How to Choose the Right Transport Management Software?

XPOLogistics, UPS supply chain management, DHL supply chain, and C.H. Robinson Worldwide to name a few are on the list of top logistics and transportation service providers worldwide. Logistics automation is supporting these top-level transportation companies to lead the market. The companies’ adoption of automation and digital transformation is proof of how the world is […]

Updated 8 March 2024

Ajay Kumar
Ajay Kumar

CEO at Appventurez

XPOLogistics, UPS supply chain management, DHL supply chain, and C.H. Robinson Worldwide to name a few are on the list of top logistics and transportation service providers worldwide. Logistics automation is supporting these top-level transportation companies to lead the market. The companies’ adoption of automation and digital transformation is proof of how the world is driven by technology and automation.

Taking the same thread of transportation and logistics management, there is a one-hyped word called transportation project management software. Though hyped it is the TMS software that eliminates the need for an extensive number of teams for monitoring, managing, and tracking deliveries. Transport management software is meant for managing both inbound and outbound logistics operations and management.

As mentioned logistics and transportation business is large and managing everything through a pre-existing TMS is a little challenging as deliveries are eventually getting more surged. This makes businesses come up with questions like either going ahead with a tailored transportation management system TMS as per their needs or opting for any commercial solution.

Keeping these questions in mind while attending to the need of how to choose the right transportation management system, here is the blog explaining everything about TMS and how to get started with one.

What Is A Transport Management System TMS?

Transport Management System TMS is a logistics platform using modern technology to help businesses plan, execute, optimize, and track the movement of goods, either when receiving or sending. For the receiving and sending of the goods, proper documentation and information are required for the completion of delivery. TMS is considered the core part of large supply chain management (SCM) systems. 

A few top names in the world of logistics and transportation are- 

  • C.H. Robinson Worldwide
  • Penske Logistics
  • FedEx Logistics
  • XPO Logistics Inc
  • UPS Supply Chain Solutions

Who Uses Transport Management System TMS?

Transport Management System TMS is used by the business for sending and receiving goods and freight including- 

  • Manufacturers
  • Distributors
  • Retail businesses
  • eCommerce companies
  • Third-party and fourth-party companies offering TMS services

Transport Management System TMS- The Categories Divided

Not just understanding how to choose the right transportation management system, it is also crucial to be aware of the options available under TMS if you are getting started with it. 

The available options are- 

  • On-premises TMS
  • Cloud-based TMS
  • Custom logistics app development

Let’s understand these transportation project management software in detail-

On-Premises TMS

On-premises TMS can be installed and run locally on the hardware, the TMS software is installed at the company’s headquarters. The On-premises TMS offers a great number of transport management software features like- 

Security

Security lets one have control over all the data a firm has with no third-party access to it. The data though is stored locally in-house which makes on-premises solutions vulnerable to cyber attacks, or any mishappening that might result in loss of data. 

Functionalities

On-premises optimization software provides transport management software features for a fixed price. The functionality sometimes makes the whole process a little complex. The software associated with it can be customized, however, it requires reliability from the experts working outside along with showcasing support-related issues too.

Scalability

For scaling on-premises TMS, one will be required to purchase additional hardware. If in case, you are willing to expand your business to another location, you need to purchase new hardware and software.

Cost

On-demand premises do not require one to pay every month to use the software. However, there is a significant cost associated with hardware and ongoing maintenance costs. Upgradation cost also has to be taken every time one wants a new version.

Data Exchange

For data exchange between departments and offices in different locations is challenging and requires additional software for remote access. On-premises transportation management system TMS cannot be operated when employees are working remotely.

Cloud-Based TMS

Cloud-based TMS offers transport management software features

Security

Security is the first thing when it comes to cloud services including regulatory compliance, and data encryption. However, using cloud services, controlling the data relies upon the third party. Also,  you will be requiring the latest version of the provider’s software application. 

