TMS system combines various modules that help handle transportation business. These can be essential functions such as route transportation planning or more custom-defined features such as container load planning embedded in TMS as one of features. All these functions should help with the smooth management of deliveries across the supply chain.
Gartner further explains transportation management systems (TMS) as software that enables multimodal planning and execution of goods transportation throughout the supply chain. TMS allows companies of all sizes to manage complex shipments across modes and regions. Gartner analytics reveal that 87% of shippers have sustained or increased tech investments since 2020, with 93% planning to continue this trend over the next three years.
In this article, we share the basic features of a transportation management system (TMS) system with you, and we close up on the more extended version of a TMS system you can get with custom software. We'll share our experience on built-in TMS modules, from shipping document management to a mobile app for truck drivers. These are not the only modules we build for transportation companies. Find out more about what is valuable for transportation and supply chain in 2025. Let's buckle up!
What are TMS modules and what are most critical?
TMS modules are, in other words, transport management system features that allow performing specific tasks to improve performance. The case example we can take is from UPS, which uses the TMS system Mercure Gate, as many other supply chain companies do. This transportation management system (TMS) was created to schedule the booking of certain shipments and send automatic EDI to carriers of their choice for certain directions. MG allows getting frequent reports on cost and tonnage and, at the same time, handling financial cases on invoicing and invoice dispute resolution.
Mercury Gate's modules concern document management and carrier communication to improve smooth business operations. McKinsey's research highlights cost as the primary challenge for shippers (68%) and providers (80%) in transportation transformations. This trend extends to warehousing, where cost remains a major concern for both groups. Consequently, tightly integrated transportation management systems (TMS) modules offer a practical solution by significantly reducing transportation costs.
The most important modules in the transport management system (TMS) we can consider such as route optimization, carrier management, load planning & consolidation, shipment information tracking & visibility, freight auditing & payables.
Top 10 modules in the transport management system (TMS)
We need to go straight to the point to stop beating and beating around the bush. It's time to get closer to the transportation management systems (TMS) and their capabilities.
1. Route optimization
Route optimization focuses on finding the most efficient delivery routes by minimizing distance traveled, fuel consumption, and driver hours. Key features include real-time traffic updates, the ability to optimize routes with multiple stops, dynamic route adjustments based on real-time conditions, and intelligent driver scheduling to maximize efficiency and minimize costs.
2. Carrier management
Carrier management focuses on effectively managing relationships and contract management with carriers throughout the transportation process. It includes critical functions such as sourcing and onboarding new carriers, negotiating competitive rates, monitoring carrier performance, and ensuring efficient payment processing. Key features supporting these functions include streamlined carrier onboarding processes, tools for negotiating and tracking rates, performance scorecards to evaluate carrier performance, and efficient payment reconciliation systems.
3. Load planning and consolidation
The eCommerce market is experiencing significant growth, with projections indicating a significant increase from the current $3.3 trillion to $5.4 trillion annually by 2026 (Stanley, 2022). This increase in online commerce relies heavily on home delivery services, increasing the need for efficient and cost-effective logistics solutions. Major players such as UPS and FedEx are constantly striving to optimize their networks to meet the changing demands of e-commerce customers. Transportation management systems (TMS) play a central role in this process by improving load utilization through the consolidation of shipments, maximizing truck space, and minimizing empty miles. Key features of TMS include order management, advanced shipment consolidation rules, advanced load-building algorithms, and robust capacity transportation planning tools.
4. Shipment tracking and visibility
The global track and trace solutions market is poised for significant growth. This figure is expected to surge to 4.8 billion dollars by 2029, driven by the increasing demand for real-time visibility into shipment movements. Key features of these solutions include GPS tracking, real-time alerts, estimated time of arrival (ETAs), and proof of delivery, enabling businesses to monitor the location, status, and potential delays of their shipments across all modes of transport.
5. Freight auditing and payables
As a complete solution to reduce freight and staffing costs, the TMS solutions involve a comprehensive transportation management system (TMS) with optimization tools, as ARC Research indicates, which can yield 5-11% savings. This solution focuses on automating freight invoice processing, identifying and resolving discrepancies, and streamlining payment processes, leveraging key features like invoice matching, automated payment processing, exception reporting, and audit trails for enhanced efficiency and accuracy.
6. Asset management
Transportation asset management (TAM) encompasses strategic and systematic processes for optimizing physical assets' operation, maintenance, and improvement. It integrates engineering and cost analysis based on asset data within the transportation management systems (TMS) module. Furthermore, TAM focuses on efficiently managing the flow of trucks and trailers within warehouses and transportation yards, optimizing space utilization and turnaround times through key features such as gate appointments, yard checks, trailer tracking, and equipment allocation.
