Key Modules & Features of a Transportation Management System

A transportation management system (TMS) is a tool that helps companies manage the transport of physical products using a variety of shipping methods. It allows them to optimize loads and routes, manage carrier efficiency, and plan the details of shipping and logistics. TMS software includes numerous modules that cover each aspect of transportation, from tracking orders and managing the logistics of yard operations to setting loads and routes to ensure maximum efficiency. 

When used correctly, the insights offered by a TMS can help a company save money, increase overall efficiency, and improve the customer experience. It can also assist with regulatory compliance and improve the company's environmental impact. Transportation management systems can integrate with other supply chain management tools, ERP software, and CRM platforms to give full visibility into the supply chain.

This article explores the key features, modules, and uses of transportation management systems and how they can help improve business efficiency.

Transportation management systems include several key capabilities that cover logistics from beginning to end.

Carrier Management

Businesses that deal with multiple carriers may benefit from using a carrier management module to track performance metrics and rate details. This feature can load contract information and automate carrier selection based on rates, capacity, and recent performance.

Modern TMS platforms can support dynamic tendering and real-time negotiations, helping businesses get the best prices and performance from the carriers they work with. Faster deliveries, fewer lost parcels, and more affordable shipping rates can all contribute to increased customer satisfaction and business reputation.

Route and Load Optimization

Businesses that handle their own shipments can find the best balance between delivery times, capacity, service levels, and shipping costs with the route and load optimization module. This feature automatically calculates the most efficient load configuration and delivery route for the latest batch of orders while considering multi-stop routes, multimodal, and backhaul planning. Proper route optimization can cut fuel costs by up to 20%, offering substantial cost savings and improving the environmental sustainability of the business.

Freight Settlement and Audit

This feature allows businesses to: 

• Ensure compliance with contract rates and service terms
• Save time and reduce error rates through automating invoice matching and payment processing
• Quickly and efficiently resolve discrepancies and identify service failures or overcharges

The audit tools of a modern TMS can flag issues for manual review and alert managers to potential compliance problems.

Dock and Yard Management

Dock and Yard Management can help businesses:

• Improve the safety and efficiency of freight yards, and make better use of the available space and workforce.
• Schedule loading and unloading dock appointments accurately to reduce bottlenecks and provide a smoother experience for drivers and yard staff.
• Track trailer and container movements in the yard and enjoy better turnaround times and fewer conflicts.
• Get true visibility into yard operations, so managers can maximize throughput and speed up order fulfillment.

According to a recent survey, 34.1% of companies report that congestion is their biggest issue when it comes to yard management. This is second only to the challenge of managing manual tasks, which is a serious issue for 35.9% of those surveyed. Dock and yard management tools can simplify these issues and keep yards operating more efficiently.

Analytics and Reporting

This allows businesses to: 

• Get real-time data on a variety of key performance indicators, including cost per mile, on-time performance, and carrier performance. 
• Configure dashboards that only include the metrics each team needs to see, reducing information overload and improving visibility. 
• Generate reports that offer actionable insights and recommendations, facilitating data-driven decision-making.
• Customize reports with recent data or choose a longer time horizon based on the purpose of the report.

The data gathered by TMS can help with long-term strategic planning and short-term decision-making. Find our more about the role of analytics and reporting in a TMS from our article 'The Role of Data Analytics and Reporting'.

When choosing a TMS, look for these key capabilities that can enhance the system's usability and value across an organization.

Real-Time Shipment Visibility

Both businesses and customers can benefit from having real-time visibility into the status of shipments. Manhattan's transportation management systems offer 3rd party GPS and telematics integration for in-transit tracking and provide alerts and notifications about delays, route deviations, and delivery milestones.

Multimodal and Multi-Leg Support

Manhattan’s multimodal and multi-leg support allows customers to enjoy the flexibility of being able to manage and monitor shipments regardless of their mode and type. Choose a TMS that supports truckload (TL), less-than-truckload (LTL), parcel, rail, air, and ocean shipments. A modern TMS can plan and track shipments as they move across carriers and geographies, making multi-leg, international shipments a simple task.

Having accurate tracking, even for complex journeys, can improve customer perception of the shopping experience. Rather than feeling "out of the loop" while waiting for a shipment to be delivered, customers receive regular milestone updates and can watch the package move from carrier to carrier.

Integration Capabilities

Put an end to data silos and turn supply chain management and transportation management systems into a single source of truth by connecting them to existing ERP, WMS, and CRM systems, as well as external carrier systems. Look for a TMS that offers powerful APIs and recognizes EDI standards to ensure data flows are smooth and frictionless. Built-in support for popular 3PL and freight-broker platforms is also essential for any organization that works with multiple carriers.

Transportation Management System Software is a growing industry, and North American companies are leading the way, accounting for 38.8% of the market share. For businesses that haven't yet adopted such software, concern about integration with legacy systems is a major barrier. Choose a TMS provider that offers easy integration with any existing systems to help overcome that communication barrier and unlock the benefits of detailed reporting and analytics, powerful yard and shipment management capabilities, and automation.

Automation and AI Features

These features allow businesses to take advantage of predictive analytics tools for demand forecasting and disruption mitigation. Use AI and automation features for carrier tendering, rate shopping, and exception handling to ensure the selected carrier offers the best rates for shipments and can quickly respond to disruptions and changing market conditions. Machine learning and AI-powered automation features can continuously optimize a company's operations and help warehouses plan for fluctuations in demand.

Scalability and Cloud-Based Deployment

Cloud-native solutions offer stability and scalability and remove the burden of software installation and management from in-house teams. Manhattan’s supply chain management and execution solutions provide a unified, cloud-native platform that receives regular security and feature updates. The platform can grow and scale with the business as it grows across regions, works with new partners, and increases the shipping volume it handles. Cloud applications only require basic client hardware and can be tailored to the needs of any organization.

Conclusion

Transportation Management Systems play a pivotal role in helping businesses manage their order fulfillment and supply chains. When used effectively, they can lead to cost savings, increase the company's agility and ability to respond to disruptions, and improve the overall resilience of the supply chain. 

An effective TMS will offer easy integration with third-party applications and any legacy systems that the business depends on, eliminating data silos and providing a single source of truth for orders, shipments and information about yard operations and workforce productivity. When choosing a TMS, consider the core modules and advanced features offered to ensure the software has the features required for the company's current operations and can grow and scale with the business.

When planning to update an organization's supply chain processes by deploying a transportation management system, start by carrying out an audit of the business' current systems, and consider which features and modules are most important for that industry and the company's operational goals. Our supply chain planning and execution software offers a unified, end-to-end system for supply chain management and logistics. We offer af flexible cloud-native platform that can grow and scale with the changing demands of any modern business.

To learn more about Manhattan's supply chain and transportation management systems, contact us to schedule a consultation.