By Stephan Sieber, CEO, Transporeon.
It's no secret that global supply chain disruption has dominated headlines since mid-2020. And, over the past three years, the continuing aftershocks of the COVID pandemic, combined with geopolitical factors and an economic downturn, have caused significant upheaval for shippers, cargo receivers, service providers, brokers, freight forwarders, carriers – and of course consumers.
Transportation Management, TMS, Distribution Software
The management of transportation operations of all types, including tracking and managing every aspect of vehicle maintenance, fuel costing, routing and mapping, warehousing, communications, EDI implementations, traveller and cargo handling, carrier selection and management, accounting. A Transportation Management System (TMS) is a term mainly used to describe a software package that helps to optimise transportation activities within an organisation by maximising the efficiency of resources and reducing operational errors. A TMS system belongs to a software group that commonly fall under the category of Supply Chain Execution (SCE).
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Transportation Management Systems (TMS)
Transportation is the process of shipping or moving people, animals and goods from one location to another. Freight forwarding and distribution is carried out by air, sea and land on roads, railways, airways, waterways and canals.
5 elements are needed for transportation to occur: infrastructure or accommodation (including terminals or ports), a vehicle (body or technology), Energy (fuel or pulse), an Operator and Support Services which allow the transportation to occur safely.
A Transportation Management System (TMS) is a software system designed to manage transportation operations of all types, including tracking and managing every aspect of vehicle maintenance, fuel costing, routing and mapping, warehousing, communications, EDI implementations, traveller and cargo handling, carrier selection and accounting.
TMS are one of the systems managing the supply chain. They belong to a sub-group called Supply Chain Execution (SCE). TMS, whether it's part of an Enterprise Level ERP System or from an integrated "Best of Breed" Independent Software Vendor (ISV) has become a critical part of any (SCE) Supply Chain Execution and Collaboration System in which real time exchange of information with other SCE modules has become mission critical. A TMS can optimise and transform a supply chain network by planning and executing inbound and outbound transportation processes.
A Transportation Management System can reduce costs through improved load planning, routing and mode selection, and create the optimal carrier mix based on routing guides. It can connect you to a collaborative logistics network of carriers, shippers, and customers and assist with automating the entire transportation management process. It can raise service levels by providing real-time visibility into shipping processes and increase productivity by eliminating manual transportation processes. Collaboration with carriers, vendors, and customers will improve on time delivery through better co-ordination.
Transport management systems are available “Software-as-a-Service” (SaaS), meaning fewer IT resources, no upgrade costs, easy connectivity, and low total cost of ownership
Transport planning allows you to plan and use a traffic & transport infrastructure intelligently. It is about preparing, assessing and implementing policies, plans and projects to improve and manage a transport system.
There are a number of software solutions available to cut transport costs, improve efficiency and raise customer service levels.
Route planning software is designed to plan the best and most efficient route between two different geographical locations.
Route scheduling software enables you to import your data, geo-code your orders and optimise. You will then be able schedule the lowest cumulative miles to carry out your workload, at the most economical cost and with the greatest vehicle utilisation. Time windows, quantity, fixed visit duration, capacity, costs, skill set, working time directive and speed are just a few of the parameters that are taken into account when producing results.
Route optimisation software is a more simple form of scheduling, designed to help fleets conduct runs in the best logistical order or redefine set routes for greater efficiency.
