A TMS (transport management system) is a transport management software that allows companies to automate their logistics processes to improve their efficiency.

Using a TMS not only helps us to make transportation more efficient, but also, depending on the software, to make it an intelligent transportation, which optimizes routes in a predictive way, controls parcels, and provides us with metrics and key indicators. In addition, these systems also contribute to making transportation more sustainable, since optimizing routes reduces fuel consumption, and therefore CO2 emissions.

As with other logistics and transport software, the first thing we must ask of this type of system is that it be flexible, that is, that its functionalities can be adapted to the specific needs of our company. However, there are some functionalities that are usually common:

• Real-time information, overall, for all transport routes, or for a specific order. It is essential that the TMS allows us to control the transport status of the goods.
• Synchronization, which means, being able to coordinate transport with the warehouse, with the supplying logistics company and with the recipient of the goods, be it an intermediary customer or the end customer.
• Traceability is essential in logistics.
• Optimization of transport routes, both globally and specifically for each carrier, especially if there are incidents in the routes that were initially defined.

Transportation and logistics software is essential to correctly manage the complexity of today’s supply chain, and to optimize transportation, especially in the so-called “last mile”, a critical point where most supply chain costs and errors are concentrated. Therefore, the main advantages of using a transport and logistics software are:

• The entire logistics process is streamlined, from warehouse collection, delivery routes, and even reverse logistics processes.
• Accurate, real-time information on the entire supply chain (traceability).
• Better integration with suppliers, clients, and final customers.
• Reduction of errors due to manual process or non-automated processes.
• Cost reduction.
• Increased customer satisfaction.

Nowadays, every company must be clear about its needs and requirements when choosing a software, since the market offers an infinite number of solutions. The main criteria to consider are the following:

• Choose a specific software for transport companies. Generic software that are then adapted by sector or company, end up not responding in the same way, so it is better to choose a supplier that develops software for our sector.
• Integration is essential, both with other internal invoicing and accounting programs, as well as with third-party and external programs, such as the warehouse network.
• We must make sure that the supplier company has a good support team to help us with the implementation as well as with training and support in case of any incident, and that they carry out periodic updates.
• The program should be flexible and scalable, to meet both our current needs and those we may have in the medium and long term.

Transport companies operate in an increasingly complex industry, both due to the increase in online orders and the oversaturation of the transport routes themselves, as well as the stress on the global supply chain. As a result, they need tools that enable them to optimize their processes, especially with regard to the speed and efficiency of transport routes.

With a program for carriers, companies can optimize their routes to make them faster, both in planning and in the search for alternatives to incidents, they can automate tasks to gain speed and minimize errors, such as email delivery of proof of receipt of goods, and improve communication between the parties involved, with better traceability of the goods. In addition, route optimization also helps to reduce fuel consumption.

Each company has different requirements, depending on its size, the sector in which it operates (urban transport, refrigerated goods transport, international transport…).
However, there are some considerations that are common to all companies:

• Traceability: today, no transport company can value a software that does not offer accurate and real-time traceability of goods.
• The calculation and optimization of the route for the transport, is usually another of the most demanded functionalities.
• Automatic notifications, to be aware of information that interest us, without the need to enter into the application every moment.
• Flexibility, it means, we can adapt the app’s functionalities to the specific needs of our company. In addition to the first three, each logistics company may have different requirements, and the application must be able to respond to them.

A TMS or Transport Management System contributes to improve transport management in different ways:

• It reduces delivery times by optimizing transport routes.
• It reduces transport costs: fuel, need for less fleet…
• Centralizes information to gain efficiency in daily management.
• Improves urban logistics, one of the most complex and time-consuming.
• It integrates to control and optimize billing, and especially the extra costs associated with the service.

WMS or logistics management software is only necessary for a transport company if it has its own storage space. So, what are the advantages of using a WMS?

• You gain in speed, especially in the planning and optimization of transport routes.
• There is complete traceability of the goods, especially in the “last mile” and reverse logistics, two critical points for transport companies.
• Improved communication between the different integrates of the supply chain.
• Reduction of errors, and therefore the costs associated with these errors and delays…
• Increased end-customer satisfaction.

Nowadays, transport software can have an infinite number of functionalities. However, there are some common ones that should be taken into account when deciding on one TMS or another, for example:

• Capacity to manage shipments.
• Integration with the transport agency, warehouse and/or logistics company, as well as integration with internal systems such as invoicing.
• Traceability: Tracking of shipments and access to proof of delivery.
• Scalability: the program must have the ability to adapt in the short, medium, and long term to our specific needs.