On the road to optimized transport management with computerized TMS
What is a TMS?
" Transportation Management System " refers to software designed to manage the transportation of goods. And in a globalized, demanding economic ecosystem, where logistics challenges are multiplying, it's easy to see why this type of device is of growing interest to companies in search of greater efficiency.
Is the TMS right for you?
Definition, benefits, features... focus today on this magical tool that will make your supply chain a real value driver 🤩.
What is a computerized TMS?
TMS software: definition
TMS, an acronym for Transportation Management System, defines a type of software that supports companies in the organization of their logistics, i.e. the circulation of their incoming and outgoing goods.
Basically, it helps to plan, optimize and monitor transport operations.
There are two categories of TMS:
- Loader TMSs: here, transport is not the company's core business, even though it may ship and/or receive large quantities of products. It therefore uses the tool to improve its logistics processes;
- TMS for transport companies: these are organizations more focused on transport (road haulage, delivery companies, etc.), which provide other professionals with services in this area.
💡 The TMS can be integrated more globally into a supply chain management platform.
How does the TMS work?
Obviously, each solution has its own specific features, adapted to its target market.
However, it can be said that the overall functioning of a TMS is as follows:
- Gathering information: the software begins by collecting all key data, such as customer orders, available stocks, warehouse locations, information on available carriers, and so on.
- Planning shipping modes and routes: using this data, the TMS selects the most suitable mode of transport and draws up routes, taking into account factors such as distance, estimated journey time, transport costs and regulatory constraints.
- Vehicle allocation: it then allocates appropriate vehicles and drivers according to the criteria observed above.
- Real-time tracking : TMS-integrated GPS systems enable real-time tracking of transport progress. This enables companies to react quickly to any problems that may arise.
- Document management: most Transport Management Systems manage the documentation associated with shipments, including delivery notes.
Why use a TMS? 4 key benefits
#1 Greater efficiency
Transport management is often a complex task, especially in today's globalized economy. What's more, consumers are becoming increasingly demanding when it comes to receiving their orders.
A computerized TMS streamlines the entire process, improving efficiency and enhancing customer satisfaction.
What's more, this gain in efficiency (route optimization, for example) generates a positive impact on costs 🤑 !
# 2 More visibility
As the supply chain becomes more complex, so too does the lack of visibility needed to coordinate operations and spot anomalies as early as possible.
Thanks to TMS software, you're aware in real time of what's going on in your freight transport (tracking shipments, routes, detecting any delays, etc.), and make the right decisions more quickly.
#3 Better decision-making
Another major advantage of TMSs is that they help companies engage in a continuous improvement process.
In fact, they usually include analytical tools for measuring performance and identifying trends.
In other words, with Transport Management Systems, you have reliable information with which to optimize your processes.
#4 Compliance with current regulations
Last but not least, TMS software makes it easier to comply with various regulations, by integrating the multiple constraints linked to transport, such as those relating to drivers' hours.
The software also facilitates compliance with the company's commercial policies, taking into account pricing, delivery and order processing rules.
In short, with a Transport Management System, you can avoid costly errors!
Who uses computerized TMS?
Computerized TMSs are used by companies that need to receive and dispatch goods on a regular basis.
These may include
- manufacturers and industrial companies
- distributors and retailers,
- e-commerce companies,
- transport companies,
- logistics service providers.
☝️ And even small organizations are now using TMSs! Thanks to the development of a more accessible cloud-based offering, they too can benefit from the many advantages promised by these platforms.
Key TMS functionalities
As we have seen, TMS functionalities vary from one solution to another. But here are the main ones 👉.
Transport planning
First and foremost, a TMS is very useful for planning the shipment of your goods.
All you have to do is select the most suitable carrier from among several, taking into account various criteria:
- costs,
- lead times
- routes,
- quality of service,
- regulatory constraints,
- safety, etc.
Real-time tracking
With GPS tracking, you can keep an eye in real time on your vehicles' position, speed, stops and delays.
In short, you get complete visibility of the progress of your shipments.
Load management
Another key TMS functionality is vehicle load optimization.
More concretely, the software maximizes vehicle capacity while respecting weight and volume limits. In particular, it takes into account the dimensions and characteristics of the goods to be transported.
Order management
The TMS can also manage the entire order process, from collection to shipment preparation, all with a view to reducing transport costs.
Documentation and invoicing
Most Transport Management Systems are capable of automatically generating documents, such as delivery notes and invoices, based on shipment data.
Dashboards and analyses
Finally, let's not forget that the TMS is not just a simple steering device: it's also a powerful strategic tool!
That's why it often includes dashboards and other reports, providing a complete overview of your supply chain's performance.
This enables you to pinpoint any shortcomings, and thus the processes you need to improve (remember, the TMS helps you to adopt a continuous improvement approach!).
How do I choose my TMS software?
TMS can exist on their own, or as a module integrated into a more global software package, in particular ERP (Enterprise Resource Planning) and WMS (Warehouse Management System).
In all cases, a number of criteria need to be taken into account when choosing the most appropriate tool.
Let's take a closer look at what questions to ask yourself 👉.
What do you really need?
As we've seen, TMS offer a wide range of functional coverage.
So it's important to identify in advance the procedures you want to automate, in order to draw up a list of all the essential functionalities.
☝️ It is also possible to choose a solution that has been developed specifically for your business. For example, if you operate in the pharmaceutical or food sectors, your TMS needs to take account of cold chain constraints.
Cloud or not cloud?
As with any software, you need to ask yourself whether your TMS should be hosted in the cloud or on-premise.
Note, however, that the first option promises definite advantages:
- lower deployment and hosting costs;
- much faster implementation of the software within the organization;
- no updates to carry out on your own;
- a flexible billing system, often in the form of a monthly subscription, which adapts to your needs.
☝️ However, some companies prefer the on-premise system. This guarantees greater control over the system (including security and updates) and flexibility when it comes to aligning the TMS with specific needs.
Other criteria to consider
- ✅ The quality of the publisher's support, both when the platform is deployed and throughout its use, particularly in the event of problems;
- ✅ The integration of the TMS with your other software (e.g. ERP), to ensure a smooth flow of data;
- ✅ Ease of use, a sine qua non for user adoption;
- ✅ Scalability of the solution, so that it can continue to effectively manage your activities even if you experience strong growth;
- ✅ The return on investment promised by the TMS. It has to be as profitable and value-adding as possible!
👉 Example of a transport TMS:
There are many TMS on the market, and by observing all the criteria set out above, you're bound to find one that's right for you.
One example is Shiptify, a transport and dock management solution designed for small and medium-sized businesses and large groups. This comprehensive solution centralizes all the functions expected of a good TMS: Easy to deploy and use on a day-to-day basis, it goes even further by integrating dock management and warehouse appointment scheduling services.
TMS computerized: we summarize!
Over the years, computerized TMS has become indispensable for any company wishing to optimize its transport management, whatever its sector of activity. Thanks to this kind of system, professionals are able to improve the efficiency of their operations, and at the same time boost customer satisfaction and cut costs!
While these software packages offer a wide range of functions, from transport planning and load management to dashboards and analyses, each organization needs to find the solution that suits it best. To do this, they need to sound out their needs in advance, with a view to finding THE TMS that will lead them, at speed, onto the highway to success 🛣️.
Article translated from French