TMS (Transportation Management System) is logistics software that helps manage the movement of goods across the entire supply chain — from shipping and receiving to distribution. It helps companies plan, execute, and optimize transportation in an automated and cost-efficient way.
What does a TMS do?
A Transportation Management System acts as the “brain” of logistics by bringing together data from order processing, transport orders, carriers, and delivery routes into one place. With a TMS, a company can:
Choose the best transportation methods and carriers based on cost and delivery times
Track shipments in real time
Manage transportation costs and invoicing
Improve supply chain visibility and responsiveness to changes
Report on logistics performance and key metrics
Plan and optimize transport routes
A TMS is often part of a broader Supply Chain Management (SCM) solution or integrated with other systems such as Warehouse Management Systems (WMS) or Enterprise Resource Planning (ERP) systems.
Why is a TMS important?
A TMS is not just software — it is a business-critical tool that helps companies to:
Reduce transportation costs by optimizing routes and comparing carrier options
Improve efficiency by reducing manual work through automated planning, tracking, and reporting
Increase shipment transparency with real-time tracking, improving delivery reliability and customer satisfaction
Support growth by scaling as the business expands and shipment volumes increase
When does a company need a TMS?
A Transportation Management System is not only for large manufacturers or logistics companies — it is useful for any business that ships goods regularly. A TMS is especially valuable when:
Logistics operations become more complex
– When shipment volumes grow, multiple carriers are used, or deliveries go to several locations, manual management is no longer sufficient.
The company wants to automate routine tasks
– Manual data handling, route planning, and shipment monitoring can be automated with a TMS.
Cost savings are a priority
– A TMS optimizes routes and loads, reducing fuel costs and shortening delivery times.
Customer experience is a key competitive advantage
– Real-time shipment tracking and better communication improve customer service.
Growth and international expansion are ahead
– As shipment volumes or market areas grow, a TMS enables controlled and scalable logistics.
TMS vs. other systems
A Transportation Management System differs from other logistics solutions:
WMS (Warehouse Management System) focuses on warehouse operations and product storage.
ERP (Enterprise Resource Planning) connects company-wide functions (sales, accounting, inventory, etc.), but a TMS focuses specifically on transportation and deliveries.
A TMS, in turn, optimizes the entire transportation chain from order to delivery.
Why a TMS is a valuable tool
A Transportation Management System (TMS) is an essential part of modern supply chain management. It enables companies to plan, execute, and optimize transportation efficiently, automate routine processes, reduce costs, and improve supply chain visibility. A TMS is not only for large enterprises — for any business that ships goods regularly and wants to improve its logistics, a TMS offers significant benefits.