Best Transport Management Software in 2023

What is Transport Management Software?

Transport management software (TMS) is used by companies dealing in the outbound/inbound movement of goods. It streamlines processes related to shipment, procurement, and delivery of goods. You can also use the software for route optimization/planning, carrier selection, time tracking, DOT compliance, fleet maintenance, and billing.

Transport software is a single solution ensuring there is a real-time flow of information billing accounting, transport regulation compliance, report generation, route planning, dispatching, and all other operations.

Who Needs Transport Management Software?

TMS software is designed for shippers, logistics service providers, truckload carriers, freight brokers, 3PL companies, e-commerce companies, and freight forwarders.

This software can benefit your company in moving goods from origin to destination accurately and cost-effectively. Further, it will help you in the smooth handling of all types of complexities and intricacies in the management of daily operations related to fleet transportation.

Why Do You Need Transport Software?

A company incurs a massive amount of cost in moving goods from one place to another. Such a company needs to identify the efficiency and success rate of its distribution system, and a transport management system can help perform the analysis accurately. Implementation of this software ensures improvement in shipment efficiency, cost reduction, real-time supply chain visibility, enhanced consumer experience, and maximum return on investment.

In other words, by combining ease of use with industry-standard capabilities, transportation management software helps you in carrying out your transportation operations more efficiently.

Features of The Best Transportation Management Software

TMS is important for streamlining product delivery services. All types of companies whether e-commerce, retail, distribution, etc. use these software solutions for easing their daily workflows. Here are some features that make the software reliable for companies of all types:

• Mode and Carrier Selection: This feature of the transport management solution helps in selecting the best fleet based on cost, quality, and distance. The solution provides you with multiple modes of transport to choose from as per the nature of goods and delivery time. For instance, if time is a constraint, then you will select a carrier that can deliver the consignment from the shortest route and in the quickest manner.
• Route Optimization: Transportation management systems provide information regarding the best routes available for moving carriers and delivering shipments. It uses methods like pooling, consolidation and more to optimize routes to help businesses save costs as well as improve visibility.
• Carrier Contract Management: A good transport software will simplify your carrier contracts management task by digitizing it. You will be able to track your agreements in real time and receive notifications on their renewals. The software will guide you with the exact cost that should form a part of your contract.
• Business Intelligence: TMS software can capture the data related to your transportation practices and supply chain, analyze it and then help you in making better decisions in the future. Eventually, the data analysis can be used to reduce cost, decrease product delivery time, and identify key performance indicators (KPIs).
• Track Drivers: The best transportation management software lets you assess multiple routes taken by the driver to deliver the consignment to its destination. Also, a driver’s performance can be measured; an assessment can be done to find out if there was any discrepancy in terms of the route taken or steps taken to ensure the safety of consignments. Real-time tracking proves to be a boon in case of accidents.
• Proof of Delivery (POD): The POD feature not only provides you with evidence that consignments have been delivered to the authorized person but also allows you to track the progress of the delivery. Thereby, Proof of Delivery (POD) reduces the dispute between customers & companies and facilitates better delivery experience.
• Supply Chain Visibility: The right TMS software provides a complete view of the entire process of supply chain management. You will be able to track the products en route from the point where they have been picked up to their destination. Moreover, the bird’s eye view of operations and real-time access to the data allow managers to resolve the issues in no time & be in a customer’s good books.
• Benchmark Data Compatibility: Like any other business, negotiating on the price forms part of the transportation and logistics business as well. Transport management software makes this process easier for you by providing benchmark data. It consists of carrier rates, vehicle conditions, and other transport-related information helping you close the deal on the right rate.

Modules of Transport Management Software (TMS)

Software for the transport company comes with some incredible modules to help you run your business efficiently.

