TMS features & TMS integration: A complete guide

For businesses of any size, tracking shipments is nearly impossible without a clear, all-in-one view of your transportation network. Small operations might stick to basic spreadsheets and phone calls at first, but when shipments multiply, they need something more powerful. "We continuously invest in technological innovations to optimize port operations and the services we provide for our customers," proves our point Associated British Ports’ CEO, Henrik Pedersen.

Transportation management systems help you track deliveries, choose the best carriers, plan efficient routes, and spot problems before they hurt your business. We will cover the basics of TMS distribution, its main modules and features, and help you make an informed decision on getting the right solution — or building a custom one.

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What is the role of transportation management in logistics?

To fully understand the answer to this question, let’s first answer a different one. What is a transportation management system?

A transportation management system (TMS) is a hub for managing logistics operations and connecting manufacturers, distributors, and customers through digital integrations. It streamlines communication, optimizes transportation routes, and provides real-time shipment visibility. Unlike basic spreadsheets, a TMS connects directly with carriers, warehouses, and customers to create a seamless flow of information and physical goods.

What does a transportation management system do? TMSs handle route planning, carrier selection, shipment tracking, and freight payment. Today's solutions offer TMS integration with other systems like warehouse management and enterprise resource planning software. This creates a complete picture of your operations. But what specific advantages will you get with a TMS, depending on the industry you’re in?

Transportation management system benefits for cost and efficiency

The upsides of implementing a transportation management system fall into three categories as shown in the image: improved customer service, optimized warehouse efficiency, and financial enhancement.

• Сustomer service boost is one of the most significant advantages of a TMS. With real-time tracking, businesses see a 25-30% improvement in on-time deliveries and provide customers with accurate ETAs. This transforms the customer experience, reducing "where's my order" inquiries by up to 65% and boosting satisfaction scores.
• Increased warehouse efficiency occurs when transportation and storage operations work in harmony. TMS implementation reduces dock congestion by 40-50% and cuts loading/unloading times by up to 15%. Warehouses operate smoothly when they know exactly what's arriving and when allowing for proper staffing and resource allocation.
• Cash flow improvements result from better freight spend management and operational efficiencies. Companies typically reduce overall transportation costs by 8-12% through optimized routing and carrier selection. Additionally, automated freight auditing identifies 2-5% in billing errors or overcharges, directly improving your bottom line.

Overall, a TMS tracking system provides real-time visibility that prevents costly surprises. When issues arise — weather delays, traffic problems, or mechanical failures — you learn about them immediately rather than when a customer calls to complain. Financial management is also easier with a TSM. It automates invoicing, payment processing, and freight auditing to ensure you pay the correct amount for each shipment. 

Benefits of transport management system for varied domains

Let’s explore what advantages you get, whether you ship locally or globally, use trucks or trains, move pallets or parcels, or operate in different domains whatsoever. 

• Trucking

What is TMS in trucking? For carriers and fleet operators, this fleet management software acts as a command center that maximizes asset utilization. Trucking companies use TMS to reduce empty miles by up to 23%, optimize driver schedules to comply with hours-of-service regulations, and automate customer billing.

• Manufacturing

Manufacturers rely on TMS to coordinate inbound raw materials with production schedules. This synchronization reduces inventory carrying costs while ensuring production lines never stop due to missing components. The system also helps manage complex outbound distribution to multiple customer locations, often cutting delivery lead times by 10-15%.

• eCommerce and retail

Retailers and eCommerce businesses depend on TMS to deliver on customer promises. The system manages tight delivery windows, coordinates last-mile delivery options, and handles returns logistics. Multi-channel retailers particularly benefit from the ability to optimize inventory movement between stores, distribution centers, and direct-to-consumer fulfillment locations.

• Third-party logistics

What is TMS in logistics for third-party providers (3PLs)? They use TMS as their core business platform. The system enables them to manage transportation for numerous clients simultaneously, each with unique requirements and service levels. Advanced 3PLs use TMS analytics to continuously improve network design and identify cost-saving opportunities for their customers.

• Wholesale and distribution

For distributors and wholesalers, TSMs deliver immediate ROI. By creating efficient multi-stop routes that maximize each vehicle's capacity, these businesses serve more customers per trip while reducing mileage and driver hours. Some report significant fuel savings that bring 30-40% overall logistics cost reduction.

