Transportation management system requirements

Transportation management systems (TMS) are an essential tool for shippers to power proactive and strategic logistics operations. They serve as all-in-one solutions for planning, executing, and managing logistics operations across regions and modes. Having access to these one-stop-shop solutions can help logistics teams quickly access their supply chain network data to address disruptions and make adjustments to their operations on the fly.

However, shippers that leverage a TMS that isn’t designed to navigate the challenges of modern supply chain management can find themselves unable to implement proactive strategies. The key to keeping up is investing in the right TMS—one that’s grounded in cutting-edge technology and built with the necessary requirements to meet the dynamic needs of today’s logistics operations. 

Look no further than the collapse of Baltimore’s Key Bridge to understand the importance of a cutting-edge transportation management system (TMS). With the bridge gone, shippers impacted by the disaster needed to rely on their TMS platforms to gain visibility into alternate routes as efficiently as possible. The bridge tragedy is a clear-cut example of the fact that supply chain disruptions can happen at any moment, and teams need access to the right logistics technology to manage these complexities. 

Even on a good day, transportation management is a complex puzzle. If logistics teams onboard a TMS without the proper requirements to help inform their business decisions, their operations could face issues such as higher transportation costs, delayed shipments, and warehouse inefficiencies. 

Uber Freight offers logistics teams a TMS equipped with the requirements needed to address top-of-mind supply chain challenges. Consider some of the key requirements that power a robust TMS.

Core functional requirements of a TMS

TMS requirements should include features that optimize routing and enable carrier management, load planning, execution, and freight management. With these features in place, logistics teams will be able to make more proactive decisions that save time and money. 

Optimizing transportation management with a TMS can help logistics teams unlock benefits such as real-time visibility into their shipments; route optimization to reduce fuel costs; and advanced reporting capabilities to help shippers measure performance and make data-driven decisions. 

Route optimization

Route optimization is a key requirement that can help shippers pinpoint the most cost-effective routes. Software that powers route optimization can collect data from the road—such as the number of stops on a route, traffic, and delivery time windows—allowing shippers to efficiently plan their trucking routes. These capabilities are vital for businesses to proactively identify ways to improve shipping speed, reduce costs and pivot to better routing options on the fly. 

Carrier management

Another critical transportation management system requirement is carrier management. As shippers plan their routes and capacity sourcing, the right TMS software can provide automatic access to a network of trusted carriers spanning different modes and services a team may need, whether it’s FTL, LTL, or intermodal. A modern TMS will also allow users to seamlessly secure capacity when needed, no matter the market conditions, with dashboards that can shorten decision-making cycles and power rapid execution.

Freight audit and payment

Efficient transportation management includes smooth freight audit and payment functions. A robust TMS allows shippers to automate their invoicing and payment functions, reducing delays and disputes along the way. Additionally, it will automate freight auditing functions, keeping books up-to-date and in order.

Shipment tracking

Customers want to know where their shipments are at all times. A TMS can offer shipment tracking tools that provide the real-time visibility needed to supply them with that information. Real-time visibility gives teams instant access to shipment progress, through methods such as digital dashboards. This information allows teams to make smarter decisions on the fly, such as rerouting shipments or shifting to alternative modes of transportation in the event of supply chain disruption. 

Advanced TMS features for enhanced performance

Beyond your basic TMS requirements, logistics teams should also be on the lookout for features that enhance performance and deliver additional value through seamless integrations with inventory management and warehouse management systems, which can help streamline overall operations and improve inventory accuracy. 

With deeper, more holistic insight across all these tools, users can expect to improve their inventory management, warehouse management, order management, reporting, and logistics data analysis. All of these factors, working productively in tandem with each other, can power a more efficient supply chain.   

Inventory and warehouse management

Because transportation management doesn’t end at the loading dock, it’s essential that a TMS integrates seamlessly with inventory management and warehouse management systems. Together, these tools provide the supply chain visibility shippers needand enable logistics teams to successfully participate in distribution network planning. If companies are using an ERP system, they should make sure their TMS integrates with it as well. 

Order management

Likewise, companies need order management processes within their TMS to carry out fulfillment accuracy. With an integrated system, businesses will be able to carry out their order-to-delivery processes, cut down on errors, and avoid delays. 

Reporting and analytics

To make informed decisions, TMS requirements should include enhanced analytics and reporting. Cutting-edge technology like machine learning and AI are increasingly offered in robust TMS packages to power  customizable reporting features and transportation analytics. Machine learning can deliver optimized information to help logistics teams make the best decisions possible. 

Non-functional TMS requirements

In addition to the many features shippers seek in a TMS, there are non-functional TMS requirements to keep in mind, too. These include scalability, security features, flexibility, cloud-based TMS, and TMS integration capabilities.

Ensuring robust security in TMS

A TMS should have built-in cybersecurity measures, such as antivirus software and powerful data encryption, to protect sensitive transportation data. With TMS adoption becoming more commonplace—the market has experienced a 60% growth rate over the past five years—more companies will need these types of security features in place.

Scalability and flexibility

A business today will be different than a business tomorrow. For their logistics operations to succeed, businesses must adapt, whether it’s to a future freight market turn, seasonal demand, or their own business growth. For these reasons, companies need a TMS software that is scalable, flexible, and customizable—meaning that the technology can always be tweaked and tailored with solutions to meet the needs of shifting business operations and infrastructures. 

Seamless integration

Integrating one type of software with another can prove challenging, so companies opt for integration capabilities that align with their technology infrastructure. Look for electronic data interchange (EDI) capabilities and adaption programming interface (API) to easily integrate.

Choosing the right TMS

To choose the ideal TMS for their business, logistics teams should consider the following:

• Their TMS business requirements
• Their software specifications for a TMS
• What TMS integration with their current systems will look like, from a timing, cost, and efficiency standpoint  

Teams must also consider the capabilities of a TMS, and seek out solutions that can provide benefits such as:

• Real-time visibility to track shipment journeys
• Access to a vast network of carriers to fuel agile procurement 
• Data-driven insights to improve service and speed
• Streamlined payment options such as automated billing

Uber Freight’s TMS solution

Anchored in next-generation logistics technology, Uber Freight’s TMS is designed to meet all of these TMS requirements, and more. Our solution helps shippers and their logistics partners improve their networks while gaining visibility, foresight, and control across their shipments. The supply chain is evolving daily. The right TMS will ensure logistics teams are up to the task of proactively handling disruptions, daily operations, and everything in between. Request a demo to learn more about how Uber Freight’s TMS can help shippers streamline their logistics operations.

Additional TMS resources:

• How a TMS can help revamp your transportation process
• Manage shipments across modes and regions with Uber Freight TMS – watch video
• Uber Freight TMS: The engine powering intelligent logistics forward – watch video