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What Is TMS in Transportation?

November 7, 2022 Kevin Baxter

Laptop TMS

TMS is a three-letter initialism used quite often in freight and logistics, with good reason, but what does it stand for?

  • T - Transportation
  • M - Management
  • S - System

A TMS in transportation is a software platform - commonly cloud-based these days - that companies involved in the shipping industry use to manage practically all their day-to-day activities. TMS software works for companies of any size, allowing users to optimize their entire operation. TMS solutions serve as a one-stop shop for transportation planning, execution, tracking and transaction-management - allowing for better efficiency, improved communication and even cost-savings. This is accomplished not only with a strong base system, like one of the top TMS software packages available today, but with their ability to be customized with more features tailored to the user's needs, creating a well-oiled, integrated TMS machine. In fact, one of the best ways to get the most out of a TMS for a shipper is by leveraging a third-party logistics provider's (3PL's) integrated transportation software solution for a smooth, feature-rich implementation.

Who uses TMS software?

TMS software is powerful and customizable enough to offer solutions to just about anyone involved in freight and logistics. Companies large to small - representing shippers, carriers, freight brokers and 3PLs - are all (or can all be) users of TMS software. Among the functions a TMS can offer to save money and increase return on investment (ROI) for users are:

  • Shipment analysis - rates and constraints
  • Automated execution and advanced visibility (rates, capacity, routing guides and performance management)
  • Self-billing and freight audit & pay
  • Reduced broker dependencies
  • Maintanable, durable rates/capacity

While the idea of switching an operation - however large or small - over to a TMS may sound daunting, a partner with the right expertise and certification can make implementation easy. At InTek, we work with one of the leading TMS platforms in MercuryGate as a certified value added reseller and partner. If you're looking for TMS help, let us know, and we'll be happy to offer our expertise to answer questions or get you started. Looking for more information? Visit our Resources page for more on freight and logistics - and us. Or start with one of the links below: 

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