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TMS functionality and architecture overview

In general, a transportation systems management solution follows a four-part framework: plan, execute, track, and analyze. The planning stage handles route design, carrier selection, and load building. Next comes execution, where the system sends instructions to carriers, generates shipping documents, and schedules pickups. The tracking phase monitors shipments from origin to destination, while the analysis component evaluates performance and identifies improvement opportunities.

Modern TMS modules work together like puzzle pieces to form a complete solution. We’ll explore the functionality of these modules in more detail later.

• Route optimization finds the shortest paths while respecting time windows. 
• Carrier management maintains your transportation partner relationships. 
• Load planning maximizes trailer space and minimizes wasted capacity. 
• Document management stores everything from bills of lading to proof of delivery in one searchable location. 

Each module solves specific problems, but they share information seamlessly. This modular approach allows businesses to start with essential functions and add capabilities as they grow. The architecture typically follows either an on-premise model (installed on your servers) or a cloud-based approach (accessed through the internet), with cloud solutions gaining traction due to lower upfront costs and easier TMS implementation.

How does a transport management system integrate with other supply chain software?

No transportation system exists in isolation. The true power of a TMS is evident through TMS software integration with other business applications. 

• The most important connection links your TMS with warehouse management systems (WMS). This integration ensures that as orders are picked and packed, transportation teams know exactly what's shipping, its dimensions, and when it's ready. Similarly, when inbound deliveries approach, warehouse teams receive advance notice to prepare to receive docks and staff.
• Enterprise resource planning (ERP) systems provide another critical integration point. Your ERP contains master data about products, customers, and vendors that the TMS needs for accurate planning. When orders get entered in the ERP, they flow automatically to the TMS for transportation planning. Once shipments are complete, delivery confirmations and freight costs flow back to the ERP for invoicing and financial reporting. 

Additional TMS integrations might include connections to yard management systems, freight audit, and payment providers, or customer portals. Each integration eliminates manual data entry, reduces errors, and speeds up processes.

Comprehensive transport management system documentation captures these integration points, defining how data flows between systems and establishing clear ownership for each process step. This documentation proves invaluable during system updates or when troubleshooting issues across your supply chain technology ecosystem.

Warehouse and transportation management system: How does it work?

When managing your supply chain, two powerful tools often work side by side: transportation management systems and warehouse management systems. Understanding the difference between TMS vs WMS is very important here. Though related, they serve distinct purposes in your logistics operations. A warehouse and transportation management system might sound like a single solution, but they typically function as separate yet complementary technologies.

• A WMS is a type of eCommerce stock management software that tracks inventory locations, manages pick paths, organizes labor, and ensures efficient storage. When a customer places an order, your WMS determines where those products are located, and the efficient ways to retrieve them and prepare them for shipping.
• Meanwhile, your TMS focuses on everything that happens once goods leave your warehouse doors. Core TMS features include selecting the right carriers, building efficient loads, planning optimal delivery routes, tracking shipments in transit, and managing transportation costs.

A properly integrated WMS and TMS solution creates a continuous flow of information that eliminates gaps between facility operations and transportation activities. For example, when warehouse staff complete picking an order, the WMS alerts the TMS about the pending shipment. The TMS then applies load plan optimization algorithms to determine a cost-effective way to transport the goods. 

This integration extends to your ERP system transport modules as well. Your ERP contains master data like customer information, product details, and accounting records that both warehouse and transportation systems need. When all three systems (WMS, TMS, and ERP) work together, you gain complete visibility across your supply chain.

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Features of a transport management system

A comprehensive transportation system management solution brings together planning, execution, and visibility features to form a seamless data flow across the supply chain.

Transportation planning features

Modern transportation management system features are the basis of effective logistics operations. Planning tools lead the way, helping you map out efficient movement of goods. 

• Order management

Transport order management system features ensure shipments begin with proper documentation and instructions. These systems allow manual and automatic order entry, accounting for commodity types, weights, pickup locations, and destinations and generate optimal routes while connecting orders with available transportation resources. These orders appear on dashboards where planners and drivers view workload and documentation.

