Transportation Managements Systems, otherwise known as TMS’s, offer shared solutions to both customers and their partners by integrating large amounts of relevant data in order to come to mutually beneficial transportation decisions. The use of TMS’s has increased dramatically over the past few years, and these systems are able to assist greatly in optimizing a business’s use of transportation. In a nutshell, TMS is able to analyze both inbound and outbound shipments then offer various routing options to the customer. The customer is then able to select their desired routing option and pricing. These solutions are then given to the appropriate transportation provider for the shipment process to occur.

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Often these TMS’s are cloud based, and they are considered to be a Software-as-a-Service (SaaS). A SaaS TMS provides the medium through which customers can find a shared solution online with their business partners. The system is able to leverage the freight payment data that is already available within their systems to optimize shipments through cost savings and improved routing. Once input in the system, these decisions can be benchmarked against other shippers and 3PLs in order to point the customer toward further cost savings.

An SaaS TMS system also has intangible benefits. It is able to break down the siloes that so often ruin collaboration in the work place by providing a central medium for communication and decision-making. It allows for real-time management of transportation providers in one real time portal accessible online from all shipping locations. The multiple inputs from these different areas of the company is able to lead a highly informed decision, and hopefully provide the company with the most value for the cost.

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