A Transportation Management System (TMS) is a supply chain management element that is between a company’s enterprise resource planning (ERP) system and its delivery processes. The system ensures that the company’s resources are invested in the best transportation process for its cargo, offering the best combination of cargo maintenance, delivery time, and shipping costs.
Maintaining the system administration function is a logistics resource, typically an internal logistics department, a third-party logistics provider (3PL), and logistics software. If you want to streamline your supply chain of world-class fast vans visit https://www.fastvan.com/.
Most operators prefer internal logistics. Traditionally, this has required expertise, something common for large operators with large transport fleets. For these shippers, the traditional alternative to hiring experts is to contract with a 3PL provider.
Logistics software has provided shippers with a high-level 3PL alternative, capable of managing the shipping process and finding better shipping options as they arise. Not only does the software cost less than 3PL providers who manage and innovate the delivery process, but it also allows operators to control their TMS.
The TMS needs to plan the delivery process according to the sender’s parameters, which include things like delivery times, and storage costs.
The TMS must administratively monitor the shipping process and handle, for example, transportation signals, customs clearance, and invoicing. Companies that ship products need an efficient transportation management system and therefore a complete logistics function.
Traditionally, shippers have acquired this capability by hiring in-house experts or contracting with a 3PL provider. Today, however, logistics software allows them to have the logistics function in the company without having to pay extra for it.