Top 8 Must-Have Features in Modern TMS Software

Today, it is hard to imagine any business unrelated to logistics operations. Whether you are a manufacturing or service company, you interact with suppliers, contractors, customers, and this interaction is often driven by the need to send and receive goods.

Managing logistics operations manually is inefficient and time-consuming. Given this, transport-management systems (TMS) are gaining more and more popularity. 

A TMS digitizes the supply chain, automates delivery, and ensures the transparency of transport operations. While every company's needs are unique, there are TMS features that streamline the work of any organization. What are these features, and what should businesses look for in TMS? Below, you will find answers to these questions.

Load planning and optimization

Load planning and optimization is one of the essential TMS features. It helps choose the optimal load of trucks and other vehicles, optimizing costs and delivery times.

Load optimization means grouping shipments into loads or trailers in the most efficient way. Here is how it works:

1. TMS identifies similar destinations and consolidates shipments

2. TMS analyzes weight limits and volume capacity of trucks and sorts shipments accordingly

3. TMS uses 3D cubing algorithms to determine the best way to stack goods within a trailer

4. TMS sorts shipments by special requirements, for example, temperature or humidity, and proposes the means of transportation

5. TMS analyzes the size and weight of shipments and offers Less-Than-Truckload (LTL) or Full-Truckload (FTL) transportation

Real-time shipment tracking

Real-time tracking is among the must-have TMS software features. It allows tracking the location of vehicles that carry goods and getting timely updates about delivery status.

Location tracking also helps troubleshoot breakdowns by sending defective vehicles to the nearest service center. If repair time is expected to be lengthy another truck can be dispatched to transfer the stranded cargo and ensure timely delivery. 

Another bonus of the real-time tracking TMS feature is that it helps you comply with FMCSA (The Federal Motor Carrier Safety Administration). Since you track the travel time in real-time, you can adjust the number of service hours set by the FMCSA.

It is necessary to use various technologies and tools to implement the tracking feature in a TMS. 

Here is what you should do:

1. Equip the vehicles with GPS or other tracking devices

2. Transmit data to the TMS system through cellular networks, satellite communication, or other wireless technologies

3. Choose real-time data processing technologies, including stream processing frameworks, databases, messaging systems, and analytics engines

4. Choose a mapping library. Google Maps is the most common choice here

5. Implement alerts and notifications based on predefined conditions

Integration with multiple carriers

A TMS integrates with many third-party providers to enable the best logistics management experience for users. A crucial TMS feature is integration with carriers, including trucking companies, shipping lines, airlines, railroads, and parcel carriers. This enables TMS users to compare different carrier rates, speed of delivery, and other factors and choose those that best match current needs.

The TMS can even suggest the best transportation option by itself if it is equipped with smart algorithms. For example, if you have an eCommerce website and a user places an order, the TMS can automatically calculate the cheapest and fastest delivery options and offer the customer a choice. 

To implement third-party integrations in a TMS, you should:

• Implement an API by which your TMS will integrate with third-party providers

• Secure data exchange with strong encryption and access controls

• Map the data fields between your TMS and the external system by using code or scripts 

• Store data in your database or send it for further analysis within your system

• Implement error-handling mechanisms to address integration issues efficiently

Integration with WMS

WMS stands for Warehouse Management Systems. This software helps you manage warehouse inventory, monitor stock, and ensure the optimal location of items. WMS and TMS organically complement each other, providing the user with greater opportunities to manage the supply chain.

WMS is a strategic integration of a transportation management system. While the TMS focuses on optimizing routes, it can also control stock in conjunction with WMS.

Imagine, for example, that you are a manufacturing company cooperating with various spare parts suppliers. For the production cycle to work without interruptions, the necessary parts must be in stock, but at the same time, the warehouses should not be overloaded.

The WMS-TMS pair can easily provide this outcome. The TMS will suggest shipping routes from suppliers to your warehouse, and the WMS will automatically adjust the amount of materials when they arrive at the warehouse or depart for production.

The process of integrating a TMS with a WMS is the same as with other third-party services. You need to develop an API, secure data transfer, and enable efficient data storage.

