Logistics management software

What is TMS software in logistics?

What is TMS software? A transport management system is software that helps logistics businesses optimize the flow of goods from suppliers to customers.

Recent estimates predict that the global supply chain will grow by 11.12% from its current market value of $15 billion by 2027. Unfortunately, most logistics, delivery, and trucking business owners will be left out of this boom due to outdated business management tools. If your logistics business is struggling to keep tabs on supply chain management procedures, it’s time to consider getting TMS supply chain management software.

What Is TMS?

A transport management system (TMS) is an automated system that permits logistics businesses to plan, execute and enhance the flow of goods from the suppliers to the delivery points. Essentially, TMS smoothens the operation, ensuring that the shipment is compliant, well documented, and in an appropriate shipping environment.

How Does TMS Work?

TMS automates processes within a logistics business or company. The system provides an online infrastructure that relays on-time communications between different players in the logistics system. It leverages internet connectivity to obtain real-time data and determine the appropriate actions based on the information obtained from the processed data.

The system achieves these objectives by following a set of step-wise processes as listed below:

Planning and decision-making

TMS collects data and business insights from various sources and categorizes them into the desired dashboard for better operational visibility. This data streamlines the decision-making process as the information is orderly and easy to interpret. 

For example, a robust TMS will highlight shorter routes to the destination and select routes with less traffic, reducing the time wasted on the road and ultimately saving transport costs.

Planning automation

A TMS also automates important logistic functionalities such as dispatching, carrier rate acceptance, and delivery times, which are essential in making transport strategies and plans. The system can provide well-analyzed alternatives to manual processes, making your operations more manageable and efficient.


The vehicle tracking function is perhaps the most powerful function of a TMS. Businesses can now track and keep close visibility on the shipping process, providing an on-time response system in emergencies such as vehicle breakdowns, bad weather, and accidents. Visibility also eases the process of invoicing, bookings, and customs clearances.


Quantifying the logistics processes was initially a hill climb for most companies as it involved a lot of paperwork. However, with a TMS, you can now track the progress of your Key Performance Indicators (KPI) on time. This simplification allows logistics managers to keep track of their business performance and their goal achievement processes.

This function of transport management systems creates a crucial connection between the supply chain and enterprise resource planning.

What are the Benefits of Using a TMS software?

Here is what an efficient TMS software will bring to your business:

Maximize delivery efficiency

Imagine being able to track your goods from start to your customer's doorstep. That's the efficiency of TMS.

Ultimately, the technology minimizes the room for human error, such as shipment to the wrong address, which was common before its introduction.

For a logistics business, keeping tabs on your drivers allows you to monitor their performance in terms of road speed, stops, fuel consumption and utilization. This not only enhances driver accountability but also gives you insights into ways through which you can improve your logistics processes.

Increase customer satisfaction

Every customer would like to be updated on the shipment progress of their items, many of which are time-sensitive. TMS software facilitates on-time updates on the shipment progress and alerts the managers and customers in case of unexpected delays.

TMS also details the customers' shopping and shipping habits that your business can leverage to enhance customer experience. Remember, a satisfied customer will leave a good business review, refer your services to their connections, or become a repeat customer, hence focusing on customer satisfaction is crucial.

Reduce running costs

Acquiring a TMS software for your logistics business will significantly reduce running costs in different ways. Firstly, automated processes will eliminate hiring extra office staff to deal with paperwork as a few people can centrally operate the system. Additionally, the system generates important feedback data which you can use to enhance your logistics processes. For example, this feedback could be fuel consumption, driver inefficiency, or better delivery routes.

Facilitates Automation Technology

Automation eradicates the cumbersome paperwork and reduces the demand for extra workforce, which reduces wage costs. TMS further simplifies different processes in logistics, such as the acquisition of clearance signatures from different physical sources, which wastes much time. 

What are the features of a good TMS software?

Live tracking

TMS provides real-time connectivity between your business, suppliers, and consumers. Within your company, the technology allows you to track the entire shipment progress of every customer. This enhances the transparency and efficiency of the shipping processes, reducing transportation costs.

Route Optimization

TMS software provides objective time route optimization to drivers, advising them on shorter routes, traffic, and weather updates. This enables drivers to make informed decisions during their delivery processes. The system also saves this information and uses it to provide better shipment analysis.

Delivery Management

A TMS enhances visibility within the supply chain for drivers, vehicles, equipment, etc. making delivery management seamless and free of errors. It also provides real-time data on all packages on the road, customer feedback, and new requests simplifying the logistics processes while using fewer resources.

Accounting and Billing Features

Gone are the days when logistics companies spend so much time and human resources on accounting and billing processes. Instead, TMS software has built-in ledger systems that handle invoicing and auditing tasks in seconds.

In a nutshell, TMS simplifies logistical processes. If well implemented, the system can significantly reduce running costs, enhance efficiency and raise customer satisfaction. 

FleetRunnr Offers Tailored Logistics Solutions

FleetRunnr is the best TMS software designed for SMBs. FleetRunnr manages everything from first mile to middle mile to last mile. We built FleetRunnr with your business in mind to be intuitive and easy to use.

Try FleetRunnr today and see how it can benefit your business by getting started now for free.

Similar posts

Get notified about upcoming stories

Be the first to know about new logistics management insights to build or refine your fleet management strategy with the tools and knowledge of today’s industry.