What is TMS (Transport Management System) and what advantages does it offer?
Supply chain software solutions are nowadays more popular and appreciated than ever, thanks to the advantages they offer companies that cannot operate efficiently without logistics support in various business sectors. One of these is the dedicated transport management software solution, also known as TMS (Transport Management System).
We will talk about TMS in the following lines to explain what TMS is, who uses such a system for transport management, what processes are automated and what advantages the implementation of such an application offers.
What is TMS?
TMS (Transport Management System) is a popular application among companies using supply chain solutions.
Basically, TMS is a software solution for managing transport activities, from planning trips according to certain configurable parameters to unloading goods at customers, which ensures that set KPIs are met.
Such an application comprises several modules and functionalities to cover a wide range of transport activities. Learn more about these in the chapter on digitization of processes and operations using with such a transport management system.
The typology of companies using such an application highlights the fact that the TMS is an advantageous and efficient solution for companies managing a high and constant level of shipments.
Who uses TMS?
Many companies use TMS software solutions. Most of them are:
- transport companies;
- companies with their own distribution fleet (manufacturers, 3PL providers etc.);
- courier companies;
- freight forwarders (companies that, for a fee, organize shipments for shippers by liaising with carriers).
The type of companies using such an application shows that TMS is an advantageous and efficient solution for businesses that constantly manage a large number of shipments.
Which processes are digitized?
xTrack TMS is Axes Software’s TMS solution. It is practically designed to digitize a wide range of work processes required by the transport business.
Delivery scheduling
With xTrack TMS, deliveries are scheduled automatically. Scheduling is based on a number of configurable parameters such as:
- drivers’ working hours,
- the types of vehicles included in the planning,
- the customers’ work schedule,
- transport capacity,
- intermediate locations,
on the basis of which several variants can be obtained. The manager using the software solution can thus choose the most advantageous one.
Identification of optimal routes
xTrack TMS automatically generates optimal routes for each trip, taking into account a number of essential parameters: the mass and volume of goods to be transported, the delivery destination, the drivers’ and customers’ work schedules.
The application not only identifies the optimal routes, but also suggests the right car for each route, minimizing costs and automatically creating transport orders. Orders are grouped, allowing warehouse workers to quickly load goods ordered by customers.
Trip monitoring
Real-time monitoring of transport operations is a prerequisite for ensuring that the set performance indicators are met. A module dedicated to this functionality is integrated in the xTrack TMS application. Managers have the possibility to access the information related to each individual trip, either in real time or after its completion.
Transport profitability calculation
With xTrack TMS the profitability of each individual journey can be calculated automatically. This helps managers to select the most cost-effective transport options and reduce delivery costs. Users can see real-time changes in costs and revenue by allocating new orders. Used in conjunction with xTrack FIN (another Axes Software application) to manage price lists, the xTrack TMS system can distribute costs equitably between customer orders. The profitability report provides essential information for the transport department.
What advantages does TMS offer?
Here are some of the main advantages of a transport management system, which translate into a more efficient use of available resources:
- Elimination of human errors at the scheduling stage – The system prevents trip overlapping. In addition, in the event of temporary changes in available resources (staff on annual leave, machine maintenance etc.) or if unforeseen events occur (staff on sick leave, technical breakdowns) xTrack TMS quickly carries out automatic re-scheduling.
- Reduction in the number of trips and therefore in the number of vehicles used and kilometers travelled – Making maximum use of the space taken up by the goods during loading and grouping deliveries on the same transport order according to various criteria ensures that fewer trips are made for the same volume of goods;
- Route optimization – Automatically determining the shortest routes to ensure delivery targets are met is an important aspect. Shorter distances mean lower fuel consumption and maintenance costs. Shorter routes also contribute to reductions in delivery times. xTrack TMS incorporates a powerful route optimization module that significantly reduces distribution costs. In less than a minute, hundreds of orders can be optimally grouped for dozens of vehicles.
