What is a TMS?
TMS stands for Transport Management System — a software platform that helps companies plan, execute, track and optimise transport flows. It is used for both inbound and outbound logistics, from the factory door to the end customer.
TMS = control over transport costs, routes, carriers and delivery reliability.
🎯 What does a TMS do?
With a TMS you can:
- Plan and assign transport to carriers
- Generate shipping labels (including SSCC and tracking codes)
- Optimise routes based on cost, route and load
- Integrate Tracking and Tracing with carriers
- Send EDI messages such as IFTMIN (transport order) and IFTSTA (status message)
- Analyse transport costs and performance
🧱 Key features of a TMS
| Feature | Description |
|---|---|
| Carrier management | Management of carriers, rates and SLAs |
| Route planning | Smart routing of shipments based on distances and stops |
| Freight auditing | Verification of transport costs and invoices |
| Track & trace | Live status of shipments via EDI, GPS or API connections |
| Tendering & allocation | Automatic assignment of shipments to the best carrier |
| Reports & KPIs | Carrier performance, cost per kg, delivery reliability |
🔗 TMS integration with other systems
| System | Interaction with TMS |
|---|---|
| WMS | Passes pick lists and shipping information to TMS |
| ERP | Sends orders, customer data and delivery data |
| EDI | Sends messages such as IFTMIN, DESADV, IFTSTA |
| Tracking and Tracing | Connection to external track-and-trace platforms |
🚚 Example process with TMS
- An order from ERP or WMS arrives
- TMS selects the best carrier and plans the trip
- SSCC labels and CMR documents are generated
- The shipment is dispatched, status is monitored live
- Delivery is confirmed, costs are charged automatically
✅ Benefits of a TMS
- Lower transport costs through optimisation and comparison
- Better grip on deliveries via real-time monitoring
- Automation of documentation and communication
- Better insight into carrier performance and cost
- Faster processing of orders and shipments
📌 In summary
A TMS is indispensable for companies that want to organise and monitor transport efficiently and at scale. It forms the bridge between warehouse, customer, carrier and back office.