Functionality

Transport management software features come decked up with cloud offering businesses the opportunity to cover all their requirements. Also, there are chances when other vital features go hand in hand creating a challenging environment to choose the right feature as per business.

Scalability

Using SaaS, scaling the application is possible which is further handled by SaaS providers. The cost might vary depending upon app scaling. 

Data Exchange

Cloud-based TMS software can be integrated with external Warehouse Management Systems (WMSs), proprietary solutions, and invoicing systems, for data exchange. 

Cost

Companies providing third-party logistics software offer subscription-based business models asking for monthly prices. Other than that, TMS providers also offer payment plans based on the functionalities required. 

Custom Logistics App Development

There is already the best TMS software for brokers, the best TMS software for carriers, and ready-made solutions available, however, there are companies who tend to create their own TMS solutions. 

Clad with some pitfalls too, these custom logistics app development carries their set of benefits too like- 

Functionality

When doing transportation management system development, businesses can opt for only transport management software features they want while creating a simplistic interface using in-built onboarding. 

Data exchange

Through custom APIs during transportation management software, businesses can exchange information in a standard data format with other resources like enterprise resource planning, stakeholder management, and other software solutions within the organization.

Security

The custom TMS solutions make businesses the owners of the product while ensuring no external party or third party gets access to the data. 

Scalability

After highlighting the necessity of scalable application building, it should be put in the software architecture, otherwise, it will be difficult to scale the solution correctly.

Cost

Other than how to choose the right transportation management system, it is also crucial to know the initial investment for building the system. The cost of building a customized system though is a little higher as compared to the monthly subscription cost.

Understanding the core of the transportation management system TMS, it is now time to have a look at the features it too. 

Top Transport Management Software Features

Price Calculators

For calculating the cost of fuel, wages given to the drivers, vehicle costs, and depreciation amounted to the vehicle (in case of own), price calculators should be there in TMS. Also, many times, prices are higher on some days, weeks, or months, thus, a price calculator should have the intelligence to calculate these amounts too. The price of delivery should be calculated easily for users too.

Load Planning

Load planning is a time-consuming task for a company loading and shipping goods and freight. A transportation management system TMS thus minimizes the process within a few minutes through algorithms. 

By adding filters, one can filter things like a warehouse, order type, route, commodity grow-up, account, delivery date, and others. From the users’ side, constraints like pickups, delivery dates, tracking, and others can be managed too. 

set up delivery

Route Planning

It is quite apparent, that wrong routes or poor routes result in higher fleet costs. Thus, to save those extra costs, route optimization is essential. Through route optimization, truck loading, and multi-stop schedules can be efficiently done.

Shipment Tracking

Shipment tracking is the best thing to track the shipments that help in identifying and solving problems related to delivery that usually affect customers. Also, offering offline capabilities is the best thing that helps users to track the movement of goods. 

From the side of the truck or freight carrier drivers- when a truck enters the poor connectivity zones or no connectivity area, offline mode helps them in reporting the delivery status to the business and also to the user. 

Integration With Other Software

The Transport management system software should have the ability to integrate with other software products. This helps in ensuring business continuity. It can be integrated with CRM systems, accounting software, and warehouses, along with the option of payment gateways. 

Other than that, the TMS software can also track documents and meet the needs of the users along with supporting languages and handling both metric and imperial units.

Modules For Transport Management Software TMS

Distributed Order Management (DOM)

The basic OMS software is capable of managing order fulfillment through a limited number of channels both way- online and offline. However, when it comes to managing several storefronts and warehouses, a single TMS system cannot take the load for all the orders. This will result in wrong and delayed deliveries along with poor customer service and fleet time mismanagement. 

To eliminate such issues, Distributed Order Management (DOM) is meant for managing order deliveries, allocation, and distribution to various systems. 

DOM offers businesses- 

  • Multiple order placement through channels that can be brought into one place
  • Offers a holistic view of inventory management
  • Provides instant updates to the order status
  • Manages complex customer requirements

distributed order management

Exception Management

Exception management takes care of all the unexpected or exceptional situations that require a responsible person to handle the situation. 