Analytics and reporting

This will help you understand what you did right and/or wrong in your supply chain strategy. Analytics and reporting are among the must-have features of the TMS system. It helps to revamp strategically incorrect actions and take measures to optimize transportation operations.

If you create a custom TMS system, you can choose which reports to generate and which indicators to display.

For example, you can generate a shipment, inventory, route optimization, or cost analysis report.

In these reports, you can track 

• carrier performance

• shipment history

• route efficiency

• inventory levels

• inventory turnover

• cost per mile or kilometer

• allocation of costs to specific products or customers

Freight audit and payment automation

Freight audit and payment (FAP) automation eliminates the need to reconcile invoices manually. FAP automation in TMS saves time, reduces human error, and streamlines the process of financial checks.

Behind the scenes, this feature involves a series of automated steps.

Here's how the process typically works:

Invoice capture. The invoice may be imported into the TMS through Electronic Data Interchange (EDI), email, or API calls. You can also implement optical character recognition (OCR) technology to extract data from paper invoices or scanned documents.

Data extraction. The TMS extracts shipment details, carrier charges, accessorial fees, and other relevant data.

Data validation. The system validates data by several criteria:

• rates - whether the carrier charges align with negotiated rates

• shipment information - whether shipment details on the invoice match the records in the TMS.

• surcharges and accessorials - whether they are legally documented

Discrepancy detection. This may include incorrect charges, duplicate invoices, missing documentation, or non-compliance with contract terms.

Exception handling. The system generates alerts when discrepancies are detected and routes them to the designated persons.

Approval workflow. Approved invoices are automatically sent to specific departments or persons.

Payment processing. Once an invoice is approved, the system automatically initiates payment processing. 

Route optimization

Route optimization is one of the most wanted transportation management system capabilities. This TMS feature suggests the optimal delivery path from point A to point B, taking into account various factors, such as:

• transport type

• road type

• cargo type

• expected delivery time

• weather condition

• traffic conditions

The route optimization feature in TMS helps to

• reduce transport costs

• guarantee timely delivery

• load trucks in an optimal way

• reduce force majeure (for example, those related to weather conditions)

• improve the quality of service

Here is how route optimization works in a TMS:

1. The TMS collects data on shipments, delivery locations, and vehicle availability

2. The routing algorithm evaluates various route options, including alternate routes and stops

3. The system applies constraints to ensure that routes adhere to specific requirements, for example, delivery time windows

4. The TMS monitors traffic conditions and road closures and adjusts routes accordingly

5. The TMS monitors and provides route updates throughout the journey

Mobile app

The ability to stay up to date and do business anytime, anywhere, is essential in a fast and competitive environment. With that in mind, a mobile app is one of the features to look for in a TMS.

Using the mobile application, you can track cars, loads, and routes on your smartphone. You can also quickly respond to critical situations and adjust transport operations on the go.

While a mobile app is crucial for boosting business, we recommend that you start mobile development after creating a web-based TMS.

The point is that a web-based TMS provides a more extensive user interface than mobile apps. This can be advantageous when dealing with complex logistics operations that require a larger screen and advanced features.

Besides, a web-based TMS is better suited for collaborative work. Multiple team members can access the system simultaneously, making it easier to coordinate and manage logistics operations.

Of course, a mobile TMS offers the advantage of mobility, which is especially valuable for drivers and field personnel who need real-time updates.

So, when you develop a successful transportation management system for the web platform, you can extend TMS capabilities to the mobile screen.

How Erbis can help with TMS features development

Erbis has extensive experience in the logistics industry. With 11 years on the market, we have helped enterprises and startups optimize transport operations and make the supply chain more transparent and cost-effective.

One of our recent projects is re-architecting a supply chain management system for a logistics company in San Francisco. Their app was developed many years ago and no longer met the customers' growing needs. The Erbis team transformed the legacy system into state-of-the-art software to manage deliveries in real time. You can read more about the development flow, the technologies we used, and the TMS features we implemented here.

If you need help with the development of a transportation management system or expanding TMS capabilities, don't hesitate to contact us. Our business and tech experts will study your project and suggest the best solution for your business needs.