7. Warehouse management system (WMS) integration
The new transportation management systems (TMS) allow access to 'uberized' marketplaces and warehouse management systems (WMS), which handle complex distribution center activities such as receiving, put-away, stock locating, and inventory management. WMS can be seamlessly integrated with TMS systems, enabling significant improvements: labor utilization (10–35%), inventory reduction (5–30%), floor space utilization (10–30%), maintenance (0–10%), shrinkage (50–75%), rolling stock (10–20%), shipping accuracy (to 99%+), and data entry accuracy (to 99%+). The focus is on WMS and TMS integration, ensuring a smooth flow of goods between warehouses and transportation, with key features like order management, inventory management, and pick-up and delivery scheduling.
8. Business intelligence and reporting
This feature collects data from various sources, such as databases and spreadsheets, as well as external sources, such as social media and market research. It also enables the company to process and analyze the collected data to identify trends, patterns, and business insights. It can include techniques such as data mining, statistical analysis, and predictive modeling. You can achieve data visualization that presents the analyzed data clearly and concisely, often using charts, graphs, dashboards, and interactive visualizations.
9. Document management
Key features of the document management module include document capture, secure storage, efficient retrieval, and seamless sharing. Our innovative document management system (DMS) solution for the eTEU platform facilitates high-speed transaction processing for high-volume document transfers between stakeholders. It ensures real-time information exchange and maximizes operational efficiency. The DMS mitigates data exploitation risks through robust audit trails, enhancing document authenticity and increasing productivity and transparency across the shipping process. The core focus is on centralized storage and management of all transportation-related documents.
10. Advanced planning and optimization (APO)
Advanced planning and optimization (APO) empowers businesses to develop and execute optimal transportation strategies across the entire supply chain, from raw material sourcing to finished goods delivery. APO minimizes costs and maximizes efficiency by optimizing the utilization of transportation resources, including vehicles, drivers, and warehouses. This proactive approach enables businesses to meet customer demands while minimizing delays and improving delivery reliability. Furthermore, APO facilitates the proactive identification and mitigation of potential disruptions. Among those, we can mention some of them, such as weather events, natural disasters, and geopolitical instability, enhancing overall supply chain resilience.
Custom TMS system and modules development tailored to your needs
Custom transportation management systems (TMS) development gives businesses a significant advantage by delivering tailored solutions that perfectly align with their unique operational needs and processes. Unlike off-the-shelf solutions that may require extensive customization or fail to fully address specific requirements, custom transportation management systems (TMS) development allows for the creation of a system that seamlessly integrates with existing workflows and maximizes operational efficiency. Today, technology advancements, such as continuous integration and continuous delivery (CI/CD), have significantly increased deployment speed, reported by approximately 60% of developers. While the claim of a 90% reduction in development speed, likely attributed to using low-code or no-code tools, might be inaccurate in custom development, the overall development process has become more streamlined. For example, at Adexin, we're using Adexin Tools that enable us to build software quicker and let businesses quickly adapt to changing market demands and gain a competitive edge.
Here are the benefits of custom made TMS system:
Competitive edge. Custom TMS development provides a significant competitive advantage by delivering a solution perfectly aligned with your business needs. Unlike generic software, a custom TMS empowers you with streamlined workflows, accurate predictions, machine learning, optimized routes, and enhanced visibility, enabling faster delivery times, improved customer service, and increased agility in a dynamic market.
Better operational efficiency. Experience a surge in operational efficiency with a custom TMS. Automate repetitive tasks, minimize human error, and optimize resource utilization. This leads to significant cost savings, improved productivity, and a streamlined workflow that empowers your team to focus on strategic initiatives.
Increased visibility and control. Gain complete visibility and control over your transportation operations. A custom TMS provides real-time tracking, in-depth data analysis, and proactive alerts, enabling you to anticipate and address potential issues before they impact your business. It empowers data-driven decision-making and enhances overall supply chain resilience.
Driven down costs. Experience significant cost savings with a custom TMS. Optimize routes, negotiate better carrier rates, and minimize operational expenses. A custom TMS directly impacts your bottom line by streamlining processes and improving efficiency, contributing to increased profitability.
A scalable solution. A custom TMS is designed to grow with your business. It provides the flexibility to easily adapt to changing market requirements, integrate with new technologies, and scale operations as needed, ensuring long-term stability and growth.
Greater customer satisfaction. A custom TMS solution enables you to provide superior customer service. With faster delivery times, better communication, and greater transparency, you can build stronger customer relationships and increase brand loyalty.
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Explore moreFinale takeaway
A custom TMS provides a key advantage in the competitive logistics and transportation market by perfectly adapting to unique business needs and processes. Thus, it helps streamline operations, optimize costs, and provide visibility and control. Remember that a custom transportation management system (TMS) enables an organization to achieve greater efficiency. That's what improves customer satisfaction and gives you a significant competitive advantage.
Get ready to unlock the full potential of your transportation operations with Adexin. Contact us today to learn how custom TMS solutions can transform your transportation business and ensure its success.