As the supply chain ecosystem reels from volatile changes and erratic economic adjustments, businesses continue to find it hard to build a powerful strategy that will see them through the arduous times.
Businesses would require an unprecedented and unparalleled game plan to remain ahead of the curve and make a mark in today’s digital economy.
This is where a single platform like a TMS software comes into the picture.
It is easily accessible, provides actionable information, induces transparency, plans for the future, and aids decision-making.
What is a TMS Tool?
Transport Management System or TMS can be defined as specialized software for planning, executing, and optimizing the shipment of goods.
Any effective TMS is expected to support decision-making, execute transportation orders, including rate comparison, track real-time updates and follow-ups, and help with KPI monitoring.
As the TMS software evolved, more new-age and interactive features have been integrated into this software, making it a control tower of sorts.
A TMS is predominantly considered to be a linkage between an Enterprise Resource Planning (ERP) software and any distribution module or order processing tool.
Why is a TMS software integration important?
The global transportation management systems market size was valued at USD 9.22 billion in 2021.
Considering the reliance on this TMS solution, the market is expected to expand at a compound annual growth rate (CAGR) of 14.6% from 2022 to 2030.
A company that has not integrated a TMS solution into its ERP systems or digital strategy might not have the desired information and knowledge to sustain its business.
The key benefits that a TMS software provides includes transparency, visibility, efficiency, and optimization through the operations. All of these parameters are essential and crucial to remain competitive in today’s fast-paced supply-chain industry.
10 Best TMS Platforms for a Robust Digital Strategy
1. Cargowise
The CargoWise solution is known for helping their customers remain one-step ahead, always.
The ultimate aim of the CargoWise portal is to provide an array of information that helps businesses derive a competitive advantage from it.
This tool has gained traction for being able to remain reliable during volatile times.
It provides real-time visibility and vertical and horizontal integration within and outside the business.
Their comprehensive compliance support is updated constantly to ensure that all the right laws and regulations across the 170 countries that they are licensed in, are available within the tool.
This portal is available in over 30 languages and across numbers of currencies and freight modes.
As everyone works on the same tool, data remains reliable and gets automatically communicated.
Additionally, Freightify can easily integrate with your existing CargoWise TMS to increase efficiency as well as seamless operations and data exchange.
2. Magaya
The Magaya TMS solution aims to streamline all supply chain functions - from creating a freight quote to completing the necessary customs documentation, performing warehouse management procedures, and last-mile logistics within one tool without multiple data entry.
The tool supports quote creation, label printing, PO management, shipment tracking, warehouse management, duty payments, and accounting workflows. It also extends its support with cargo insurance.
With the Magaya TMS integration, it is possible to reduce the cost of administration and logistics, improve service levels, increase visibility, get the bigger picture, automate processes, standardize operations, and track and manage operational metrics.
This is a cloud-based offering that can be scaled up quickly with easy API integration and a user-friendly framework.
Moreover, Freightify can easily integrate and help in migrating data seamlessly, to and fro with your existing Magaya TMS.
3. Blue Yonder
Blue Yonder’s TMS platform looks to transform transportation operations (both inbound and outbound), increase supplier and carrier collaboration, increase flexibility, and manage real-time challenges.
The main USP here is to ensure that their customers do not work in silos and instead bring all of the data under one single umbrella to enhance agility.
This tool increases optimization not only with load management and container utility but also goes the extra step to ensure that routes are augmented and rates are ideal.
It uses real-time inventory and resource availability information to be able to suggest smart options.
Most importantly, their prescriptive exception management allows customers to mitigate risks and empower the top management to make quick decisions while anticipating potential issues.
4. Kuebix
This cloud-based software uses a single source code, thereby allowing scalability for shippers of any size.
Across geographies and transportation modes, this single platform provides a visibility exposure that helps customers see the bigger picture. Their software can also be easily integrated with other ERPs, order planning tools, and existing communication channels.
They utilize and rely on their close-knit and well-managed shipping community to support load matching and load optimization.
An extension of this is to allow negotiated rates across carriers to be compared.
The most utilized feature of this platform happens to be the actionable analytics that it can offer.
