What Is a Transportation Management System (TMS)?

What Is a Transportation Management System (TMS)?

According to some research, the transport management system market is set to reach $27.48 billion by 2028.

If you don’t want to fall behind, you should invest in your own transportation management system.

But what are they, and what are the benefits of having them? Keep reading to find out all you need to know!

What is a Transportation Management System

A transportation management system is a system that can help you do freight rating and shopping, plan freight movements, and select different routes and carriers for your shipment. You can even manage all your payments and bills on there.

This system is a digital way to manage all of your freight operations in one platform rather than having different threads of emails and phone calls with other companies. 

You can also use this to connect your warehouse system. With them connected, you’ll have better supply chain efficiency as well. 

Who Uses It?

In general, there are a few different types of businesses that use this system. Any business in any industry can use it if they’re shipping, moving, or receiving goods on a consistent basis. 

Normally, distributors, manufacturers, retail businesses, e-commerce businesses, and logistics companies use this system. 

These businesses use it across all kinds of industries, like life sciences, construction, business, retail, and so much more. 

There are also options to have a cloud-based system, which has made it more affordable and accessible for small businesses to use as well.


Most transport management systems, like Headlight Solutions software, offer all kinds of different functions that will benefit your business. 

For example, you can use it to optimize, execute, or plan to move different materials. With planning, you’ll be able to choose different shipment methods and find the best carrier based on distance, efficiency, and cost. 

You can even optimize it if you’re going to be using multiple carriers on the route. 

You’ll be able to see every stage in the pipeline and work together to find the best route possible. The system will also give you good information on traffic and trade that could delay your shipment in customs. When you’re able to avoid this early, you could move your shipment faster.

You could even make sure that your shipment is executed properly. You can communicate with the carriers, track and document shipments, and even handle all of the billing and statements right there. 

Some of the fancier systems also let you trace and track services and get real-time information to see where your shipment is at the time. Even more complex options will let you handle international logistics, have proper imports, and export documentation to make sure that the shipments are compliant with international customs.

You’ll also be able to optimize the shipment in real-time. You can track the performance and export reports and analytics from your dashboard.


What are some of the challenges that this type of system can help with? Well, one of the first ones is that you’ll be able to find the best carrier for your shipment.

Not every shipment is going to be the same. For example, sometimes they are temperature sensitive or need to be handled with extra care. Maybe you need to ship it quickly. 

Because of this, you can’t always choose one carrier. With this system, you’ll be able to find a different carrier for each shipment, so that you can rest assured that your shipment is handled in the best way possible.

The TPS will also keep all your quotes organized while you search for the best shipper. You won’t have to be on the phone and jump through emails and websites to find different rates. 

You can get quotes in real-time, and with all that extra time, you can focus on another aspect of growing your business. 

The management system will also give you all kinds of data that will help you run your business better. You’ll know for sure who the cheapest carrier is and how many on-time deliveries you had. Without that technology on your side, it would be hard to tell. 


Using this type of system also has all kinds of different benefits. For example, it’ll help to simplify the process of choosing a shipper.

You’ll be able to evaluate the merchandise that’s sent and find a carrier who is in the network. You can even revisit all your past shipments to see if someone would be a better fit that you can go with. 

You’ll also be able to track all of your shipments. You can track them when they’re on the road and also get any alerts so that you can fix problems when they arise. If a delay is occurring, the TMS will let you know what’s happening and what you can do to fix it.

A transport management system will also give you all kinds of new technology. You’ll be able to predict transit time and compare quotes. You will be able to keep all of your books in this system, and if it’s in the cloud, it’ll be easy for your employees to access as well.

Learn More About Transportation Management System

We know that running a business can be stressful and challenging, but using a transportation management system can help to alleviate some of the stress. 

At the end of the day, there are so many benefits to getting one that you should be able to find one that fits your business.

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M Ateeq