Transportation, along with manufacturing and warehousing, is one of the main supply chain management processes. It includes a whole range of operations like delivery planning, shipment tracking, shipping and distribution, cargo handling, last-mile delivery, freight management, route optimization, same-day delivery, third-party carrier services, inter-modal transportation, on-demand delivery, customs clearance, express courier services, freight services, and much more and every operation needs to be appropriately addressed.

Small businesses with few shipments can attend to these undertakings with the help of spreadsheets and phone calls. However, once your turnover evolves, it becomes apparent that Excel is not sufficient and you need something additional thing to control your transportation processes. That’s where specialized technology comes into play.

What is a Transportation Management System (TMS)?  

A transportation management system or TMS is a category of software that helps plan and execute the physical movement of goods. It can be used by all members of the supply chain from manufacturers to distributors and third-party logistics providers (3PLs) – virtually any party that wants to coordinate shipments.
Essentially, a TMS allows you to plan and execute your shipment processes and have visibility over them. Such software is often modular, meaning you can get different functions separately depending on your needs. Besides, your ecosystem of tools may consist of different modules of ERP, logistics management systems (LMSs), warehouse management systems (WMSs), and of course, TMS. Some features will interconnect with fleet management software as well.

What does the future hold?  

Freight volume like ocean freight, air freight, rail transportation, and trucking services, as well as the number of distribution centers, rate of international shipping, and container shipping, keeps growing every year, increasing the complexity and pressure on the logistic company.  While the industry is evolving to satisfy demand, adapt to customer requirements, and comply with regulations and sustainability goals, brands’ needs change as well. They strive for more automation, transparency, analytics, and foremost – digitization.
Shippers and carriers alike must abandon paper-based processes not only to compete but to survive. And it’s not that hard when the technology is here, offering efficient machine-to-machine communication, accurate routing algorithms, immediate mobile access, and a lot of other handy perks, thereby making cargo handling a breeze. As incredible as it may seem, there are still a lot of innovations available today that you can enhance your TMS with.
Predictive analytics powered by machine learning can support your strategic decision-making by generating accurate predictions and evaluating scenarios. You can apply it to evaluating carriers, defining high-risk loads, optimizing routes, planning capacity, and operations, and much more.
IoT devices hold a lot of potential to enhance numerous supply chain processes and provide unprecedented visibility. Smart-connected sensors can play a tremendous role in shipment tracking, fleet maintenance, storage monitoring, etc.
Blockchain technology, despite its novelty and related challenges, is being implemented to improve the traceability and security of logistics operations.
Solving The Problems With Exchanging Data
The most difficult problem to solve is streamlining data across multiple players in a single transaction. Using a typical ocean import container from China to Los Angeles as an example, the players are numerous — from the Chinese supplier, the Chinese motor carrier, the Chinese freight forwarder, the steamship line, the American trucker, the American customs broker, the American trucker and the American buyer. All these players exchange data like a baton in a relay race.
Each participant in the process contributes data to the string. The problem is collecting and reporting the data in a timely and streamlined manner. Blockchain is supposed to solve the equation, and it may well do so, but as of this writing, it’s still in its infancy.
Couldn’t the TMS of the future solve this problem by having the supplier in the origin country issue a universal code to be scanned at each handoff in the relay race? At each scan, the TMS data is updated and distributed to those who need to know.

Final thought  

The new era promises to ring in real differentiators like being able to handle domestic transportation in all modes for countries other than their own country. Once this occurs, the TMS products that now have freight payment components will be challenged to accommodate different currencies, banking, and payment protocols in each country. The advantages are huge, and the stakes are high. According to Technavio’s market research, the TMS market is expected to grow by $2.04 billion between 2020 and 2024, progressing at a compound annual growth rate (CAGR) of more than 8% during the same period.
As the world continues to get smaller, companies will no longer have to employ different substandard TMS products, the data from which needs to be consolidated in some sophisticated business intelligence (BI) tool for any meaningful career negotiation or strategic business decision to be made.
Technologies are evolving together with the transportation industry. So now, knowing the opportunities software provides, you can implement the right solutions to automate your business operations, offer better service to your customers, and gain a competitive advantage. At Acmo Networkwe develop software for you that enriches your experience and allows you to gain an advantage over your competitors.

