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What Is a Transportation Management Software (TMS) System?

June 18, 2019 Anna Young

Cloud TMS Platform

Definition of Transportation Software (TMS)

A TMS is the software platform that companies use to manage their freight and logistics activities.

The TMS operates as a control tower for planning, executing, and optimizing the inbound and outbound freight shipments for a shipper, broker or third-party logistics company (3PL).

The transportation management system market has experienced exponential growth because of the ability for the software platform to help firms of every size optimize their logistics and supply chain strategy.

Utilizing a TMS pulls the shipping process under one module to increase efficiency, improve communication and save money. 

Some additional benefits for investing in the TMS include reduced freight costs, improved service levels and financial efficiencies to name a few.

The TMS market is expected to grow to be four times larger than its  current size, reaching $4.9 billion in sales between now and 2025.

The Gartner’s Magic Quadrant report ranks what the top TMS software market leaders are based on functionality, implementation, ease of doing business with the software company and leadership in pushing the technology envelope into the future.

For more on Transportation Management Software (TMS), check out these articles:

If you're ready to take the next step, at InTek Freight & Logistics, we can help. Just tell us what you need and we'll discuss how our expertise can help with the unique shipping challenges your business faces. Rather do a bit more research first? View our Freight Guides for comprehensive articles and eBooks on all things freight and logistics.

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