What is TMS? Importance of TMS Who Can use a TMS? The Benefits of a TMS

What Is a Transportation Management System?

A transportation management system (TMS) is a logistics platform that uses technology to help businesses plan, execute, and optimize the physical movement of goods while making sure that the shipment is compliant and proper documentation is available. This kind of system is a key component of larger supply chain management (SCM) systems.

Often referred to as a transportation management solution or transportation management software, a TMS provides visibility into day-to-day transportation operations. It helps logistic companies with trade compliance information, documentation, and ensures timely deliveries of freight and goods.

Transportation management systems also streamline the shipping process and make it easier for businesses to manage and optimize their transportation operations. These systems can be deployed across all modes of goods transportation whether it's by land, air, or sea.

Why It’s Important for Trucking Companies to Have a TMS – Transportation Management System

Transportation management systems can play a central role in trucking operations, affecting every part of the process—from planning and procurement to logistics and lifecycle management. The broad and deep visibility offered by a powerful & robust trucking management software leads to more efficient resource planning and execution, which results in higher customer satisfaction.

That, in turn, leads to more sales and helps businesses grow. With such a dynamic global trade environment that we live and transact in, it is important to have a system that will allow you to successfully navigate complicated processes and get around trade policies and compliance.

Higher revenues, increased customer satisfaction, and scalable growth in a single centralized software system.

Transportation management systems are primarily used by businesses that need to ship, move, and receive goods on a regular basis, including

  • Carriers / Trucking Companies / Fleets / Owner Operators
  • Dispatch As A Service (DaaS) new*
  • Brokers / Digital Brokers
  • Shippers / Manufacturers / Distributors
  • Companies that provide logistics services, such as third-party and fourth-party logistics (3PL and 4PL) companies and logistics service providers (LSPs)

A TMS—and modern transportation management systems in general—provide many benefits to the businesses.

Some of the top benefits include:

  • Reduced costs for the business and the end customer.
  • Simplification of supply chain processes across geographies, modes, and carriers.
  • Automation of business operations for faster and more accurate billing and documentation.
  • Improvement in visibility and security, especially in transit.
  • Time savings—fewer manual steps result in fewer delays and faster delivery times.
  • The ability to track freight, both locally and globally, on a single platform.
  • New business insights as better reporting leads to faster action and process improvement.
  • Improvements in customer service and customer satisfaction with real-time updates and fewer shipment delays.
  • The ability to scale the business by meeting and exceeding customer demands for fast, on-time shipments.
  • One Centralized system of records and management for all your operational needs.
  • The Added Value of a TMS in the Cloud.
  • A cloud-based transportation management system delivers many of the same business benefits as other cloud solutions, including improved economies of scale, lower total cost of ownership, no upgrade fees, and a faster return on investment (ROI).

Key Modules of A Good Trucking
Transportation Management System

A good trucking TMS transportation management system offers a comprehensive suite that allows you to manage your entire business from a single location. Moreover, a good TMS also offers great flexibility and is compatible with various integrations, allowing you to scale the service per your needs.

Some of the key modules of a Trucking TMS include:

Even the top TMS Sytems are incomplete without a driver app. Real-time communication between drivers and dispatchers ensures efficiency and transparency. Moreover, drivers also have a lot of redundant administrative tasks to do.

With the help of a driver app, manual labor can be significantly reduced and drivers can focus more on what they love, i.e. driving. This results in an elevated driver experience and can play a huge role in driver retention.

Instantaneous Driver Dispatch Information BOL/POD Uploading with Approval Workflow
Driver to Dispatcher Real-Time Chat Automatic Document Enhancement
Maintenance Updates & Receipt Submission by Driver Driver Time Off Request
Easy Tracking & Driver Scheduling Through App Driver Expense Submission and Approval Workflow Track Trailer Pickup and Drop Update

Statistics suggest that 42% tracking success is good enough for trucking companies. It helps in saving costs spent on time-taking check-in calls. Cloud transportation management system or trucking management software provides you with 100% load visibility allowing you to achieve a level of efficiency in operations.

Real-Time Connectivity With HOS LTL Load Tracking Real-Time Automated Load Tracking
Temperature/ Trailer Tracking Split Load Tracking Predictive ETAs
Automatic Check Calls Shipment Updates Management Asset Tracking View

Whether it's sourcing, negotiating, booking, confirming & creating the loads, best fleet management software offers you a single-window load sourcing solution. Sourcing the most profitable loads can be a very complicated process.

