Transportation Management System - Functionalities

Functionalities

Transportation management systems manage four key processes of transportation management:

  1. Planning and decision making – TMS will define the most efficient transport schemes according to given parameters, which have a lower or higher importance according to the user policy: transport cost, shorter lead-time, fewer stops possible to ensure quality, flows regrouping coefficient, etc.
  2. Transportation Execution – TMS will allow for the execution of the transportation plan such as carrier rate acceptance, carrier dispatching, EDI etc..
  3. Transport follow-up – TMS will allow following any physical or administrative operation regarding transportation: traceability of transport event by event (shipping from A, arrival at B, customs clearance, etc.), editing of reception, custom clearance, invoicing and booking documents, sending of transport alerts (delay, accident, non-forecast stops…)
  4. Measurement – TMS have or need to have a logistics key performance indicator (KPI) reporting function for transport.

Various functions of a TMS include but not limited to:

  • Planning and optimizing of terrestrial transport rounds
  • Inbound and outbound transportation mode and transportation provider selection
  • Management of motor carrier, rail, air and maritime transport
  • Real time transportation tracking
  • Service quality control in the form of KPI's (see below)
  • Vehicle Load and Route optimization
  • Transport costs and scheme simulation
  • Shipment batching of orders
  • Cost control, KPI (Key performance indicators) reporting and statistics
    • Typical KPIs include but not limited to:
      1. % of On Time Pick Up or Delivery Performance relative to requested
      2. Cost Per Metric - mile; km; Weight; Cube; Pallet
      3. Productivity in monetary terms, e.g. $/lb or $/shipping unit
      4. Productivity in operational terms, e.g. shipping units/order or weight/load

However, all the above logistical functions need to be scrutinized as to how each parameter functions.

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