10 Key Benefits Of Transportation Management System (TMS)
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10 Key Benefits Of Transportation Management System (TMS)

The growth of e-commerce and the rise of global supply chains have contributed to the increasing demand for TMS. With the increasing complexity of transportation operations, TMS has become a crucial tool for companies looking to improve their supply chain visibility and control costs. Today, TMS is used by organizations of all sizes, from small businesses to large multinational corporations, to manage their transportation operations and improve their bottom line.           


The size of the global market for transportation management systems, estimated at USD 10.45 billion in 2022, is projected to rise at a CAGR of 14.8% from 2023 to 2030. 


TMS is a critical component of supply chain and logistics management, and it has become an essential tool for organisations that need to transport goods and products efficiently and cost-effectively. Stay until the very end of this blog to understand the significant benefits of TMS.


What is Transportation Management System(TMS)?


A transportation management system (TMS) is a logistics platform that helps businesses plan, carry out, and optimise the physical movement of their goods while assuring strict compliance and appropriate documentation.  


TMS provides a comprehensive set of tools and capabilities that help organizations plan, execute, and monitor their transportation activities. This includes route optimization, carrier selection, shipment tracking, shipment planning and scheduling, freight payment and settlement, and performance analysis.


TMS enables organizations to improve their supply chain visibility, control transportation costs, and ensure the efficient and timely delivery of goods. It integrates with other logistics and supply chain systems, such as warehouse management systems and enterprise resource planning systems, to provide a comprehensive view of the entire supply chain.


TMS is used by organizations of all sizes, from small businesses to large multinational corporations, and across various industries, including retail, manufacturing, and transportation. By using TMS, organizations can improve their supply chain efficiency, reduce costs, and enhance customer satisfaction.


10 Key Benefits of Transportation Management System(TMS)

  • Improves Customer Service


With the rising craze for express deliveries such as same-day and one-day courier services among customers, utilising TMS can improve the efficiency at which the entire transportation operations occur in a supply chain. 


It increases real-time visibility, enabling logistics companies to proactively communicate with customers about any delays or issues and provide updated delivery estimates. A TMS can integrate with other systems, such as customer relationship management (CRM) and enterprise resource planning (ERP) systems, to provide a single, centralized view of customer data. 

  • Increases Warehouse Productivity

TMS can optimize delivery routes based on factors such as vehicle capacity, delivery time windows, and real-time traffic data, reducing delivery time and fuel consumption, and improving overall delivery efficiency. TMS can provide valuable data and insights into transportation performance, enabling warehouse managers to identify areas for improvement and track progress over time. 


It provides real-time tracking and monitoring of deliveries, giving warehouse managers and other stakeholders greater visibility into the status of deliveries, and enabling them to respond quickly to any issues that may arise. 

  • Enhanced shipment tracking

TMS integrates with GPS systems, allowing for real-time tracking of shipments and vehicles, providing greater visibility into delivery times and helping to prevent theft or loss of goods. TMS can facilitate communication between shippers and carriers, allowing real-time updates on shipment status and delivery times. 

  • Inventory Management

A credible TMS solution can help businesses maintain track of their order and shipment lifecycles in real time. They will be able to predict their inventory as a result, which will increase supply chain visibility and accountability.


 The tracking features of the TMS software will also give you peace of mind in the certainty that your customers will receive their goods on time. Having this much control over your inventory management will be beneficial for any future supply chain operations, especially when your e-commerce freight forwarding services expand. 

  • Lower Shipping Costs

As the entire TMS fast-tracks the various stages in supply chain management like optimizing the delivery routes and enhancing the shipment tracking, it further cuts down on fuel consumption and overtime by the drivers which further saves a lot of money.  

  • Supply Chain Visibility

Transportation Management System enhances data analysis, predictive analytics, real-time visibility, and carrier integration which will lead to supply chain visibility by omitting the factors causing efficiencies.          

  • Reduced Paperwork

Automation within the TMS will eliminate the need for generating invoices and shipment-related documents. Thus the administrative division involved in the process of generating documentation will also get off the burden and would be able to focus more on the other crucial tasks. Automation will also eliminate the likelihood of mistakes and improper billing and hence, will boost productivity.   

  • Better Order Fulfilment 

With improved supply chain visibility and real-time tracking, the order fulfilment process would become more accurate. Automation reduces the chances of flaws and discrepancies in the various stages of the shipping process and makes it easy to encounter the challenges faced in the shortest time possible.  

  • Efficient Dock scheduling

As transportation planning and execution become more predictable, dock scheduling becomes more effective. By coordinating deliveries with dock schedules, an efficient TMS can reduce wait times while simultaneously ensuring elevated transportation from one location to another.

  • Ensuring Repeat business

The right TMS solution will boost the overall productivity and performance of your company in addition to making you more capable of providing top-notch customer services. All these factors will finally lead to repeat business and increased referrals for your brand.   



A reliable Transportation Management System(TMS) can be a powerful tool for your business which will help you in automating and upgrading the entire supply chain and logistics. 


Some of the best logistics companies in India such as NimbusPost provide AI-powered shipping and warehouse fulfilment solutions to e-commerce businesses in India and abroad. Their comprehensive and smart warehousing solutions with real-time tracking and freight forwarding services are available at highly reasonable prices.