The unexpected or unusual situation can still be managed in small firms however, the situation gets adverse when it comes to large businesses managing more than a hundred shipments a day. To solve the issues there, a subsequent amount of time is required.

To overcome unexpected incidents, Exception management software takes care of managing time in several ways-

  • With the help of a CRM system, managers can see the status of inventory and in the case that requires support can solve the query instantly
  • Through reporting functionality, managers can be informed about issues during transportation in case of an unexpected incident
  • Rules meant for managing exceptions ensure efficiency in logistic processing through context-based solutions

logistics exception management

Getting the understanding of transportation project management software, let us now move to the next section of the blog showing the cost of developing TMS software. 

How Much Does It Cost To Develop A TMS vs Ready-Made TMS?

cost of custom tms

Custom TMS solutions cost a little less for a longer period, however, the initial phase of the software might be economical but as and when features and requirements change, the cost of it will also change or increase. 

So if you are willing to have TMS software for your inventory management and fleet management, we, the leading mobile app development company, can help you.

Meanwhile, here are a few Top TMS solutions for businesses available- 

Top TMS Software Solution For Businesses

  • 3Gtms
  • BluJay
  • Cloud Logistics
  • Descartes
  • JDA
  • Kuebix
  • Manhattan
  • MercuryGate
  • Oracle
  • SAP
  • TMC
  • TMW
  • Transplace

top tms software

Now that you have reached the end of the blog, there are still things you should consider before getting started with transportation project management software.

How To Choose The Right Transportation Management System?

Know Your Business

To begin with, transportation project management software is to know your company will be leveraging the features of TMS. Understanding what and how your business works will further provide you with the gist to create a solid working foundation.

Here are a few things you should look at 

  • The transportation mode the company will ship with
  • The total number of shipments managed by your firm
  • Can you serve multiple locations?
  • If there are ample numbers of people who can manage multiple shipping processes

Know Your Goals

After knowing your business, focus on understanding your final goals. By getting an understanding of your goals, you can opt for the right TMS solution. Prepare yourself with questions like- 

  • Check out if you need a complex TMS solution for handling a huge fleet and inventor or you want to go ahead with a user-friendly TMS for non-technical users
  • The TMS solution you will be picking can fulfill your growing business needs or not
  • The cost required for TMS implementation
  • How much time will be required to learn the system
  • If you need to integrate internal systems too

Understanding The Market

Without understanding the market and the TMS service providers, you will never be able to end with the right destination. Thus, get a closer look at the market and see how it is offering what and at how much spending. Once you are aware of all this, you can simply eliminate those who will not be offering the required transport management software features. 

Understanding The Apt TMS 

After the completion of all the research and views, you can simply nod yes to the best TMS service provider. Now, you will be required to look for the specific TMS solution to make things more fluent and smooth. 

Meanwhile, here are a few questions you should look at and answer- 

  • The client testimonial for the given TMS along with the user’s feedback
  • If the TMS will work nicely with the team 
  • If you will be getting any additional benefits from the TMS community
  • Know if the TMS is user-friendly and provides you with a nice and decent UI too
  • Can the TMS you will be investing in bringing you great ROI
  • The TMS has the potential to grow as and when your business grows too
  • If you can manage all the modes of transportation through the given TMS

This is the end of the blog about how to choose the right transport management software for your business. In case of any doubt or if you would like to discuss something more in detail, connect with our experts today!

Mike rohit

Consult our experts

Elevate your journey and empower your choices with our insightful guidance.

    6 + 2

    Ajay Kumar
    Ajay Kumar

    CEO at Appventurez

    Ajay Kumar has 15+ years of experience in entrepreneurship, project management, and team handling. He has technical expertise in software development and database management. He currently directs the company’s day-to-day functioning and administration.