Transportation management system (TMS)
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is TMS?
A transportation management system (TMS) is software for planning, booking and tracking shipments, including carrier choice, routing and freight rates. It also checks freight bills; distributors with their own trucks use it mostly for routing, and those that ship by carrier use it to find the best rate and service.
TMS example
The TMS groups the next day’s 140 deliveries into nine truck routes and books two LTL shipments with the cheapest carrier that can meet the delivery dates.
Related terms
- Warehouse management system (WMS)A warehouse management system (WMS) is software that directs and tracks the work inside a warehouse, from receiving and putaway to picking and shipping.
- Less-than-truckload (LTL)Less-than-truckload (LTL) is a freight service for shipments too large for parcel carriers but too small to fill a truck, typically one to several pallets.
- Freight termsFreight terms are the part of a sale that says who pays for shipping and how the cost is billed.
- Proof of delivery (POD)Proof of delivery (POD) is the record that a shipment reached the customer, such as a signature, photo or timestamp captured by the driver or carrier.