• Tendering features

Tendering features simplify carrier selection and load assignment. A TMS automates the process of offering loads to carriers based on your preferred strategy. Some businesses prioritize the lowest cost, while others focus on carrier performance or customer preferences. Advanced systems can mix strategies based on lane, commodity type, or other factors to ensure each shipment follows the most appropriate tendering approach.

• Shipment rate management

Shipment rate management tools calculate transportation costs using advanced rate engines. They store contracted rates, carrier tariffs, accessorial charges, and discount structures to generate accurate quotes. When customers request pricing, the TMS applies all relevant rules automatically, eliminating manual pricing errors. This capability in multi-carrier transport management systems with complex structures across carriers and transportation modes.

• Load planning

Load planning features help maximize trailer utilization and minimize wasted space. With package dimensions, weights, and stacking restrictions, these systems create efficient loading plans that fit more freight into each vehicle. Some advanced platforms offer 3D visualization tools where planners can see the proposed cargo arrangement and make adjustments. This feature cuts costs — you simply need fewer vehicles to move the same amount of freight.

So with TMS transportation software, you know exactly what vehicles to use, and how much to load them, and also make sure your orders are processed immediately without any delays or mistakes. What happens next?

Transportation execution features

Once planning is complete, execution features guide each shipment through its journey from origin to destination, ensuring smooth operations throughout the transportation process.

• Fleet management

Fleet management tools give visibility and control over owned or dedicated assets. These features track equipment maintenance schedules, manage driver assignments, monitor hours-of-service regulations compliance, and optimize dispatch. While not every TMS offers comprehensive fleet management, even basic capabilities help streamline operations by bringing vehicle and driver information into the same system that manages freight movements.

• Dock and yard management

Dock scheduling and yard operations features coordinate loading and unloading to minimize wait times and maximize throughput. By integrating with warehouse management systems, these tools create schedules that account for both facility constraints and transportation requirements. Drivers receive specific appointment times rather than showing up whenever they arrive, reducing congestion and improving labor utilization. 

• Documentation management and settlement

Documentation management and settlement features automate the paperwork-intensive aspects of transportation. Digital bills of lading replace paper documents, electronic proof of delivery captures signatures on mobile devices, and automated invoicing speeds the payment process. Also, the TMS gateway payment functionality connects with accounting systems to process carrier payments. These capabilities reduce administrative costs and drive efficiency.

Whether you're managing a small regional operation or a global logistics network, the right TMS helps you turn your fleet management into a much simpler, and yes, more profitable process. And more transparent — which we will talk about next.

Transportation visibility features

The final category of TMS features provides the transparency and insights needed to manage logistics operations effectively and continuously improve performance.

• Connectivity features

Connectivity portals extend system access to customers, carriers, and other external partners. These secure web interfaces allow customers to place orders, check shipments, and retrieve delivery information. Similarly, carriers accept tenders, provide tracking updates, and submit invoices through the same portal. By creating this environment, you reduce the administrative burden on internal teams while improving the experience for external stakeholders.

• Route management

Route management and optimization tools analyze transportation networks to identify better movement patterns. While basic routing focuses on individual shipments, advanced analytics examine historical patterns to recommend network-wide improvements. They suggest consolidation opportunities, identify underutilized lanes, or recommend mode shifts to reduce overall transportation costs. 

• Tracking, tracing, and event management

These features provide real-time visibility into shipment status. Using GPS technology, telematics devices, and electronic logging devices, these systems monitor vehicle locations and movements throughout the journey. RFID and barcode scanning capture detailed information as freight moves through cross-docks and distribution centers. When exceptions occur, the system alerts relevant stakeholders so they can respond proactively.

• Business intelligence and analytics

Analytical capabilities turn scattered transportation data into actionable insights. Custom dashboards present key performance indicators, highlighting trends and exceptions. Report generators allow users to analyze data from multiple perspectives — by the carrier, by lane, by the customer, or by the product. These tools help identify opportunities for improvement, measure the impact of process changes, and quantify the TMS implementation value.

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Connecting the dots in your logistics through TMS integrations

Modern businesses thrive on connectivity, and your transportation management system is also meant to work in conjunction with other supply chain components.

• ERP integration

Your enterprise resource planning system is the basis of your operation. Linking it with your TMS creates a seamless flow of order details directly into your transportation planning. This connection eliminates double-entry headaches and ensures your shipping decisions align perfectly with inventory levels and customer demands. The benefit of an integrated transport management system is this harmonious data exchange.

