objective: The aim is to maximize the efficiency of transport operations, minimize operating costs, and improve customer service.
The evolution and growing importance of WMS in modern logistics.
The evolution of transportation management systems has played a crucial role in the transformation of modern logistics. Historically, logistics relied on manual methods and fragmented processes, making tracking shipments and managing transport costs complex and inefficient. With the advent of TMS (transport management systems), these challenges were gradually overcome. These systems have introduced advanced automation and integration, enabling precise planning, optimized execution, and real-time visibility of supply chains. The integration of technologies such as AI, data analytics, and IoT has further enhanced their effectiveness, making predictive analysis and real-time decision-making possible, essential for meeting dynamic market demands.
Today, TMS are not just tools for managing transport, but strategic elements that enhance companies' competitiveness by optimizing costs, improving customer service and offering greater flexibility in the face of changing logistical challenges. Their importance in modern logistics continues to grow, as they enable companies to remain agile and responsive in an ever-changing economic landscape.
Key features of a Transport Management System
End-to-end operational management
- Integration with other systems(ERP, WMS, etc.) for seamless data management.
- Automated documentation (invoices, delivery notes, etc.) to reduce errors and processing time.
- Returns management functionality for a complete logistics loop.
Route optimization and cost reduction
- Use of predictive analysis to anticipate transport needs and reduce emergency costs.
- Dynamic capacity management to adapt to fluctuations in demand.
Decision support and improved customer satisfaction
- Advanced analysis tools to identify trends and areas for improvement.
- Customer communication module for real-time updates and seamless interaction.
Scope and evolution of functionalities
- Adaptability and scalability to respond to market changes and new regulations.
- Integration of eco-responsible functionalities for sustainable logistics.
The concrete benefits of a TMS
So, why is it crucial to adopt a TMS?
- The need to respond to increasing logistical complexity and market pressure.
- Competitive advantage through optimized transport management.
Operational and strategic benefits:
- Improved internal and external collaboration through a unified platform.
- Ability to react quickly to disruptions thanks to improved visibility and control.
Impact on cost reduction and improved efficiency:
- Reduction in indirect costs associated with transport management (administrative, time management, etc.).
- Better resource allocation thanks to optimized planning and execution.
TMS in the Supply Chain
The role of the TMS in supply chain management
The TMS is essential to supply chain management, acting as a central point of control and coordination. It integrates various aspects of the chain, from production to distribution, ensuring that products are transported efficiently. Thanks to its advanced algorithms, the TMS optimizes delivery routes, reduces transit times and lowers transport costs, while enabling more efficient allocation of resources such as vehicles and drivers. It also plays a crucial role in risk management, helping to identify and proactively manage potential problems. In addition to this, the TMS ensures compliance with regulations and provides detailed analyses for informed decision-making.
How is the TMS changing consumer expectations?
The TMS has considerably changed consumers' expectations of logistics. With optimized transport planning, consumers now expect faster, more reliable deliveries. Their ability to offer real-time tracking has increased demand for complete transparency on order status. Consumers also benefit from more personalized services, such as the selection of specific time slots for delivery, thanks to the flexibility offered by TMS.
What's more, with the ability of TMS to optimize routes and reduce emissions, consumers are increasingly attentive to sustainable, environmentally-friendly transport practices. Thus, it not only transforms supply chain management, but also profoundly influences consumer expectations and experiences, making them more demanding in terms of speed, reliability, transparency, personalization and sustainability of delivery services.
TMS for all company sizes
TMS adaptability for large companies and SMEs
The adaptability of transport management systems (TMS) is one of their most notable features, enabling them to be used by both large companies and SMEs. For large companies, the TMS offers a robust platform capable of handling high volumes of transactions and data, while providing deep integration with various existing systems, such as ERP or warehouse management systems. They benefit from advanced functionalities such as complex route planning, diversified fleet management, and in-depth analytical capabilities to optimize their large-scale supply chain.
On the other hand, SMBs find in TMS a flexible and scalable solution, often with customization options and costs tailored to their specific size and needs. It simplifies logistics processes, reduces start-up costs and offers access to technologies that were previously out of reach. Even with limited resources, SMEs can benefit from increased visibility of their shipments, better control of transport costs, and the ability to compete more effectively in the marketplace.