A good TMS cuts on the time you spend on solving complex mathematical calculations. It makes calculation easier and helps you find the best loads, making operations more efficient while ensuring 100% accuracy.

Multiple Loadboard Integrations Market / Lane Planning Automated Truck Posting
Automated Load Searching Smart Load to Truck Matching Engine Smart Load Rating Engines
Automatic Daily Truck Capacity Emails Built-In Broker to Dispatch Communication Easy-to-use Dashboard

Paying your drivers promptly and accurately is a crucial aspect for any trucking company. Handling multiple types of driver’s remuneration models can be very challenging.

In addition to regular monthly payments, a good trucking management software supports all kinds and combinations of driver settlement models such as pay-per-hour, pay-per-mile, pay-per-load, pay-per-trip, % of revenue, and more.

Cloud transportation management system (TMS) eliminates all the hassles of account management as it automatically brings expenses and associated payment transactions to the driver settlement.

Company Driver Settlements Owner-Operator Settlements Partner Carrier Settlements
Choose Any Payment Settlement Structure Batch Settlements Accuracy & Transparency

Fleet scheduling, driver management, and information management are huge troubles for trucking companies. Guesswork and crossed fingers won't keep things smooth for long. Good trucking management software helps you to improve efficiency and productivity, reduce costs and ensure customer satisfaction by organizing information and making it readily available when required.

With smart record management, you can reduce overhead costs, make wiser business decisions and score more profitable loads.

Smart Single/Multiple Carrier Management Solution Simplified Carrier Record Management Automatic Load Sharing Between Multiple Carriers
Driver Documents & Records Manager Real-Time Connectivity With HOS Multiple Fuel-Card Assignments
One-Window Information Management Vehicle / Trailer Management Advanced Reporting

When it comes to dispatch management, there are countless details to manage on a daily basis. Dispatchers often spend too much time manually tracking vehicles, planning routes, and organizing drivers’ schedules. That is where a good TMS for carriers can help.

An efficient Cloud transportation management system (tms) not only helps you keep track of every movement but also allows you to focus on the strategic aspects of dispatch management and develop new, more efficient ways to provide service.

Basic Load Management LTL and Trip Management Reefer temperature tracking
Customer Credit Check Appointment Scheduling Management Advance Accessorial Management
PDF Merge Dispatcher Unit Assignments High Empty Miles Check

Quick and timely processing of invoices is crucial for smooth trucking. A Cloud Transportation Management Software system (TMS) comes with an invoicing module to ensure fast, easy, and seamless processing of invoicing translating into an improved organization and better cash flow.

It should allow generating multiple invoices with a single click. Leading TMS systems let you pick from multiple templates and also give you the liberty to customize the information you wish to include or exclude.

One-Click Invoice Creation Fast Invoice Sending To Factoring Companies & Customers Track Pending Payments
Update Invoices With Accessorial Charges QuickBooks & Netsuite Integrations Manage & Track The Entire Invoice Lifecycle From A Single Window
Manage Multiple Carrier Invoicing Separately Automated Missing Document Check Flexible & Customizable Solutions

As with any other industry, business analytics and reporting can help trucking companies make informed decisions and achieve a variety of goals. By effectively leveraging the power of data, trucking companies can better understand their customers, identify market trends, measure accomplishments against resources, and optimize operations.

A good TMS for carriers offers valuable business insights to trucking companies that help them get through the tough times. The trucking industry is the most vulnerable to political turmoil and instability. With the help of data, trucking companies can power through all uncertainties with ease.

Comprehensive business insights Tracking and company overview details Fuel Utilization Reports
Fuel Discount Utilization Lane Analysis Expense Reports

Keep Your Eyes On The Road
While Sitting Back In The Yard

LoadStop’s advanced technology is designed to empower every individual across an entire trucking organization.

From owners to fleet managers, drivers, finance, and beyond, everyone can accurately and efficiently execute, deliver, and enhance their current processes.

Transportation is a highly-competitive and highly-regulated industry. Even a small and apparently innocuous lapse can cost you hundreds of dollars. With the help of automatic reminders, LoadStop helps employees and all stakeholders stay on top of critical tasks and mitigate risks and exceptions.

Being a Cloud Transportation Management System (TMS), LoadStop greatly reduces your administrative burden by automating routine manual tasks and provides you with a platform to establish consistent document and data storage.