• Financial Accounting: Transport management software simplifies accounting by streamlining the process of creating payment vouchers, cost allocation, assigning billing codes, etc. It facilitates passing journal entries of operational transactions easily. Also, you can regulate advance payments, and driver payment settlement using this module.
• Freight Payment & Billing: With freight payment & billing module, you can give your time to important things that were otherwise consumed by administrative activities. There will be the automation of freight bill, payment, and audit-related process. All aspects of transportation rates are taken into account, including discounts and taxes while generating an invoice.
• Report Generation: Transport software provides your managing team with relevant data in a presentable manner which makes report-making easier. You can generate insightful and valuable reports for shipment activity, freight invoicing, most used carriers, and more.
• Driver Management: This module lets you manage one of your most important assets – fleet drivers. Driver management is a comprehensive module using which you can maintain a complete record of drivers. You can handle their personal details, keep records of payment, and vehicles assigned to them.
• Trip Management: You can manage everything related to a trip using the respective module. From trip planning to trip start, advance payment, vehicle change, trip closure, driver settlement, and invoicing, every aspect of trip management can be handled with this software.
• Integrated GPS: Transportation software comes integrated with GPS technology to give you real-time location and information about the vehicle. You will get immediate and detailed insights into the status of the fleet. Moreover, integrated GPS lets you track the performance of your fleet and check the revenue generated by it.
• Fleet Management: This module lets you manage your fleet without compromising with carrier efficiency. It helps you meet required DOT compliance regulations w.r.t fleet maintenance documents and inspection reports. You can manage all the verticals of freight transportation using the fleet management module - driver, fuel usage, depreciation, etc.
• Risk Management: If you deal with the shipment of hazardous materials, the transport management system offers excellent benefits. It ensures that you transport such material as per government regulations. The software will help you in avoiding penalties and risks by automating compliance audits, report generation, and meeting regulatory requirements diligently.

Benefits of Top Transportation Management Systems

Transportation software offers the following benefits besides streamlining business workflow, improving efficiency, and enhancing customer satisfaction.

• Warehouse Efficiency: With a constant inward, internal, and outward movement of inventory, managing warehouse operations becomes crucial. The integration of transport software with the warehouse management system lets you keep a proper record of the orders, track their location in the warehouse and while they are in transit.
• Cost Efficiency: TMS software helps a business in reducing shipping cost by enabling systematic management of operations. The software helps in tracking the fleet movement, thereby, reducing cost w.r.t driver overtime and unnecessary fuel consumption. Analysis of the shortest and economic logistic route assists in achieving cost efficiency.
• Minimal Paperwork: A transport management system streamlines tasks like passing accounting entries, raising & sending invoices, generating challan, creating Proof of Delivery (POD), and producing analytical reports. Using transportation software, you not only contribute to the ‘green’ initiative but also reduce administration expenses by eliminating the scope of human error.
• Item Visibility: If transportation forms a crucial part of your business, then losing track of the fleet is bound to give you a panic attack. Transport management software can prevent you from such shock by enabling complete visibility of the vehicle. It lets you ensure timely delivery of consignments with access to inventory at each level in the supply chain.
• Accurate Shipping Order Fulfilment: Chances of reaching the right order, at the right place, at the right time increase with any top transportation management system. With real-time tracking of the shipment and complete item visibility, the possibility of shipping errors and other inconsistencies decreases. Additionally, if there are minor discrepancies, then those can be resolved immediately.
• Process Standardization: The transportation management system standardizes certain processes such as invoicing. Invoices raised at different locations are managed centrally. On creating a standard for the entire company, you define a clear path saving time and money for all your stakeholders.

Buyer’s Guide for Transport Software

• Functions: Define your requirements clearly, such as whether you need cloud-based or on-premise software. If you need it with the warehouse management module, or you will integrate it with the existing Warehouse Management System (WMS) to improve the efficiency of your warehouse. The answer to these questions will help you filter out from the possible options in the market.
• Scalability: Transportation management software should scale up (and down) as per your business requirements. For instance, if you acquire or merge with another company in the future, the software should be able to accommodate it smoothly.
• Demo/Free Trial: Follow the thumb rule- try before you buy. This motto holds true for all software. A dedicated TMS software partner will familiarize you with the nitty-gritty of the software by giving product demonstration.
• Easy to Use: The process of implementing a transport management solution should not be painful. Choose a solution that has a user-friendly interface and can be easily integrated with other systems. It should not have a steep learning curve. One-time training and you should be good to go!
• Integration: A transportation management system should be easy to integrate with the existing systems like Enterprise Resource Program (ERP) or Warehouse Management System (WMS) and enable smooth functioning of your business operations.
• Connectivity: Booking, scheduling, freight payment, a lot of information is exchanged between carriers, retail companies, suppliers and partners in the process of transportation. Therefore, connectivity remains a significant factor. And thus, software should be such that it facilitates a quick transfer of data and information.

Top 10 Transport Management Software: Comparison Chart