July 17th 2020

What does a TMS system do?

What does a TMS system do?

TMS systems, or Transportation Management Systems, have become an integral technology to many different companies and industries. To find out more about the uses of a TMS system and whether your company could benefit from a TMS system, read on for a detailed guide on this new type of software application.

What is a TMS system?

A transportation management system is a logistics-based software application that is usually used in conjunction with a supply chain management system. However, they can be used without any other applications. They enable you to make sure that your supply chain can run smoothly without the added risk of human error. While some TMS systems only allow you to manage one type of transportation, such as freight or cargo ships, many newer models now will enable you to track multiple types of transportation means at once.

How do they work?

TMS systems work by accessing data about your transportation means and carriers, which you are then able to freely use to plan your shipments of goods. This is why the majority of TMS systems work within more extensive supply chain management software, allowing them to share data and get the information that they need to help you to manage your processes. They may also allow you to provide the data that they need yourself, such as when you receive customer orders and the items that you want to be shipped.

What are the most common uses of a TMS system?

TMS systems are often used in businesses to help managers to plan the shipment of goods. This includes making sure that their products reach their destination after shipment and enabling them to choose the right carrier to deliver their goods, and give an accurate estimation for delivery time. Not only this, but TMS systems can also help you to find the best price for the delivery of your shipments. As well as helping you to deliver the products that you create, they can also help you to synthesise your shipments with other areas of your company, such as manufacturing and packing, to make sure that these run in a more efficient manner. Rather than leave anything up to chance, TMS systems allow you to see the movement of your goods at all times.

What industries use a TMS system?

The most common industry to use TMS systems are manufacturers, as this enables them to make sure that the products that they develop can reach retailers and other businesses once they leave their factory or warehouse. However, other companies, such as retailers, still use TMS systems to make sure that their products can reach their customers and that their customers can be duly satisfied with good delivery times.
How can you implement a TMS?

Your transport management system can easily integrate with other systems, such as the freight management systems that we provide here at cocoon.co.uk, to make sure that you can see your shipments immediately and track their progress at all times.

If you have any questions the quickest thing to do is give us a call: 01543 223074