What is a transportation management system (TMS)?

When does the question of what a transportation management system becomes relevant?

Lately, we've been getting emails asking, "What is a Transportation Management System (TMS)?" The owner-operators and small trucking companies mainly set it. And this is not surprising. After all, the question of transportation management system is faced is when systematization and streamlining of the company's main operational processes are required. New, young companies, having worked for some time in the trucking industry, are aware of the need to move the company to a new level of management.

What exactly is a transportation management system?

There are many definitions of what a transportation management system is. But they all boil down to the fact that the transportation management system is a logistics platform, specialized software that helps the company streamline the main operational processes in the provision of freight services and is an integral part of the larger supply chain.

To better understand what TMS is, we should talk about its benefits. The main advantages of TMS are:

  • automating the management processes of a trucking company
  • reducing operating costs
  • reducing paperwork
  • increasing the company's income

Not the best transportation management system.

To learn more about the benefits of a transportation management system, see our article "What are a transportation management system benefits?"