In today’s modern technological world, logistics companies must have access to sophisticated technology to digitize the supply chain management and ultimately drive greater efficiency and reliability otherwise they won’t be able to match up to their speed with this fast-growing world and become obsolete.
Our company designs and develops certain software systems for your logistics company that will help them to automate a range of routine processes likesShipping and distribution, last-mile delivery, same-day delivery, third-party carrier services, procurement logistics, order fulfillment, handling several distribution centers, on-demand delivery, customs clearance, express courier services, track their goods, improve user experience, and increase your reliability, scalability, and efficiency. By combining the latest in technology with an unmatched knowledge of your needs, our team of experts deploys best-in-class practices across your network.

Types of software used in logistic companies:
1. Warehouse management system
2. Transportation management system
3. Supply chain management system
4. Asset management

All these are interlinked to each other and must work unanimously to make the company prosperous.

A transportation management system (TMS), is one of the software among four that automates the physical movement of goods that involves delivery planning, carrier management, and shipment tracking. All the stakeholders of a logistic company like manufacturers and distributors require TMS in one way or another.
TMS solutions can automatically choose a transportation company based on the cargo type, route length, and previous cooperation. Its functions include freight management, type of freights used like ocean freight, air freight, rail transportation, carrier rating, handling international shipping services, route, mode, and route optimization.
Let’s look at the benefits provided by TMS so that you won’t have any doubt while investing in it.

Order management  

In a TMS, order information is accessed by all related parties from planners to drivers and customers. It assists users to view and manage transport requests.
First of all the essential details like commodity or weight and setting up current location and destination are filled by TMS. A system often automatically generates a route and assigns transport and driver.
Then, created orders with their routes and assigned transports are available to order planners and drivers on a dashboard that allows them to see their workload for the day. All documents are also automatically linked to their corresponding orders so the driver can keep them on their smartphone or tablet. As drivers update the status of orders en route, planners have an overview of all scheduling changes and truck locations.

Route mapping  

It creates an optimal route for carriers with significant fuel economy which will eventually cut down fuel expenses and accelerate your freight line. With TMS, you can track the fleet’s position, load level, and equipment condition. We can help you make transportation more profitable and safer for drivers.

Dock scheduling  

Shippers spend most of their time scheduling dock appointments and truck drivers waste time waiting in line for their turn. Integrating with a WMS allows a TMS to include dock scheduling and load sequencing in the transportation plan. You will have an overview of all warehouse and transportation constraints and can make more accurate schedules, apply your business rules and rules of every location, and always have a load status available to you or customers.

Data management  

A transportation management system manages all a company’s logistic data in one place. With route information, transportation costs, and other data points being input into one platform, you can pull a plethora of data reports to monitor critical metrics impacting your business. Managers can then use this information to make efficiency changes, route adjustments, and implement new procedures to improve business. 

Enhance customer service  

Customers have high expectations for package shipments these days. They want fast delivery, damage-free packages, and reliable tracking details. Many companies struggle to meet customer demands for package transportation, but a transportation management system changes all of that. Through a TMS, you can review the cost-efficiency of various carrier services and the frequency of on-time delivery. Monitoring this information will help you select the most reliable and efficient carriers for your products. The TMS can also let customers know when their order is shipped, and it will provide tracking information. All of this information lets customers know when to expect their packages. 

You can digitize all paperwork  

Companies have to handle a lot of paperwork in their day-to-day lives. Most of them have developed systems for the flow of documentation and feel comfortable with their process. However, there are downsides to only working in paper documentation, it’s messy, hard to keep organized, requires storage, and can lead to all sorts of delays and disputes if it’s not handled promptly.
An advantage of a transportation management system is that while it can’t eliminate paperwork, it can automate most of the associated tasks and keep things organized in one central location. Some programs automatically collect and store up-to-date insurance documentation from truckers, relieving you of the responsibility. Additionally, load slips can be created and kept as digital copies, invoice processing can be consolidated, and payroll can be automated. Such features can remove the majority of complications that come with traditional paperwork.

Negotiate contracts with ease  

A transportation management system allows you to compare freight rates between carriers quickly. It can even help you negotiate contracts through detailed comparisons. The system will also compile all contract details, from rates and quantity commitments to supplementary charges. 
It can also let you know if there is a certain number of transactions that will push you into a new savings category with the freight carrier.  Easy access to comparable carrier information helps you select the best carriers and suppliers for your business while maximizing cost savings in the process.

Outcome  

If you want to plan and execute your shipment processes and have visibility over them, you must invest in TMS. Transportation management systems facilitate the shipping process and make it easier for businesses to manage and optimize their transportation operations, whether they are by land, air, or sea.