What is TMS (Transport Management System) and what advantages does it offer?

When it comes to managing freight transport, every detail matters. For companies aiming to reduce costs, streamline processes, or increase transparency, modern Transport Management System (TMS) solutions can make all the difference. This article helps you understand what a TMS is, who uses it, which processes it can automate, and how the xTrack product family from Axes Software meets today’s logistics requirements.

You’ll find clear information about the core functionalities and real benefits of TMS software, along with concrete examples from different industries. At the end, you can explore useful resources and practical suggestions on how to approach digitalization in transport the right way.

What transport management looks like in modern companies

Companies that handle freight often face pressure related to fast order fulfillment, route optimization, and cost control. Without a digital tool, planning errors, delays, and wasted resources are inevitable. A TMS guides operators to organize shipments more efficiently, monitor routes, and adjust operations in real time.

Digitalizing transport goes beyond simply using software: companies can manage large volumes of goods, communicate more effectively with partners and customers, and gain accurate data about every stage of the logistics process. That’s why many organizations choose to implement dedicated transport software solutions to remain competitive in the long run.

What is a TMS (Transport Management System)

A TMS is a specialized software application designed for managing transportation. Such a system covers:

• route planning,
• vehicle and staff allocation,
• real-time trip monitoring,
• automatic generation of delivery documents,
• cost visualization and analysis.

For example, a logistics manager can use a TMS to upload orders into an online platform, assign shipments to the right fleet, and track deliveries from the warehouse to the recipient. Native integration between a TMS and other systems – such as ERP (Enterprise Resource Planning) or WMS (Warehouse Management System) – provides traceability and consolidated data across all logistics activities.

Who Benefits from TMS Solutions

A TMS is suitable for companies that manage varying volumes of transport, from large-scale operators to smaller businesses.

Among the companies that adopt TMS are:

• Freight carriers in road, air, rail, or maritime transport
• Distributors and retailers with national or regional networks
• Manufacturers in sectors such as FMCG, automotive, or pharmaceuticals
• Forwarding houses and third-party logistics providers

For example, a distributor with 30 vehicles can automate the planning and monitoring of daily routes, reducing the risk of human error. With cloud-based options available, small and medium-sized companies can quickly access these benefits without major infrastructure investments.

Which processes does TMS software automate

A TMS streamlines complex processes by reducing time spent on repetitive tasks and improving operational control. The most common automated functionalities include:

• Route planning and optimization: The software calculates optimal routes, considering load weight and volume, delivery zones, and customer schedules. For example, a retailer can directly optimize delivery flows between multiple warehouses.
• Automatic trip and document generation: Once orders are added, the platform automatically schedules trips, generates transport sheets, and prepares loading lists.
• Real-time monitoring and reporting: Operators can track every shipment, receive status notifications, and quickly intervene in case of incidents or delays.
• Proof of delivery management: The system enables fast delivery confirmation, attachment of photos or digital signatures, and automatic order status updates.
• Cost and profitability analysis: A well-configured TMS provides detailed reports on cost per ton or kilometer, load rates, fleet efficiency, and key management KPIs.

Through these automations, companies gain better control over resources, reduce costs, and shorten processing time for each shipment.

The real advantages of implementing a TMS

By using a TMS, companies gain benefits that quickly reflect in their daily operations:

• Optimized resource utilization: The software ensures efficient use of every vehicle, lowering personnel and maintenance costs.
• Cost control: Automation reduces human errors and minimizes idle time, directly impacting the transport budget.
• Real-time monitoring and quick response: Access to live data for each trip enables prompt adjustments to changes in the logistics chain.
• Improved customer satisfaction: Companies can provide accurate updates on order status, with deliveries arriving on time more often.
• Access and flexibility: Cloud-based TMS platforms can be reached from anywhere via web interface or mobile app, without hardware constraints.
• Integration with other systems: Connectivity with WMS, ERP, or MES applications enables end-to-end traceability and unified reporting.

A clear example: a pharmaceutical distributor can cut transport costs by 15% while meeting strict monitoring requirements for sensitive deliveries.

Modern technologies in today’s TMS solutions

With technological advances, TMS platforms now include smart features that help anticipate and manage transport challenges:

• Internet of Things (IoT): Connected sensors track vehicle location, cargo temperature, and route conditions.
• Artificial Intelligence (AI): The platform analyzes historical data and suggests optimal routes or transport combinations.
• Blockchain for traceability: System-generated documents become easy to verify and archive, increasing transparency.
• Digital assistants: Chatbots handle communication with drivers or customers, saving operators valuable time.

Companies that adopt a professional TMS become far more agile and can easily anticipate market demands.

Usage examples: the xTrack family from Axes Software

Axes Software’s integrated xTrack solutions address diverse logistics needs, from route planning to cost analysis.

➡️ xTrack TMS: Automates route planning, monitors trips, and analyzes profitability based on weight, volume, or kilometers traveled.

➡️ xTrack FIN: Simplifies the management of transport price lists and automates invoicing according to established contracts.

➡️ xTrack WMS: Provides warehouse control and synchronization between inventory management and transport organization.

➡️ xTrack MES: Connects production with transport, ensuring complete traceability and continuous information updates.

➡️ xTrack POD: Enables management of digital proof of delivery, tracking driver breaks, and monitoring completed routes.

➡️ xTrack T&T: Displays delivery status and allows management of transport requests from customers.

What’s next: tips for digitalizing logistics

Adopting a TMS delivers visible results when planned and implemented correctly. Here are a few recommendations to optimize the process:

• Analyze existing processes and clearly define your digitalization priorities.
• Choose a TMS provider that offers easy integration with current systems and reliable technical support.
• Involve the operations team during the testing phase and pay close attention to their feedback.
• Use the data generated by the TMS to adjust workflows monthly and identify areas where costs can be reduced.

Logistics digitalization becomes more accessible with tailored tools, and selecting a smart platform helps you keep pace with market changes.

A TMS (Transport Management System) enables professional management of transport processes, cost reduction, and efficient communication with both teams and customers. Flexible implementation options are available for businesses of any size, and solutions like Axes Software’s xTrack can be customized to fit your industry.