What is Transport Management System?


Created on February 26, 2021

Transport management, an integral part of logistics, deals with the physical movement of goods from one place to another through land, air, or sea. Be it retail, e-commerce, manufacturing, or courier & parcel, managing the transportation operations efficiently is the essential for every industry. A decade ago, transport operations were used to be managed manually, but the rising customers’ expectation and changing supply chain trends has made it necessary to opt for an automated transport management system or transport management software. Another popular reason behind the growing need for TMS is that it helps in streamlining transport operations, reducing the overall cost, and complete processes with less manpower.

Why does any business need a transport management system?

As aforementioned, every business needs TMS software to run their transportation operations smoothly and cost-effectively. Even a single hiccup in the transportation processes directly affect planning & procurement of goods, their transportation, and delivery to the customers’ place. An efficient TMS helps in overcoming problems like:

Challenges you can overcome by using transport management system
  • Managing multiple orders efficiently
  • Utilizing fleet capacity completely
  • Planning delivery routes manually
  • Tracking shipments in real-time
  • Managing other last-mile operations
  • Reducing the overall transport cost
  • Providing visibility to the end-customers
  • Delivering orders on-time
Features of transport management system

Here are some of the key features of that should be there in a transport management software-

Automated order allocation

To categorize the products based on their size, volume, type, and delivery location. Doing this manually requires huge time and efforts.

Finding vehicle and assigning drivers

From finding the right vehicle to utilizing its capacity completely, the TMS should be capable of doing this automatically. It should also be able to choose the driver considering their performance, driving hours, experience, and other parameters.

Automated route optimization

The software should also have the feature to plan and optimize delivery routes. It should also include dynamic route planning features so that riders can get new routes in case there is some problem in the route or any customer cancels or modify the order delivery.

Rider management

The TMS should provide means to manage all riders. It should also provide a dedicated panel or application to the riders so that they can manage every trip and check out particular delivery preferences of the customers.

Digitized proof of delivery

The TMS should include features to collect and upload the proof of delivery through the app.

Options for the end-customers

Customer satisfaction is the prime goal of every business. Providing delivery-related options to the customers can help in achieving the same. Therefore, the TMS should offer features like reschedule delivery, real-time tracking, share delivery feedback, and check delivery ETA for the end-customers.

Reports and analytics

The TMS should provide means to generate various reports to manage drivers’ performance, check delivery status, and more to improve the processes.

Besides the aforementioned ones, there are many other features that might be there in transportation management system software. In fact, some of the transport software providers can also add exclusive features as per your business needs. You can ask the company for that.

Which type of industry uses transport management systems?

Every industry that involves the transportation of goods from warehouse to the customers’ doorsteps, one warehouse to another, or one transportation hub to another require a transport management software. To find the best transport management software for your business, all you need to do is to search the software by typing keywords like-

  • Transport management software for retail company
  • Transport software for manufacturing company
  • Transport management system for courier and parcel delivery
  • Transport management software for e-commerce company
  • Transport software for large retailers
  • TMS for distributors
Benefits of transport management system

TMS software renders a plethora of advantages only when you choose the right one. Therefore, the first thing you need to ensure is to choose the best transport software with which we are going to help you (Read the sections mentioned below). Here are some of the benefits of TMS-

  • Reduced fuel cost, operational cost, and hence, overall transportation cost
  • Transport operations management with less manpower and in less time
  • Automated route planning and management
  • Effortless last-mile delivery management
  • Clear communication with riders, vendors, and end-customers
  • Contactless delivery and cashless payment option for customers
  • COD payment calculation
How does a transport management system work?

There is a systematic process every TMS follows to streamline the procurement and shipment of goods. After the integration with existing SAP/ERP systems, the TMS looks into new order and segregates them on the basis of given parameters. It then finds out the vehicle and drivers for the delivery. The software also connects with the warehouse management to ensure the timely pickup, AWB generation, printing labels, and conduct other tasks. It generates the most efficient routes for delivery, sends delivery-related alerts to the end-customers, and provides the riders with options to manage their trips.

Which transport management system is best for your business?

Which type of transport management software is best for my business? Is this the question in your mind? Well, you can either choose to develop TMS by contacting a software development company. However, the software development process may take months or years. An alternative to this is to choose a SaaS-based transport management software that can be deployed over the cloud. It would take only a few days, maybe hours, to make the software ready for your business.

An important thing you should keep in mind is to ask for the customization. For this, provide the transport management software with your specific business requirements. The company will integrate the features of TMS accordingly. If you don’t want to spend hours on searching such software on the internet, then just reach out to Shipsy. It’s a trusted SaaS-based software suite provider known for extending customized transport management system in India, Middle East, and other regions.

Final Words

Almost all types of businesses involve movement of goods from one place to another. Logistics and transportation is the segment that makes transportation possible. Having an efficient transportation management system software not only streamlines and automates transport-related activities but also minimizes the cost, time, and efforts. If you are curious to know more about the software for transportation management system, then give this article a read. You will find answers to all your transportation management software related questions. 



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