April 22, 2022
8 min read

Benefits of Transportation Management System (TMS)

Adhikansh Gupta

The technology that powers today's fast-paced world keeps it moving forward. In the past few decades, consumers have become more aware of their options and demand lower prices, greater convenience, and top-notch customer service. Creating flexible and quick-to-respond supply chains have become increasingly important in the wake of the pandemic because companies have no choice but to put customers first.

Why Do You Need a TMS?

Today's customers expect almost immediate gratification. It doesn't matter what the customer wants. If they want it now, they want it in stock. The term "Amazon Effect" refers to this phenomenon. Brick-and-mortar retail is one of the many traditional forms of commerce that the rise of online retailing has impacted. As a result of the Amazon Effect, customers now have access to a nearly frictionless shopping experience, complete with easy payment and quick shipping options.

Shipping expenses for most multi-channel businesses dwarf direct and indirect payroll costs and utility bills. The Amazon Effect has significantly impacted its financial position even if a company only has rudimentary transportation requirements. The cost of the last mile delivery is now 53% of the total shipping cost. In 2022, the global courier and delivery services market is expected to expand by 4.9%. Multiple factors are expected to keep the growth steady in the next few years. With a 12.65% CAGR throughout 2021-2025, the Same Day Delivery market's revenue was 4463 million in 2019 and will be 9121 million dollars in 2025.

Keeping shipping costs under control without sacrificing service quality is, therefore, in the best interest of every logistics-oriented company. When it comes to transportation management systems, they come into play. We'll examine the advantages of TMS and what they can do for your business in the following sections.

Benefits Of TMS

A compound annual growth rate (CAGR) of 14.6 percent is forecasted for the global transportation management systems market between 2022 and 2030. No doubt TMS is on-demand for a reason. So what are the benefits?

1. Improve customer service

Customers want lightning-fast delivery, last-minute order changes, and personalized delivery times. They expect it with every order. Companies must adapt to meet customer expectations. This is where the new-generation TMS comes in. TMS will link order-management systems and warehouse management systems. Order consolidation helps find the most cost-effective carrier, which allows customers and businesses.

2. Warehouse Productivity

TMSs help warehouse efficiency. The more you use your TMS, the less time you spend managing freight and the more time you have for warehouse operations. If your TMS is integrated with your ERP, you'll spend less time fixing entry errors or entering new data. Warehouse Management Systems and Supply Chain Visibility Solutions can reduce costs and improve efficiency (SCIS)

3. Delivery tracking

You can track shipments with a TMS. When cargo is late or missing, organizations are notified. Businesses can quickly make adjustments when they know about service outages. Monitoring data can calculate route completion times for more efficient route schedules.

4. Cheaper shipping

Good transportation management software can reduce shipping costs. The best system looks at each logistical route's financial factors to determine the most efficient. It provides user-oriented cost-cutting solutions for fuel consumption and driver overtime.

5. Supply chain visibility

TMS solutions offer supply chain transparency. Real-time data from all integrated systems is a big plus. Logisticians can more quickly and effectively spot problems. Client satisfaction is high without sacrificing performance or efficiency.

6. Dock alignment

Transport planning and execution improve dock scheduling. An effective TMS can reduce wait times and ensure high-quality transport by aligning deliveries with dock schedules.

7. Order Accuracy

TMSs make shipping much more accurate. Order accuracy is improved by tracking real-time and getting information from the supply chain. TMS software gets rid of shipping mistakes and oddities. Minor problems during transit shouldn't affect the consumer.


Correctly implemented TMS solutions save a business money. Any business would benefit from the above advantages, as every company strives to please its customer with high-quality products and services. This allows for maximum gain and efficiency. If you don't have a TMS, give Traqo a try.

Written by
Adhikansh Gupta
Content Manager

Writer and editor who covers the latest trends and innovations in the software-as-a-service (SaaS) industry

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