• WMS integration

Your warehouse and transportation teams are working in perfect sync — that’s exactly what happens when you connect your WMS with your TMS. Loading schedules become optimized, pickups get coordinated efficiently, and your entire fulfillment operation transforms into a well-oiled machine. This integration creates visibility from shelf to delivery, boosting productivity.

• External carrier and third-party logistics integration

Building digital bridges to your transportation partners eliminates communication gaps. When your TMS connects with carrier systems, load details flow effortlessly, status updates arrive automatically, and documentation exchanges happen without email chaos. This transparent partnership reduces the administrative burden on everyone involved.

• Freight marketplace integration

For 3PLs and owner-operators, connecting your TMS to digital load boards introduces remarkable efficiency. Rather than toggling between systems, you'll spot opportunities directly within your transportation platform. This integration helps maximize vehicle utilization and minimize empty miles – critical factors in maintaining profitability in transportation operations.

These integrations are important to get the power of TMS optimization to truly work for your business. But how does this integration happen?

API and cloud-based connectivity for seamless data exchange

To use advanced transportation management systems, you need to implement modern connectivity methods. Let's explore how APIs and cloud solutions make transportation management connected and efficient. Here’s how API connection improves data exchange and brings incredible results:

• Without API integration, your team drowns in order entry tasks. With integration, orders flow automatically into your transportation system with validation against business rules. This improves accuracy – a remarkable productivity boost for your logistics team.
• Manual dispatching leads to inefficient routes and unhappy drivers. Integrated systems use algorithms to assign the right loads to the right vehicles, considering countless variables simultaneously. 
• Manual tracking updates leave customers in the dark. API systems provide continuous location data, arrival predictions, and exception alerts. This transparency builds trust with customers while alerting your team about potential disruptions before they happen.
• Billing accuracy grows through system integration. Rates, accessorials, and surcharges flow automatically into invoices with no disputes. Your finance team spends less time on transportation costs and more time on strategic financial management.
• Integrated systems deliver supply chain analytics for different roles. Executives see macro performance trends, and operations teams access execution metrics. This information access ensures everyone acts based on current data.
• Perhaps the most valuable integration benefit lies in customer satisfaction. When systems connect seamlessly, your team provides faster quotes, more accurate delivery promises, and transparent tracking information. 

Cloud-based transportation platforms offer flexibility, allowing team members to manage shipments from anywhere. Beyond accessibility, cloud systems eliminate hardware headaches, reduce IT staffing requirements, and provide disaster recovery. The quick implementation and automatic updates ensure you have the latest capabilities without disruptive upgrade projects.

The ROI from a cloud-based, fully integrated transportation management system comes quickly through reduced manual effort, improved decision-making, and enhanced service levels. By using cloud-based TMS implementation through strategic integrations, your transportation operation transforms from a necessary cost center into a competitive advantage, driving customer satisfaction and operational excellence.

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Best transport management systems

Now that you understand the principles, modules, and features of TMSs, it’s time to pick your dream solution. Let's explore some standout options in today's marketplace to make the right decision. These most popular TMS systems offer compelling features worth considering for your business.

• Oracle Transportation Management (OTM).

Giants in the enterprise software world, Oracle TMS has optimization algorithms that continuously analyze routes, carriers, and costs. While the learning curve is harder than some alternatives, and the pricing is high, you get great visibility and control. The system boasts financial management with great freight audit and payment functionality that many competitors can't match. Ideal for large enterprises with complex global supply chains and varied transport modes, Oracle is a top pick among transportation management system companies.

• MercuryGate.

Flexibility defines MercuryGate's approach. Their modular design lets you start with core functionality and expand capabilities as needs evolve. This makes them appealing to logistics providers managing diverse client requirements. Strong multi-modal support covers everything from parcel to ocean freight. The system offers impressive optimization capabilities without overwhelming users with complexity. Mid-sized organizations appreciate MercuryGate's balance between powerful features and manageable implementation timelines. 

• C.H. Robinson Navisphere.

