Transportation Management Systems or TMS is proving its worth as a complete shipping technology and analytics tool in this ever-changing, omni-channel shipping market. Used to manage a shipper’s scheduling, routing, provider selection, load tendering, and shipment merging features, the transportation management system shipping technology is seen to be a possible solution to: provider volume issues, the looming driver shortage, and handling customer expectations. Once you’ve completely optimized the your TMS technology, it’ll be of immense value to your business.

However, while transport management solutions have been available for some time now, not very many companies have implemented them and used them to their full benefit. Industry surveys find these shipping technology systems are used in logistics and supply chain management solutions by not even half of transportation management operations. A lot of TMS systems are turning to the cloud, which will make it more obtainable for mid-sized companies throughout the industry, which is great news for them.

One of several key selling points for transportation management systems is their proven ROI. By way of better procurement negotiations, lowest-cost mode selection, and increased use of best providers can help TMS users save considerably on freight transportation or parcel shipping spend.

Introduction of several cloud-based platforms which are currently available on the market has motivated more companies to take on the TMS. Because of SaaS (Software as a Service) TMS shipping software models businesses with just a million dollar budget for freight or parcel shipping spend have the ability to make use of a transportation management system for logistics solutions, when in the past this software could only be afforded by shippers with close to 20 million dollars in shipping spend.

Increased data analytics and auditing abilities, greater visibility and mobility, and trends in various logistics management optimization methods are just some of the progress we might see as shipping technology like transportation management systems begin to improve and progress.

Its moment has come

For years only companies with over one hundred million in annual freight spend demonstrated affinity for TMS shipping software originally. By means of on-premise transportation management systems, these companies had more efficient supply chain management methods and shipping software to better transport their freight across the country.

Currently, however, its time has come to be noticed even by companies with moderate shipping expenses. This has induced an outpour for companies like JDA, SAP, Oracle, and Manhattan – all of which in the past would cater only to larger users.

The advance in shipping software markets has established a gap in the mid-market range waiting to be filled. Online transportation management systems with the SaaS model can link shippers paying around 20 million dollars per year doing 20 deliveries daily to its carriers, and even plan paths, and boost shipping with load consolidation.

Coming next

Using the craze of these transportation management systems relocating to the cloud, more opportunities have emerged for moderate to midsized shippers to use the system in order to strengthen overall supply chain management and offer superior customer service.

SAP and Oracle starting to relocate their systems to the cloud says a lot for the path of the transportation management system industry.

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