A TMS (Transport Management System) is a logistics software solution that helps manage the movement of goods throughout the entire supply chain – from shipping and receiving to distribution. It enables companies to plan, execute, and optimise transportation in an automated and cost-efficient way.
In practice, a TMS combines two key perspectives:
DM (Delivery Management) – how deliveries are handled operationally on a day-to-day basis
TA (Transportation Administration) – how transportation is managed, controlled, and automated at a system level
What does a TMS do?
A Transport Management System acts as the “brain” of logistics by bringing together information related to order processing, transport orders, carriers, drivers, and delivery routes in one place. With a TMS, a company can:
Select the best transport method and carrier based on cost and delivery time
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 optimise transport routes
A TMS is often part of a broader Supply Chain Management (SCM) setup or integrated with other systems such as WMS (Warehouse Management System) or ERP (Enterprise Resource Planning).
DM and TA – two sides of the same system
A TMS covers the entire transportation process, but it can be viewed from two complementary perspectives:
DM (Delivery Management) focuses on operational execution:
Where shipments are right now
Which routes and drivers are being used
When the delivery will arrive (ETA)
How proof of delivery (POD) is captured
TA (Transportation Administration) focuses on control and automation:
How transport orders are generated from the system
How shipping labels, waybills, and documents are created automatically
How transportation rules and carrier selections are defined
How shipments are tracked, invoiced, and reported
A well-designed TMS seamlessly combines both into one coherent solution.
Why is a TMS important?
A TMS is not just a piece of software – it is a business-critical tool that helps companies to:
Reduce transportation costs
By optimising routes and comparing carrier pricing.Improve efficiency
Automated planning, tracking, and reporting reduce manual work.Increase delivery transparency
Real-time shipment tracking improves reliability and customer satisfaction.Support growth
A TMS scales as the business grows, helping manage increasing shipment volumes.
When does a company need a TMS?
A Transport 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 shipments increase, 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
– Route and load optimisation reduces fuel costs and shortens delivery times.
Customer experience is a key competitive factor
– Real-time shipment tracking and better communication improve customer service.
Growth and international expansion are ahead
– As shipment volumes or markets grow, a TMS enables scalable and controlled logistics.
TMS vs. other systems
A Transport Management System differs from other logistics solutions:
WMS (Warehouse Management System) focuses on warehouse operations and storage.
ERP (Enterprise Resource Planning) connects all core business functions (sales, accounting, inventory, etc.), but transportation is only one part of it.
TMS, on the other hand, is specifically designed to optimise the entire transportation process from order to delivery.
Why a TMS is a valuable tool
A Transport Management System (TMS) is an essential part of modern supply chain management. It allows companies to plan, execute, and optimise transportation efficiently, automate routine processes, reduce costs, and improve visibility across the supply chain.
A TMS is not only for large enterprises – for any company that ships goods regularly and wants to improve logistics efficiency, a TMS delivers significant value.
Shipit supports your transportation management flexibly
Shipit offers companies a versatile and flexible Transport Management System (TMS) that combines Delivery Management (DM) and Transportation Administration (TA) into a single solution.
Our solution is suitable for both small businesses and larger, more demanding organisations where shipment volumes, integrations, and processes require scalability and flexibility.
We are happy to help you find the solution that best fits your needs.
Contact us at myynti(at)shipit.fi, and let’s take a look together at how we can support your transportation management now and in the future.