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Home » The Key Functions of a Supply Chain Transportation Management System (TMS)

The Key Functions of a Supply Chain Transportation Management System (TMS)

April 30, 2020
MPO

In essence, a TMS is leveraged to move products from point A to point B as efficiently and cost-effectively as possible. To succeed in this, an effective transportation management system will provide end-to-end visibility across the entire multi-party network (beyond just logistics providers), as well as multi-modal and container, pallet, and parcel support. Consistent OTIF delivery also requires exceptions management using real-time track and trace visibility with real-time alerts and in-app corrective actions capabilities. Transport planning is an often-overlooked key function of a TMS solution. To take advantage of every opportunity for optimization, your TMS should automate key fulfillment concerns, such as efficient and cost-effective sourcing, routing, and carrier selection based on each individual order’s service requirements. Financial and analytic functions are also vital to cost control and continuous improvement. A robust TMS solution will offer rate and invoice management and allow you to set and track performance KPIs.



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