At a Glance
- Most important function
- Route optimisation + carrier connection
- ROI potential
- 5–15 % freight cost saving
- Integration
- ERP, WMS, EDI, API
The core functions of a TMS
Order management: receiving, checking and forwarding transport orders. Route planning and optimisation: minimising journey costs, CO2 and time. Carrier management: connecting carriers by EDI, API or portal. Tracking and visibility: GPS-based consignment tracking in real time. Freight cost accounting: automatic tariff comparison and invoice verification.
TMS for shippers vs forwarders
A shipper TMS focuses on carrier selection, freight cost optimisation and transparency across all service providers. A forwarder TMS focuses on tour planning, vehicle deployment, driver communication and billing. Platforms such as NexCargo act as a digital TMS layer for shippers without requiring IT infrastructure of their own.
The main TMS providers
Leading international providers: SAP TM, Oracle Transportation Management, MercuryGate, BluJay (now e2open). Focused on mid-sized companies: Transics, Cargoson, Sixfold (tracking). Cloud-native platforms: project44, FourKites. For smaller forwarders: Winfuel, Cargoson, Iloxx.