TMS definition – what is a Transport Management System?

A Transport Management System (TMS) is a software solution that helps shippers, carriers and logistics service providers to plan, execute and monitor their transport activities. A TMS centralises orders and shipments, calculates routes and costs, and provides real-time visibility of where trucks and loads are.

Typical TMS functions include route and load optimisation, freight cost calculation and rating, carrier selection, shipment tracking, document generation and reporting. Many systems also integrate with telematics, ERP and warehouse systems to exchange data automatically.

By using a TMS, transport companies can organise their processes more efficiently and standardise workflows across planners and dispatchers. This leads to fewer manual tasks and errors, better use of capacity, more reliable ETAs and ultimately higher customer satisfaction.

Why do transport companies use a TMS?

• More efficient planning and execution of transport orders
• Route optimisation and reduction of transport costs
• Improved on-time delivery and customer satisfaction
• Automation of routine processes and fewer manual tasks
• Better transparency and control over transport activities