TMS is offered as a module within enterprise resource planning (ERP) and SCM suites and helps organizations move inbound — procurement — and outbound — shipment — freight using tools such as route planning and optimization, load building, operations execution, freight audit and payment, yard management, order visibility, and carrier management. The ultimate goals of using a TMS are to improve shipment efficiency, reduce costs, gain real-time supply chain visibility and enhance customer service.
Typically, TMS serves both shippers and logistics service providers. Manufacturers, distributors, e-commerce organizations, wholesalers, retailers and third-party logistics (3PL) companies are some of the major users of TMS software.
TMS has gained traction over the past decade, as it has emerged as an enabler of seamless global trade and logistics management. By enabling information exchange across functional silos; amid geographically disparate operations; and in various languages, currencies, and business units, it has developed into an enterprise software that is finding growing appeal. Furthermore, its functionalities make it suitable for organizations that not only have complex logistics operations, but also those that may have basic transportation needs.