What Is Transport Management Software?
Transport management software (TMS) centralizes the management of delivery-related information to achieve efficient dispatch and delivery of goods. It optimizes delivery plans considering various destinations and bases, allowing for real-time tracking of vehicle locations.
As logistics volumes expand, the need for more efficient transportation operations—such as optimal truck allocation and delivery cost reduction—becomes critical. TMS offers a comprehensive solution by managing all transportation and delivery operations within a unified system.
Typically part of a logistics management system, TMS works in conjunction with warehouse management systems (WMS) to streamline the entire logistics process.
Uses of Transport Management Software
TMS aims to enhance delivery efficiency by consolidating transportation and delivery tasks. It addresses the growing need for more effective delivery operations amid increasing logistics volume and driver shortages. By generating optimal dispatch plans and managing loads and routes, TMS reduces logistics costs and worker workload.
Principles of Transport Management Software
Key functionalities of TMS include:
1. Dispatch Management
It generates optimal delivery plans by considering factors such as destinations, product costs, and available vehicles, improving route efficiency.
2. Transportation and Delivery Management
Real-time GPS tracking of vehicles and products provides current delivery statuses and estimated arrival times.
3. Transportation Cost Calculation
The system calculates all transportation-related costs, including wages and fees.
4. Performance Management
Automatically generates driving reports and records, managing driving behavior and contributing to operational improvements.
5. Vehicle Management
Manages fleet-related operations, including vehicle lease statuses and associated expenses.
TMS offers flexibility to handle non-routine tasks and adapt to unforeseen challenges such as traffic congestion.
How to Select Transport Management Software
Key considerations when choosing a TMS include:
1. Functionality
Ensure the system meets your specific shipping operation needs. Focus on functionalities crucial to your business, like delivery planning and customer information management.
2. Customizability and Linkage
The system should be customizable to fit your business requirements and capable of integrating with existing systems, enhancing overall functionality.
3. Operability
Confirm the software’s ease of use, ensuring an intuitive user interface that minimizes errors across all user levels, from experienced staff to newcomers.