Navisphere gives access to its extensive carrier network for free – a great advantage for shippers. Their Freightview TSM platform allows to compare truckload, LTL, and parcel rates in one place, get real-time quotes, and communicate to secure the best shipping price. While less customizable than some competitors, Navisphere offers a ratio between functionality and ease of implementation. Companies seeking quick deployment without sacrificing core functionality choose this offering from one of the most connected TMS software providers in the industry.

• Manhattan Associates TMS.

Seamless integration between transportation and warehouse operations defines Manhattan Associates in the marketplace. Their approach eliminates gaps between facility and transportation processes, creating end-to-end visibility. The platform is perfect for multiple facilities and transportation legs. Their optimization engine enhances efficiency for companies balancing service commitments with cost constraints. While the pricing is by request and custom for companies, Manhattan's solution is a great pick for sophisticated logistics networks. 

• Alpega TMS.

European businesses find Alpega's platform well-suited to the continent's logistics. It has good carrier connectivity across Europe for simpler communication and capacity sourcing. The modular design also lets you choose just the right functions. Sustainability features stand out, as carbon footprint tracking and optimization options help comply with regulations. If you manage European transportation networks with cross-border complexity, you’ll find this tool invaluable.

• Kuebix.

Small and mid-sized businesses like Kuebix's approachable entry point. Their freemium model allows you to start with basic functionality at no charge using Kuebix Shipper, a free freight shipping tool to rate, book, and track shipments. While lacking some advanced features, Kuebix brings essential capabilities. Their approach to carrier connectivity simplifies rate shopping and capacity sourcing. If you’re new to transport management or have simple shipping requirements — Kuebix is a good option.

• Uber Freight.

Uber Freight's platform delivers a refreshingly modern approach to transportation. Their real-time marketplace connects shippers directly to carriers, offering instant pricing and capacity confirmation. While more focused on truckload shipments than multi-modal transportation, their solution improves domestic freight operations. The system is especially great for spot market shipments, with competitive rates and quick execution. 

• LoadMaster by McLeod Software.

Trucking companies find a special value in McLeod's LoadMaster, designed specifically for over-the-road operations. It provides a comprehensive freight pricing and booking platform, integrating real-time rates, bid management, and market benchmarking to

streamline shipping processes with automated tools for quoting, booking, and managing both contractual and spot market rates. Trucking companies on the lookout for operational support pick this targeted solution among other TMS software companies in the carrier space.

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How to choose a TMS implementation provider

While many off-the-shelf solutions work for most businesses, the ones with more specific workflows can benefit from custom web development. A tailored TMS aligns perfectly with your unique workflows, eliminates unnecessary features, and integrates seamlessly with your existing systems.

Consider partnering with COAX as your development company — our expertise spans across all types of logistics and transportation software. We build comprehensive transportation management platforms with features like route optimization, real-time tracking, vehicle management dashboard, automated dispatching, and intuitive driver interfaces. Each is designed with your specific operational model in mind. 

Our development process emphasizes scalability and future adaptability. The transportation software we create will grow alongside your business. Also, we ensure your software works seamlessly with your existing systems through custom API integration and provide ongoing support and maintenance – we’re always there to troubleshoot issues, implement updates, and introduce new features.

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FAQ

What is a TMS system?

A TMS system is software that helps businesses manage their transportation operations. It serves as the central hub for planning routes, selecting carriers, tracking shipments, and analyzing logistics performance to create more efficient supply chains.

How long does TMS implementation typically take?

Implementation timelines vary based on complexity, but most businesses can expect 3-6 months for a standard implementation. Simple cloud-based solutions may deploy in as little as 4-6 weeks, while enterprise-wide implementations with multiple integrations can take 9-12 months.

How does a TMS handle international shipments?

Advanced transportation management systems include features for managing international logistics, such as customs documentation, international carrier networks, multi-currency support, and compliance with various countries' transportation regulations.

Can a TMS integrate with my eCommerce platform?

Most modern TMS solutions offer integration capabilities with popular eCommerce platforms. These connections allow order information to flow automatically into the TMS for efficient fulfillment and provide customers with real-time shipping updates.

What ongoing maintenance does a TMS require?

Regular maintenance includes carrier rate updates, system upgrades, user training for new features, and occasional integration adjustments when connected systems change. Cloud-based solutions typically require less maintenance as the provider handles most updates automatically.