The Future of TMS

Customer expectations keep rising. Ever-changing global trade regulations are also forcing supply chains to innovate to keep pace, often by investing in a transportation management system or trucking management software. At this point, it is recommended that trucking companies consider using the best TMS for carriers to simplify their complex trucking operations.

Cloud transportation management systems must become more robust and feature-rich, providing faster responses to consumers and more detailed information to businesses. Machine learning enables TMSs to be more intelligent, providing better recommendations and more accurate predictions.

Companies can choose to integrate their transportation and global trade management systems with emerging technologies to further improve visibility and offer better customer service. Some of these innovative technologies that are currently available include:


A transportation management system (TMS) is specialized software used for planning, executing, and optimizing the shipment of goods. TMS is a platform that utilizes technology to help trucking, transportation, and logistics companies plan, execute, and optimize the physical movement of goods, both incoming and outgoing, ensuring the shipment is compliant and proper documentation is available.

An effective transportation management system (TMS) platform works closely with the supply chain management and the ERP platform, simplifying the entry of customer orders and integrating the same with the warehouse management and inventory management system—thus, creating a loop in the network.

Essentially, a transportation management system (TMS) is used to move products from one place to another in an efficient and as cost-effective way as possible. An effective TMS offers end-to-end visibility across the entire supply chain network.

With the help of a robust TMS solution, trucking companies can automate key concerns such as cost-effective and efficient load souring, best routing, and carrier selection based on each customer’s order service requirement so that the entire system reaches optimization.

Analytical and financial functions are equally important to control costs and constant improvement. An effective TMS offers billing and invoice management, resulting in an improved organization and better cash flow.

Typically, ERP helps store and send information among suppliers, warehouses, and carriers. It cannot process, analyze, and optimize the data. Unfortunately, such static systems are not capable enough to handle the complex demands and challenges of a modern supply chain.

On the other hand, an effective TMS helps companies process their data, helping them make smarter decisions and make more cost-effective planning to improve business operations. It provides real-time visibility into shipments, sends alerts to track and trace the shipments and quickly resolves the problems as they appear.

Hence, you cannot just use ERP for your transportation needs. An effective transportation management system is critical to attaining end-to-end supply chain visibility.

Transportation costs are a major expense for the trucking companies. A good transportation management system (TMS) follows a pragmatic approach to reduce costs and increase revenue for the business.

TMS helps automate transport planning and execution processes such as best routing, cost-effective sourcing, and carrier selection. This not only improves optimization but also reduces overall costs.

A comprehensive TMS allows companies to innovate and expand their solutions and services, increasing revenue and driving competitive advantage.

LoadStop is a comprehensive, turnkey next-generation solution for trucking companies. It provides end-to-end automation and reduces the need for disconnected manual back-office processes.

Primarily, transportation management systems are used by businesses involved in shipping, moving, and receiving goods regularly, including:

  • Manufacturers
  • Distributors
  • Ecommerce companies
  • Retail businesses
  • Companies providing logistics services, such as third-party and fourth-party logistics (3PL and 4PL) companies and logistics service providers (LSPs)

Furthermore, businesses in almost every industry make use of a transportation management system. The main users of TMS are businesses that spend above $100 million annually on freight. However, cloud-based TMS solutions such as LoadStop have made it easier and more affordable for small-scale companies to reap the benefits of transportation management systems.

Transportation management systems play an integral role in supply chains, affecting every part of the process—from planning to procurement to logistics to lifecycle management.

Providing end-to-end real-time visibility into the shipment leads to more efficient transportation planning and execution, resulting in higher customer satisfaction. As a result, this leads to more sales, helping companies grow.

Being a part of a dynamic global trade environment, it is important to have a system that allows us to navigate complicated processes around trade policies and compliance successfully.

TMS buyers can expect to pay anywhere between $10,000 to $250,000 for the license, plus an annual maintenance fee that is typically a percentage of the initial license cost.

The costs of an implementation of TMS depend on the integrator’s fees, how long the implementation takes, and the number of consultants involved.

The cost to implement and support a transportation management system vary significantly, but one can assume the price will be less with a cloud TMS platform than a licensed TMS. The cost of a transportation management systems also depends on the type of system you are looking for—whether it is ready-made or custom-made.

The good news is that LoadStop offers a cost-effective TMS solution for the trucking companies, making it easier for them to afford the technology.

Join Our Mailing List

Team up with LoadStop to unlock your true potential. Subscribe to our mailing list and stay updated with the latest in trucking technologies.



Subscribe to our newsletter and get latest updates & news.

Back to top