What is meant by transport management system?

What is a transport management system (TMS)?

The transport management system (TMS) is a sector-specific Enterprise Resource Planning system (ERP) that is gaining increasing popularity amongst logistics companies. The back office software or transport management system allow carriers to convert orders into files and organise their planning. It automatically forwards details on the available cargo, assets, stopping places or remaining driving and resting times to the driver in the truck and sends feedback from the truck to the home office. These details make it easy for the back office to calculate costs.

Integrating the transport management system into other applications

Carriers looking to increase the productivity and cost efficiency of their logistics activities, can integrate the transport management system into other transport software, such as the fleet management system (FMS), trailer managementtruck navigation, invoicing software or stock management systems. By combining the transport management system with other applications, carriers will significantly reduce the number of manual tasks required to manage their company, while boosting both the accuracy and transparency of customer and subcontractors’ invoices.

Transport management system and fleet management system

Fleet management systems process data, such as status information, driving and resting times, loading and unloading times, service times, driving behaviour, the load factor or status information. At the heart of the FMS is an open database structure. The on-board computer collects the required mobile data from the driver, truck and cargo.

FMS is an executing module that distributes data to other software applications, such as the transport management system. The latter will, in turn, use the real-time data from the fleet to optimise the planning. This dramatically increases the productivity and accuracy in the back office and on the road, while reducing error margins and operational costs.

Transport management system and route optimisation

The transport management system also plays a key role in route optimisation at transport companies. As the system stores exact information on the fleet and orders, planners can load trucks and plan trips as efficiently as possible. We might therefore say that the software supports the productivity and profitability of logistics companies.