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Transportation Management System Characteristics

When you’re looking for a transportation management system (TMS), there are some key characteristics you should look for. A TMS is capable of managing thousands of shipments and acts as a central communication hub for a number of stakeholders. It helps companies manage complex motor carrier rate schedules, capacity issues, and rising freight rates. In addition, it can support a diverse freight network delivery network. Automated reporting capabilities are another important TMS characteristic.

The most important TMS characteristic is flexibility. While some TMSs focus on a single mode of transportation, the majority of these systems support multimodal transportation. When a carrier uses more than one mode of transportation, they must adhere to a contract and may use subcarriers to reduce their costs. The benefits of intermodal transportation are numerous, including greater control over carriers, improved visibility, and better service. A TMS can make the process easier by giving shippers more options when it comes to choosing carriers and pricing.

Having a global view of freight movements is critical in a highly competitive world. However, many TMS systems are not truly global in nature. Instead, separate systems on different continents send data to separate discrete systems on other continents. This approach limits visibility and impedes strategic planning. In order to address these issues, a TMS should be able to provide visibility and operational intelligence for global transport networks. For instance, a TMS can be used for monitoring, analyzing, and executing global supply chains, as well as performing tactical and strategic operations.

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