Any organization in the business of logistics and freight movement can derive a lot of benefit from a good Transportation Management System (TMS) such as improved operations, better customer service, improved logistics, more accuracy, less expense and less time taken to move freight from origin to the destination. A TMS can help in planning and executing the physical movement of goods by helping optimize logistics and supply chain management strategy which in turn significantly improves an organization’s cost and service structure. The numerous benefits offered by TMS makes it a viable supply chain management solution for both small and large organizations.

Before the advent of software-as-a-service (SaaS) cloud TMS, only large organizations could implement TMS because of the primitively high costs. The availability of software-as-a-service cloud TMS software has led to explosive growth in the popularity of TMS, with the software market expected to grow by 400% in the next four years to reach around $5 billion by 2025.

SaaS TMS has considerably reduced the barrier to industry, with lower upfront cost, lesser maintenance requirements, access to faster upgrades, and better support from the service provider.  reduced the barriers to entry with lower upfront costs, easier maintenance.  However, as the demand has gone up, so has the supply, which there are many logistics software development companies which have introduced their own TMS system in the market. This has made it a bit difficult for organizations to choose the best amongst the lot keeping their own specific requirements and budget in mind. Further complicating the matter is the fact that difficulties are likely to be encountered when it comes to TMS implementation and integration within current company dynamics, so that the software can serve its intended purpose.

With all the TMS options available, and to enable organizations help choose a company that specializes in custom TMS software development, we look at the benefits and features of a Transportation Management System (TMS).

Helps Lower Freight Costs

A TMS helps organizations rate and route their shipments within a short period of time to make sure the freight is moved via the optimal mode in the most cost-effective manner, without compromising on service.

Simplify Operational Execution

TMS enables an organization to save resources by doing more with less by offering an efficient platform for better analysis, execution and management of logistics and supply chain strategies and approaches.

Reduce Freight Expenses

One of the major benefits offered by a TMS is that it lowers freight expenses to a considerable extent through high-level analytics and optimization by helping derive meaningful insights from the collected data.

The TMS does the heavy lifting by helping reduce freight costs by varying out freight optimization process.  A good TMS possess the ability to evaluate thousands of alternatives within a span of few seconds to determine the best path with the least cost. The analysis is then passed onto the operation team for execution.

Track Deliveries in Real Time

A TMS aids in knowing the exact location of shipments and drivers at any given time. This in turn offers information about the time taken if a particular route is chosen, which in turn helps in creation of an efficient route schedule.

Improves Service Levels 

A top class TMS helps an organization serves its customers better through improved visibility, speed and automation.  This is incredibly important for an organization to maintain competitive advantage in the marketplace, because customers are becoming more and more demanding. A good software can help customers track their shipments in real time.

TMS Facilitates Digital Connectivity of Supply Chain Stakeholders

It is often seen that the important role played by a TMS as a good communication platform fails to get the attention it deserves. A good TMS ties brings onto a common platform an organization’s both internal and external aspects of a supply chain stakeholders. Convergence on a common platform facilitates taking of well-informed and prudent decisions for both short and long-term strategic advantages.

Quick Updates Related to Shipment Deliveries and Delays

A TMS helps organizations keep track of their products from the origin point till it reaches its final destination. Companies are offered real-time updates about shipment deliveries or delays. This in turn helps them deal with any contingencies in real quick time.  The data gained through real-time tracking augments visibility at all stage, and more importantly enables an organization to assess itself and correct its shortcomings quickly to remain competitive in the marketplace.


The benefits offered by a good Transportation Management System developed by a quality custom TMS software development company can help businesses offer better service to customers, which in turn can drive sales and profits. The advantages offered by a good TMS such as better warehouse efficiency and productivity, better billing processes, less paperwork, and heightened transparency to logistics and supply chain transactions can help organizations transport goods in a better and more organized manner using less resources.