Transportation Management System
What is a Transportation Management System?
A Transportation Management System (TMS), also referred to as a TMS logistics system or simply transportation management systems, is an application platform supporting the planning and control process (logistical, economic, and environmental impact) of transporting materials in and out of the company’s supply chain nodes. Understanding what is a TMS is crucial for businesses aiming to enhance logistical efficiency and achieve cost-effective operations.
An efficient transportation management system (TMS), natively integrated with Production Planning and Supply Chain systems, is an enabling factor for the overall efficiency of the company’s Supply Chain and the level of service guaranteed to the market.
What does a TMS do?
A transportation management system is designed to assist in the planning, implementing and optimising the transport of goods, both incoming and outgoing, while ensuring compliance with legal regulations and accurate documentation management.
According to sedApta The main objectives of a TMS logistics solution are optimising the cost and service level to the market, timely tracking information to support planning (intercepting and managing exceptions while minimising the impact of delays), and controlling and optimising the carbon footprint to help meet sustainability requirements
How does transport logistics work?
TMS owners and users
As we at sedApta are well aware, recent demands have developed new consumption models directly involving the logistics sector. Demand variability, compression of sales times, delivery traceability, and integration within the Supply Chain have driven the Transport Management (TM) segment, refining the concept of the extended Supply Chain. The response to these needs is encapsulated in the NextRoute solution.
Transport management systems find their purpose in a wide range of companies, and the need to effectively manage the movement of goods is a fundamental requirement. In the past, the primary users of TMS transportation management systems software were companies with significant shipping issues and expenses. Today, with the advent of cloud-based transportation management system software, even small businesses can access the benefits of transport management systems, making their supply chain more efficient and competitive.
Transport management system TMS solutions are now vital in ensuring success across various sectors by addressing the following key user groups:
- Manufacturers: Companies that need to ship finished products to other companies, distributors, or directly to consumers.
- Distributors: Businesses handling large quantities of goods, acting as intermediaries between manufacturers and retail outlets or end consumers.
- E-commerce companies: Businesses requiring efficient systems to manage fast and reliable shipments.
- Retail stores and chains: Constantly receiving products for display and sale.
- Logistic Service Providers (LSPs): Companies specializing in third-party logistics management, requiring advanced tools to coordinate material handling (logistics and transport) operations for various clients.
In an ever-evolving world of global commerce, having a system that facilitates real-time goods traceability, allowing for more efficient and effective control over production planning, is more essential than ever.
sedApta Next Generation of TMS Solution
Managing a transportation company
TMS services
The solution that sedApta proposes to address and solve the current needs of companies is the result of integration and collaboration with the innovative start-up of the Group dedicated to Supply Chain and TMS logistics Execution, NextChain. The innovative strength of the solution stems primarily from an in-depth knowledge of advanced transportation management systems (TMS) processes, thanks to the experience of the key people involved in the initiative, which allows the enormous potential offered by cutting-edge technologies to be translated into innovative solutions.
With Big Data management tools that enable real-time translation of vast amounts of data into synthesised information to support complex decision-making processes and moving through Artificial Intelligence and Machine Learning systems that automate entire process components, execution speed is aligned with the demands of an increasingly real-time market.
To assist clients in digital transformation, each component is complemented by the O.S.A.+ (Orchestrator – Skillaware – Analytics) platform, an accurate simulation Control Tower capable of integrating various business processes and synchronising people. It is highly flexible and can easily manage exceptions, generating real-time alerts, discussions, and dashboards that combine information from different departments (TMS logistics, production, quality, and maintenance). An environment where simulations can be prepared, launched, and analysed, evaluating alternative scenarios and quickly supporting the decision-making process in an end-to-end logic.
Transportation Management System Services
- Planning and Scheduling: An effective transport management system UK helps companies select the most appropriate shipping method and carrier, considering factors such as cost, type of goods to be transported, distance, time, and carbon footprint. This includes optimizing multi-stop routes and ensuring total visibility at every stage of the supply chain.
- Operational Management and Communication: This covers functions such as load matching, interaction with carriers, documentation management, and shipment tracking. Advanced systems like sedApta NextChain offer real-time tracking and localization services. Additionally, the system manages legal and fiscal documentation related to transportation.
- Data Analysis and Optimization: Features offered by a goods transport management system include performance evaluation, detailed reporting, dashboards, in-depth analyses, and industry-specific intelligence. Integration with ERP and EWM solutions allows for sophisticated data analysis and optimization of transportation processes.
Optimising transportation
Benefits of a TMS system
Adopting a modern Transportation Management System (TMS) offers companies a series of significant advantages, resulting in an overall improvement in supply chain efficiency, production planning and control, and, therefore, customer satisfaction. For those wondering, what is a TMS, it’s a solution that streamlines the movement of goods, improves operational efficiency, and reduces costs.
Key benefits include:
- Cost Reduction: A TMS transportation management system can help reduce shipping costs for the company and the customer by optimising transportation modes and routes.
- Process Simplification: It facilitates and streamlines supply chain management across different regions, transportation modes, and carriers, making processes smoother and less complex.
- Business Operations Automation: It improves efficiency in documentation management, reducing errors and speeding up processes.
- Increased Visibility and Security: A robust TMS system offers tighter control and greater security while transporting goods.
- Reduction of Reaction Times: It allows quick responses to external disruptions, enabling new planning to minimise the impact on the supply chain and production processes.
- Improved Reporting: The total integration and sharing of business data facilitates analyses for quicker responses and continuous process improvements, leading to new business insights, even through the use of AI (Artificial Intelligence) tools and machine learning algorithms.
- Real-Time Updates: A TMS logistics solution enhances customer service and satisfaction thanks to fewer shipping delays and up-to-date information.
- Business Growth: It supports the company’s growth by meeting and exceeding consumer expectations for fast and timely deliveries.
In summary, a transportation management system not only optimizes transportation and logistics management but also acts as a distinctive element for operational efficiency, cost reduction, and increased customer satisfaction. It pays particular attention to sustainability issues and needs, which are crucial elements for success in today’s competitive market.
sedApta Next Generation of TMS Solution
The Next Generation Supply Chain scenario integrates advanced management processes in logistics and transportation, addressing challenges such as compressed execution times and order traceability in advanced transportation management systems. Features include:
Smart Tracking
Automatic updates through connections with transport services and cloud platforms.
Multi-Tenant Collaborative Platform
Simplifies Freight Service Provider integration, from booking to check-in, across all logistical and economic phases.
Rate Management System
Supports service provider selection algorithms and cost simulations.
Green Shipping
Calculates CO2 emissions based on shipping method, route, fuel type, and volume.
By leveraging tools like the NextRoute platform and comprehensive planning and execution features, automated transportation management systems empower businesses to stay competitive, efficient, and sustainable in today’s fast-paced market.
Related Products
About Supply Chain Execution
Operational Efficiency in Supply Chain Execution
Effective operational management of the supply chain enables companies to respond quickly to change, ensuring transparency, real-time information, and integrated processes. The result: smoother, higher-performing operations that remain fully under control.