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A Transportation Management System (TMS) is a subset of supply chain management concerning transportation operations, which may be part of an enterprise resource planning (ERP) system.
A TMS typically acts as an intermediary between an ERP or legacy order processing and warehouse/distribution module. In this setup, the TMS Planning Module evaluates both inbound (procurement) and outbound (shipping) orders, providing the user with suggested routing solutions. The user reviews these suggestions and selects the most reasonable option, which is then passed to the transportation provider analysis module. This module determines the best mode of transportation and the most cost-effective solution. Once the optimal option is chosen, an electronic load tendering and track/trace system is used to execute the shipment through the selected carrier. The TMS also supports freight audit and payment processes. Integration with ERP systems (once orders are transformed into shipments) and sometimes with Warehouse Management System (WMS) programs are also commonly linked to ERP.
These systems have been offered with different types of licensing arrangements. The four main offerings are:
Additionally, some software providers were either acquired or merged with supply chain management consultancies and started offering shippers "blended" managed and software services as an outsourced process. Primary Tier 1 TMS providers are still independent, carrier and 3PL neutral, and ERP neutral. While ERP providers are moving to improve their on-premises transportation management offerings by adding TMS modules to their existing, implemented base, the advent of Software-as-a-Service or "SaaS" delivery resulted in a surge of emerging TMS providers.
Transportation management systems manage four key processes of transportation management:
Various functions of a TMS include:
However, all the above logistical functions need to be scrutinized as to how each parameter functions.
Gartner predicts the global transportation management system market to grow 60% from $1.3 billion in 2019 to $2.1 billion in 2024. [1]
Enterprise resource planning (ERP) is the integrated management of main business processes, often in real time and mediated by software and technology. ERP is usually referred to as a category of business management software—typically a suite of integrated applications—that an organization can use to collect, store, manage and interpret data from many business activities. ERP systems can be local-based or cloud-based. Cloud-based applications have grown in recent years due to the increased efficiencies arising from information being readily available from any location with Internet access.
Freight transport, also referred to as freight forwarding, is the physical process of transporting commodities and merchandise goods and cargo. The term shipping originally referred to transport by sea but in American English, it has been extended to refer to transport by land or air as well. "Logistics", a term borrowed from the military environment, is also used in the same sense.
Logistics is the part of supply chain management that deals with the efficient forward and reverse flow of goods, services, and related information from the point of origin to the point of consumption according to the needs of customers. Logistics management is a component that holds the supply chain together. The resources managed in logistics may include tangible goods such as materials, equipment, and supplies, as well as food and other consumable items.
In transportation, freight refers to goods conveyed by land, water or air, while cargo refers specifically to freight when conveyed via water or air. In economics, freight refers to goods transported at a freight rate for commercial gain. The term cargo is also used in case of goods in the cold-chain, because the perishable inventory is always in transit towards a final end-use, even when it is held in cold storage or other similar climate-controlled facilities, including warehouses.
Cross-docking is a logistical practice of Just-In-Time Scheduling where materials are delivered directly from a manufacturer or a mode of transportation to a customer or another mode of transportation. Cross-docking often aims to minimize overheads related to storing goods between shipments or while awaiting a customer's order. This may be done to change the type of conveyance, to sort material intended for different destinations, or to combine material from different origins into transport vehicles with the same or similar destinations.
A warehouse management system (WMS) is a set of policies and processes intended to organise the work of a warehouse or distribution centre, and ensure that such a facility can operate efficiently and meet its objectives.
Truckload shipping is freight transport in which a semi-trailer or intermodal container is filled entirely with one type of cargo. It differs from less-than-truckload shipping (LTL) in which freight from multiple customers is combined in one trailer. A truckload carrier is a trucking company that contracts entire trailer-load to a single customer.
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A freight forwarder or forwarding agent is a person or a company who co-ordinates and organizes the movement of shipments on behalf of a shipper by liaising with carriers. The carriers may use a variety of shipping modes, including ships, airplanes, trucks, and railroads, and often use multiple modes for a single shipment. A freight forwarder does not move the goods but acts as an agent in the logistics network and will carry out freight consolidation, rate negotiations, shipment tracking, customs and other documentation, among other tasks. FIATA describes a freight forwarder as the "Architect of transport".
On-premises software is installed and runs on computers on the premises of the person or organization using the software, rather than at a remote facility such as a server farm or cloud. On-premises software is sometimes referred to as "shrinkwrap" software, and off-premises software is commonly called "software as a service" ("SaaS") or "cloud computing".
Supply-chain-management software (SCMS) is the software tools or modules used in executing supply chain transactions, managing supplier relationships and controlling associated business processes. Supply chain management maximizes the efficiency of business activities that include planning and management of the entire supply chain. It helps businesses in product development, sourcing, production, and logistics by automating operations. In this way, it increases the physical flow of business as well as informative flow. The entire business benefits with higher performance, greater cost-efficiency, and thus increased supply chain efficiency.
Trailer Bridge, Inc. is a freight service company headquartered in Jacksonville, Florida. They offer international and domestic shipping with primary international calls to San Juan, Puerto Rico and Puerto Plata, Dominican Republic.
A talent management system (TMS) is an integrated software suite that addresses the "four pillars" of talent management: recruitment; performance management; learning and development; and compensation management.
By definition an audit is,
Third-party logistics is an organization's long term commitment of outsourcing its distribution services to third-party logistics businesses.
ERPNext is a free and open-source integrated Enterprise resource planning (ERP) software developed by an Indian software company Frappe Technologies Pvt. Ltd. It is built on the MariaDB database system using Frappe, a Python based server-side framework.
There are, in essence, three kinds of Cloud printing.
FreightCenter is a privately owned, non-asset based 3rd-party logistics provider (3PL) with headquarters in Palm Harbor, Florida, United States. FreightCenter acts as a conduit between freight carriers and commercial or residential shippers located in the United States and Canada. As a conduit, shippers use the provider's online freight quote calculator to calculate freight costs for less than truckload, truckload, rail, ocean and air freight.
A training management system (TMS), training management software, or training resource management system (TRMS) is a software application for the administration, documentation, tracking, and reporting of instructor-led-training programs. A TMS focuses on back-office processes and is considered a tool for corporate training administrators. A TMS can be a module in enterprise resource planning (ERP) systems. Such a system can form part of the educational technology ecosystem.
A transportation and warehouse management system (TWMS) is a software application that supports eCommerce, distribution, and third-party logistics (3PL) companies within supply chain management.