These metrics and visualizations help the top management hold their carriers and suppliers accountable and make decisions that enhance their shipping operations.
5. Oracle
Oracle is known for being an ERP builder within various avenues, remaining ahead of the market, and augmenting operational efficiency.
The Transport Management module within this larger ERP eco-system achieves similar results and orchestrates data for a sustainable future in logistics. Oracle’s digital assistant helps to enhance service commitments by leveraging new communication channels and responding to issues instantly.
This platform uses machine learning to accurately calculate transportation timelines, allocate resources efficiently, eliminate wastage of resources, test what-if scenarios, and forecast potential supply chain issues. Their fleet management capability supports both private and contract vehicles and helps to fully utilize the fleet resources available. Similar to other tools, analytics and transportation execution are included in the Oracle modules.
6. SAP
SAP’s product range varies from enterprise management to financial management.
Within this space, they support supply chain and freight related streamlining through their transportation management system. They take pride in being an interactive, collaborative, and resilient tool.
Their game plan is to provide a single source of truth, automate 100% of the load matching, ensure on-time deliveries, and provide millions in cost savings.
Their digital influence accelerates, innovates, and transforms the entire supply chain network. It extends from the procurement and manufacturing process to warehouse management, yard logistics, and transportation execution.
It is a dynamic tool that understands real-world situations. This tool also helps with minute load planning down to the pallet level, helping to visualize vehicle space.
7. TMC
The TMC platform forms part of the larger C.H Robinson group with a specialization in supply chain consulting across the globe.
Their expertise in the freighting and transport sector is immense. Companies can tap on and imbibe this knowledge without having to increase their workforce. Their managed services offering allows for outsourcing work without losing control.
Their TMS structure allows for network and freight optimization, contractual and spot rate management, tendering and execution, end-to-end visibility and transparency, freight audit and payments, along with predictive analytics.
The ultimate aim is to meet transportation goals, increase efficiency, decrease costs, and reduce possible risks in this supply chain cycle. Their smart solution has nearly 200,000 companies onboard and is very well connected.
8. Uber Freight
The Uber Freight TMS platform (SaaS) encapsulates Logistics Engineering, Procurement, Freight Audit Payment (FAP), Ocean and Air, and Data Insights.
They aim to create a Control Tower that can automate and innovate proactively. The Transplace solution works effectively across geographies and company sizes. An extension of this module includes the creation of border crossing documentation and compliance with customs clearance.
Their community boasts of a customer base of 62000 and at least 530M transactions annually. Tailored for a dynamic freighting market, the system continuously evolves and provides optimized planning, execution, management monitoring, and final settlement.
It has a proactive approach to managing supply chain disruptions. Typical to other TMS software, it provides visibility, consistent tracking, visual information, and actionable data insights.
9. PCS
PCS’s signature TMS tool is an AI-powered cloud platform with resilient business functions designed for synergistic use across all modes of transportation and through the supply chain logistics operations.
Its primary goal is to help you transform the logistics department from a cost center to a profit center through automation and control. It leverages on strategic rate, route, and mode optimization standards to provide agile decision-making capabilities.
The tool is known to utilize and crunch close to 14TB of recorded transportation data that fuels its AI functions. Hence, the solutions that the software illustrates provide near accuracy of expected situations and simulated scenarios.
With accounting, fleet management, and dispatching included in the same platform, it helps businesses cascade information transparently across teams.
10. BluJay
BluJay prides itself on being connected with over 50,000 carriers and partners through the supply chain channels. They have been in this market since 1999, just before the advent of digitization in freighting and just as the concept of the internet boomed.
This has helped them evolve through the years, providing their clients with competitive edges as the tides changed.
Their statistics mention that over $18 billion worth of freight moves through BluJay’s Transportation Management platform each year.
Their ocean freight TMS module for shippers provides an agile and scalable platform with control over partner collaboration and enhanced visibility.
It has an integration with ocean carrier trading partners to decrease the complexity of implementations. They also have separate TMS solutions for digital freight forwarders.
What are the key features to look for when considering a travel management system?
