What is a TMS system and what is it for?

A TMS system is a transportation management software. That is, a type of logistics system that allows to automate a large part of the logistics process, thus increasing the efficiency of the processes and improving the service.

What is a TMS system

A TMS (Transport Management System) is a system for managing a company's supply chain. These systems collect and manage information from the company's various logistics activities and make it available to the entire company. In this way, this information can be made available to suppliers, transport companies, customers themselves, etc.

Functions of a TMS system

The functions of a TMS system are varied but, in general, they are aimed at improving the logistics process as a whole. This is evident in three specific functions that articulate the operation of all TMS systems.

Real-time information: One of the functions of a TMS system is to provide real-time, up-to-date information on each of the activities and sub-activities of the logistics processes (both as a whole and individually for each order).

Synchronize the different logistic phases: By having this information available, it allows synchronizing the different phases of the logistic process, which implies a much more agile development of the same.

Optimize the process as a whole: Finally, as a result of the synchronization capacity and the availability of the necessary information, the logistics process as a whole is optimized, which translates into cost savings without affecting the quality of the service offered. In fact, the service is better because it is optimized to the maximum.

Advantages of using a TMS system

Having a TMS system offers many advantages. Some of the most important are the following:

Supply chain visibility.

By having a TMS system, the entire logistics process and supply chain can be monitored. In addition, this information is constantly updated in real time, so it is of high quality and perfectly suited to the needs of the logistics process at all times.

Better inventory control

Another advantage of having a TMS system is that it allows for better inventory control, which means lower storage costs. In addition, it can be adapted much more efficiently to the real demand of orders.

Reduce invoice errors

By automating the payment of orders, possible billing errors resulting from the manual execution of this type of activity and associated with the human error factor are reduced.

Intelligent transport

By using a TMS system in logistics processes, transportation becomes much more efficient. This is evident in the optimization of routes, parcel control, detailed metrics, as well as a much more sustainable and efficient transport service.

Overall cost reduction

Finally, the economic advantage of using a TMS system cannot be overlooked. By optimizing and streamlining all logistics processes, this translates into considerable cost reductions, thus increasing the company's profits without affecting the quality of the service offered.