What Is A Transportation Management System?


A Transportation Management System, or TMS, is a solution that manages the dispatching of trucks or carriers, as well as fleet maintenance, billing, driver pay, driver records, IFTA reports and DOT compliance. Additionally, a Transportation Management System streamlines operations by optimizing carrier routes, and reporting key analytics while improving customer service across business areas.

What Are The Benefits Of A TMS?

The key benefits of a TMS are the elimination of redundant data entry, better truck utilization, improved visibility and communication between dispatchers and drivers, enhanced customer service, the ability to manage more difficult, but higher-paying, freight, streamlined accounting and integration with QuickBooks, simplified driver management, DOT regulatory compliance, simplified IFTA fuel tax reporting, and strong business intelligence with robust KPIs

What Is A Transportation Management System? | Benefits? | Features?

Who Can Benefit From Transportation Management Software?

Transportation Management Software benefits Truckload Carriers, Freight Brokers, 3PL Companies handling Third Party Logistics, and Less than Truckload - LTL Carriers. These types of operations can all benefit from Transportation Management Software. Today the industry offers both cloud-based and desktop tms software to help all types of transportation companies to handle growth, increase revenue, and maximize profits.

How Does TMS Software Work?

TMS Software ensures that critical information flows in real-time, throughout every part of the business. From dispatching to accounting, from maintenance to compliance, from billing to driver pay, and everything in between; a TMS provides a single integrated solution, where all essential information related to drivers, customers, equipment, revenue, rates and charges is stored & managed.

Why Does A Trucking Operation Need A TMS System?

A TMS System is key to keep pace with this industry. Many trucking companies and brokers face razor thin profit margins resulting from lack of efficiency and oversights. These are often caused by manual processes they have relied upon for years, with growth, the tasks of entering data manually and in multiple locations is too much to keep up with.

What are the key features of a transportation management system?

When seeking out the best TMS for your trucking company or freight brokerage, be sure to look for features such as:

  • Includes integrated modules for mileage and routing, dispatch, freight billing, revenue settlement/driver advances, accounts receivable, accounts payable, payroll, general ledger, fuel tax, and fleet maintenance
  • Integrated vehicle maintenance and repair module
  • An easy to use dispatch board screen that offers quick access to available loads
  • Quick access to views of available drivers and equipment
  • Customer specific rating
  • Point and click mileage calculation
  • Quick and easy disbursement of driver advances and advance settlements
  • Handles split trips, “drops & hooks,” and combinations
  • Complete trailer movement tracking reports
  • The ability to handle both carrier and customer confirmations
  • The option for either single user or network configurations
  • Powerful interfaces with popular accounting software packages such as QuickBooks, Sage, Simply Accounting, and others,
  • Hours of Service (HOS) Module
  • Robust integrations to popular ELD solutions such as Omnitracs, PeopleNet, KeepTruckin, Rand McNally, Fleetmatics, etc.

What are the top benefits of a transportation management system?

A good TMS will provide the following benefits to your organization including the ability to:

  • Dramatically simplify your dispatch functions and improve your level of customer service.
  • Allow you to quickly quote rates to both potential and existing customers.
  • Print freight bills and handle driver advances and revenue settlement.
  • Track all your trucks, drivers, and loads so you know where they are at all times.

What extensions and integrations should a transportation management system include?

Your chosen transportation software solution should have the ability to grow along with your trucking business. Seeking out the availability of the following integrations will go a long way to ensure that your TMS will be able to meet your needs for the long haul.

  • QuickBooks®Accounting Integration
  • Sage Accounting Integration
  • Fuel Card Interface
  • Load Boards Interface
  • Mobile Communications
  • Commissions Reporting
  • Document Imaging
  • Internet Shipment Tracking
  • EDI (Electronic Document Interchange)
  • DriveAxle®Integration
  • SaferWatch®Integration
  • eFax®Integration
  • Macropoint Integration
  • ELD (Electonic Logging Device) Integrations with popular providers such as Omnitracs, PeopleNet, KeepTruckin, Rand McNally, Fleetmatics, etc.

What requirements are necessary when shopping for a tms software system that will handle my combination carrier and freight brokerage business?

There are many ways to run a brokerage business: you may be running operations for both businesses out of one office with dispatchers who work for both companies; perhaps you have two separate databases within one office; perhaps you have entirely separate operations or offices for each business; or perhaps you are somewhere in between. However you choose to organize your business, your TMS should be flexible to adapt to it.

Intelligence: After entering a load into the system, the TMS automatically “knows” whether your own truck was assigned to that load and whether it should be attributed to your carrier or brokerage business.

Speed: If you choose to enter all loads into your brokerage company database, then mark to haul some loads yourself, a flexible TMS can automatically send that information to your carrier database and automatically complete subsequent accounting steps.

Reporting: With a TMS that knows how you operate your specific businesses, you can run accurate reports in minutes instead of hours.

Integration: With the flexibility to integrate with other business systems, such as your accounting software, a TMS can reduce data entry errors and speed up reporting to happen in minutes instead of hours.

Choices: Some vendors offer on-premise or cloud-based TMS options that add further flexibility as to how you

implement and leverage your infrastructure.

How do government regulations impact my selection of a transportation management system?

It is critical that your chosen TMS solution have a standout reputation for quality control and customer service with regard to DOT Government Regulations. The provider should have an fine-tuned process of delivery for product updates that reflect changes to the ELD Mandate and Hours of Service, IFTA Fuel Tax Reporting, Driver Management, DOT compliance and any other government regulation changes that affect the Transportation Industry as a whole. These product updates are critical to your transportation company remaining in full compliance with all rules and regulations.