1. Route Optimization
A robust TMS should offer advanced route optimization capabilities to help you plan the most efficient routes for your shipments. This feature considers factors like traffic conditions, delivery windows, and vehicle capacities to minimize fuel costs, reduce mileage, and improve overall delivery times. By optimizing routes, businesses can enhance operational efficiency, reduce transportation costs, and provide better service to customers.
2. Freight Tracking and Visibility
Real-time tracking and visibility features are essential for monitoring the status and location of shipments throughout the transportation process. A TMS with comprehensive tracking capabilities enables businesses to proactively manage logistics operations, identify potential delays or disruptions, and provide accurate shipment status updates to customers. Enhanced visibility also allows for better decision-making, improved customer service, and increased supply chain transparency.
3. Carrier Management
Effective carrier management functionalities are critical for building and maintaining strong relationships with transportation partners. Look for a TMS that offers tools for selecting carriers, managing contracts and rates, tracking carrier performance, and facilitating communication with carriers. By optimizing carrier relationships, businesses can secure competitive rates, improve service levels, and drive operational efficiency.
4. Load Planning and Consolidation
Load planning and consolidation features help businesses maximize trailer utilization and minimize shipping costs by optimizing the arrangement of freight within each shipment. A TMS with load optimization capabilities considers factors like weight distribution, cubic utilization, and stacking constraints to efficiently utilize available space and minimize empty or partially filled trucks. By consolidating shipments and maximizing load capacity, businesses can reduce transportation expenses and minimize environmental impact.
5. Compliance and Documentation
Compliance management functionalities are essential for ensuring that shipments comply with relevant regulations and documentation requirements. A TMS should support compliance with trade regulations, customs requirements, and industry standards, providing tools for generating shipping documents, managing import/export documentation, and staying up-to-date with regulatory changes. By automating compliance processes and maintaining accurate documentation, businesses can minimize the risk of penalties, delays, and disruptions in international trade.
6. Reporting and Analytics
Robust reporting and analytics capabilities enable businesses to gain valuable insights into their transportation operations and performance. A TMS should offer customizable dashboards, reports, and analytics tools to track key performance indicators (KPIs), monitor trends, and identify areas for improvement. By leveraging data-driven insights, businesses can optimize transportation strategies, identify cost-saving opportunities, and enhance overall supply chain efficiency.
By prioritizing these key features when evaluating TMS options, businesses can choose a solution that meets their specific transportation management needs and enables them to achieve their operational and strategic objectives effectively.
What are the benefits of using a travel management system?
Using a transportation management system (TMS) offers a multitude of benefits, akin to unlocking a treasure trove of efficiency and optimization in your logistics operations. Here's a glimpse into the advantages:
- Cost Reduction: By optimizing routes, consolidating shipments, and selecting the most cost-effective carriers, a TMS helps slash transportation expenses, boosting your bottom line.
- Simplified Processes: Say goodbye to cumbersome manual tasks. A TMS automates key functions like load planning, carrier selection, and documentation, streamlining your entire supply chain.
- Enhanced Visibility: With real-time tracking and monitoring capabilities, you gain unparalleled visibility into your shipments' status, enabling proactive decision-making and minimizing disruptions.
- Improved Efficiency: From faster billing cycles to smoother freight execution, a TMS boosts operational efficiency across the board, saving time and resources.
- Compliance Assurance: Navigate the labyrinth of trade regulations and compliance requirements effortlessly. A TMS keeps you abreast of changing regulations and ensures your shipments are always compliant.
- Time Savings: With streamlined processes and automated workflows, your team can focus on strategic initiatives rather than getting bogged down by manual tasks, resulting in faster delivery times and happier customers.
- Scalability: As your business grows, so does the complexity of your logistics operations. A TMS scales with your business, adapting to evolving needs and ensuring seamless expansion.
Conclusion
Deciding on the TMS to capitalize on would be a decision taken for the long term. It primarily needs to meet and reach the goals that a business yearns to achieve.
While there are numerous TMS solutions to choose from, it is important to find the right fit considering the legacy systems in place, the pricing model, and the service modules it offers.
Note: The ten tools elucidated above are ranked in no specific order