Implementation examples in different corporate contexts
In the context of large companies, implementing a TMS can involve integrating multiple distribution centers, managing complex transportation networks spanning several regions or countries, and manipulating vast amounts of real-time data to make informed decisions. They can use the TMS to orchestrate logistics operations on a global scale, benefiting from increased efficiency and consistency across their extended operations.
For SMEs, implementing a TMS often focuses on achieving quick wins, such as improving local routing efficiency, reducing immediate transportation costs, and improving customer satisfaction through more accurate delivery times. SMEs use TMS to streamline their processes, often starting with basic functionalities and evolving to more advanced ones as their business grows.
In both cases, the Transport Management System adapts to specific needs, offering a customizable and scalable solution that can support the growth and efficiency of transport operations, regardless of the size or complexity of the company.
Implementing a TMS
Planning, execution and optimization of logistics processes
Implementing a transport management system (TMS) requires a methodical approach, starting with careful planning to identify the company's specific needs and the objectives to be achieved with the TMS. This step is crucial to ensure that the chosen system is perfectly aligned with the company's overall logistics strategy. Once the TMS has been selected, the implementation phase involves integrating it into existing logistics processes, with particular emphasis on user training and data migration. Optimization is an ongoing effort, where the TMS is regularly adjusted and updated to respond to changes in operations or the market environment.
Implementing a TMS is a complex undertaking, requiring careful planning and execution, as well as continuous attention to process optimization and improvement. By overcoming the challenges and following best practice, companies can reap the full benefits that an effective TMS can offer.
TMS market: SaaS for fast, easy implementation
Historically, the market has been dominated by TMS products licensed from major software vendors. Licensed means that the software belongs to the company. Solutions are therefore installed on the company's servers and are custom-developed.
This format generally involves heavy investment when the software is installed, not to mention subsequent maintenance costs. Licensed TMSs also require a major commitment from IT teams. Implementation times can be very long, depending on the size of the organization. This can sometimes take up to 2 years. These constraints are one of the reasons for the low rate of equipment among shippers. Many of them don't have the resources to set up this type of transport TMS, and the ROI is often not forthcoming.
In recent years, a new offering has appeared on the market: TMS in Saas mode. This means that the company does not own the software, but only uses it. Maintenance and hosting are provided by the software publisher. The company pays only a flat fee per use.
The advantage of this model is that there are no set-up costs, and some solutions are even Plug and Play. They therefore generally require no IT investment. These models are more focused on standard use than licensed TMSs, which are ultra-customized.
The Saas mode is therefore particularly interesting for companies with small IT teams who need to implement a solution quickly. What's more, this pay-as-you-go system is ideally suited to fast-growing or seasonal companies. The cost of the tool adapts to their activity.
The Saas mode is also more agile, and adapts more easily to changes in usage and the market.
Why choose Shiptify's Saas TMS ?
Shiptify has positioned itself as an innovative player in the logistics field with its SaaS mode TMS software, designed to simplify and modernize shipment management. This cloud-based system facilitates the logistics process for companies of all sizes, by automating and centralizing complex transport tasks in a single, easy-to-access platform.
With Shiptify, managing transport orders, from quotation to delivery, becomes a fluid and intuitive experience. The tool eliminates reliance on traditional methods, such as email exchanges and the use of Excel files, in favor of a more integrated approach. Users can request quotations in a few clicks, track their shipments in real time, and access all relevant information in one place. This centralization of data and communications enables more efficient and transparent management, while reducing errors and delays.
Shiptify's interface is particularly noteworthy for its intuitive dashboard, which provides fast, personalized access to key information. Users can easily track a variety of Key Performance Indicators (KPIs), helping them to make informed decisions and continuously improve logistics management.
What's more, Shiptify's SaaS approach means that the software is constantly evolving and adapting to the changing needs of its customers. With regular updates and the introduction of new features, Shiptify is committed to offering an ever more comprehensive and advanced transport management solution, remaining at the forefront of innovation in the logistics and transport sector.
