Components of a good TMS (Transportation Management System)
Good organisation and quick data exchange are critical in the logistics industry. That is why modern software, which makes it easier for drivers, warehousemen and other employees to perform their everyday duties, is so useful. We will explain to you what the popular TMS is and what components it includes!
What is the TMS (Transportation Management System)?
TMS stands for Transportation Management System. It is a logistics platform that uses modern software to support the planning and performance of processes connected with the transfer and storage of goods. Often, it is a part of the larger supply chain management system.
TMS facilitates communication and data exchange, enables the monitoring of daily logistics operations and helps to plan and manage warehouse and transport activities. It can be used to accelerate or even automate many formal processes connected with, for instance, the preparation of the necessary documents.
Such solutions are used by businesses such as:
- transport, delivery and courier companies,
- manufacturers,
- distributors,
- e-commerce businesses,
- companies providing other logistics services.
What are the components of TMS?
There are many more or less extensive TMSs available. That is because a TMS is not, in fact, a single program but a modular platform combining the functions of multiple tools. It usually includes the following components:
- ERP (Enterprise Resources Planning), i.e. a system used to plan the resources of an enterprise – accounting, orders, invoices and allocation of tasks, etc.;
- WMS (Warehouse Management Software), i.e. a system for warehouse management, order processing, receiving and issuing goods, etc.;
- transport and logistics management modules – management and monitoring of freight charges and route optimisation, driver monitoring, etc.
A good TMS can make running your business a lot easier. It improves work organisation and service quality and reduces costs.