What is Transportation Management?
Wikipedia describes a Transportation Management System as, “a subset of supply chain management, concerning transportation operations and may be part of an enterprise resource planning system.”
A Transportation Management System will usually sit between an ERP sales system or order processing solution and the warehouse/distribution module.
Typically, a Transportation Management System will evaluate both inbound and outbound orders and provide the user with various suggested routes for delivery. These possible delivery routes are assessed within the system against data held on possible transport providers (this can even include an in-house option for the delivery of the goods). The TMS will select the best mode of transport at the lowest cost.
Once the mode of transport is selected, the Transportation Management System will go on to produce electronic load tendering, printing of transit labels and then also track the load with the selected carrier, helping to support freight audits and payments.
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Load optimisations can also occur, with the system suggesting which loads to combine and on which modes of transport for optimal cost savings.
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Some Transportation Management Systems also include extra modules for the inventory of stocks not otherwise in the warehouse, e.g. on loads being delivered or waiting to be unloaded. And modules for the management and booking of delivery or collection slots at warehouse dock bay doors.
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