Transport Management

Transport Management

A transportation management system is a software system that helps companies manage logistics associated with the movement of physical of goods – by land, air, sea, or a combination of transportation modes. Part of the larger supply chain management system, TMS logistics software helps ensure timely delivery of goods by optimizing loads and delivery routes, tracking freight across local and global routes, and automating previously time-consuming tasks, such as trade compliance documentation and freight billing. A TMS system reduces costs for both businesses and end customers.

The emergence of cloud-based transportation management system software has leveled the playing field. Once the domain of only larger entities, TMS software is now being used by smaller companies that need an integrated digital system to compete in today’s marketplace.


Cloud-based technologies combined with growth in the e-commerce sector is spurring demand for TMS software. Grand View Research reports that the market for these systems is expected to expand at a CAGR of 16.2% between 2019 and 2025.  


Cloud TMS and new technologies

The cloud has made TMS systems accessible to more companies than ever – and has brought new capabilities and flexibility to the software. But other technologies are also having a huge impact on both TMS software and the transportation management industry. 


Artificial intelligence (AI) brings a number of game-changing innovations to the industry. It can handle time-consuming, routine tasks throughout the process and deliver significant time and cost benefits. Even more dramatic change will come with the advent of self-driving trucks. When fully market-ready, these autonomous vehicles should not only reduce costs and increase safety but also act as part of an intelligent system that collects and analyzes more data than ever before. The insight generated is of huge benefit to freight brokers who are constantly juggling everything from global fuel prices to legal changes, as well as to their customers.  


Machine learning can quickly make accurate predictions based on huge data sets. For example, machine learning can help businesses manage all-important trade-offs between cost savings and on-time delivery, considering factors such as delivery geography and real-time progress milestones to calculate the impact of more expensive single-stop deliveries versus cost-effective multi-stop deliveries


Internet of Things (IoT) sensors collect invaluable information that can be used to identify equipment that needs to be serviced and maintained. As more equipment throughout the supply chain is equipped with sensors, the more efficient the process becomes. 


Today, advanced analytics helps optimize routes and shipping modes, improve delivery times, increase fuel efficiency and profitability, and adapt to changes in transportation demand. As increasing volumes of data are generated, the role of analytics becomes even more essential. 


Other technologies can also make TMS systems more efficient. Chatbots, or digital assistants, can reduce administrative costs by handling routine client queries. And blockchain brings track and trace transparency across the supply chain.   


Enriched by new technologies, a modern transportation management system provides the automation, insight, and intelligent technologies that help companies shipping goods to thrive in the digital age.