- Increased driver productivity – Drivers receive clear instructions from the start, follow an established route which they can easily view on the mobile phone map via the xTrack POD app and make deliveries on time.
- Observance of delivery times and deadlines agreed in advance with customers – A trip schedule that also takes into account the time preferences expressed by customers ensures that deadlines are respected in practice. In this way, compliance with the contractual clauses for on-time delivery of each order is ensured and penalties are eliminates.
- Elimination of unused working time and empty runs – This is achieved through complex scheduling based on well-selected parameters and efficient use of system data with the result that the transport vehicles are loaded to full capacity.
Complementary solutions to the transport management system
To ensure the traceability of the goods they produce, store and deliver to customers, companies can opt for an integrated system of software applications that process the data flows. The main applications that fall into this category are MES (Manufacturing Execution System), WMS (Warehouse Management System) and POD (Proof of Delivery).
Axes Software Solutions
xTrack TMS Solution
xTrack TMS is the TMS solution that Axes Software offers to companies that want to organize their transport activities efficiently, customizing it according to their customers’ needs. In parallel with the development and diversification of the modules of this application, our team has also designed other solutions to streamline logistics activities. These can be interfaced with xTrack TMS or with other applications used by Axes Software customers. To ensure a tight control of goods from the raw material stage to their delivery to the your initial customers, we recommend some of Axes Software’s applications:
xTrack MES solution
xTrack MES (Manufacturing Execution System) is, as its name suggests, a system for planning and launching into production, as well as monitoring the execution stages of technological operations. This software solution is easy to integrate with TMS applications (including xTrack TMS), thanks to its own EDI interface. The interconnection of the two types of applications ensures traceability of goods from the moment raw materials enter the manufacturing facility until the delivery of finished products to customers.
Among the most important benefits of xTrack MES are: drastic reduction of production planning time, elimination of human errors, strict inventory control through processing and synchronization of stock data. Automatic tracking of material movements between machines involved in the production process is another great advantage of xTrack MES.
xTrack WMS solution
xTrack WMS (Warehouse Management System) ensures warehouse and inventory management. This solution’ interfacing with xTrack TMS has multiple benefits, one of which is ensuring the accuracy of stock data. Confirmation of receipt and delivery of goods in the TMS is done automatically by integrating the two systems. Warehouse staff load goods into vehicles according to optimizations made by the TMS application.
To find out more about the usefulness and benefits of WMS applications, please read the article What is a WMS (Warehouse Management System)?
xTrack POD solution
The integration of xTrack POD with a TMS system is essential for the complete management of shipments and the optimization of all delivery activities. It allows, among other things, to view trip and route details, mark driver breaks on the route, cancel delivery orders (if they occur), confirm arrival at destination and/or collect payments.
Find out more about the benefits of xTrack POD here, and on the xTrack POD page on our website: POD.
The xTrack T&T solution
The xTrack T&T online platform (Track & Trace application) integrates with xTrack TMS to display the progress of ongoing deliveries to customers. At the same time, users can create transport requests that are sent to the TMS department.
The xTrack FIN solution
The xTrack FIN application is a solution for calculating the prices for provided services. In the application you can set up price lists for courier companies, companies providing transport or warehousing services, as well as for non-logistics companies providing other kinds of services (e.g. telecommunication services).
The value of the service provided is calculated on the basis of price lists saved for each individual customer of the firms concerned or on the basis of general price lists, depending on various parameters, such as, for example, in the case of transport, tonne/km. All calculated values are then invoiced periodically, automatically, according to the contracts.
Conclusion
As you can easily see, implementing a TMS application helps you to streamline the activity in your company and optimize all the resources at your disposal (human, financial, material and time resources) whereas TMS interfacing with other logistics applications brings additional benefits.
If we have convinced you that it’s worth investing in a software solution, or if you need more information about Axes supply chain management solutions, fill in any form on our website and write us your request. One of our consultants will contact you as soon as possible.
