What Is TMS Software? 5 Benefits Freight Brokers Can Take Advantage Of

What Is TMS Software? 5 Benefits Freight Brokers Can Take Advantage Of

What is a TMS software and it’s purpose?

A transportation management system (TMS) is a solution designed to help manage organizations and business more efficiently.

It provides tools that help streamline daily tasks, provide full visibility into freight and automate virtually every step of load tendering.

Different types of TMS

There are currently 3 kinds of TMS software available to match the three different organizational types in the transportation management industry

  1. Shipper TMS – Streamline and automate transportation, ERP and warehouse processes related to the execution of shipments. Receive valuable analytics and insights to save time and reduce spend on transportation.
  2. Broker TMS – Helps freight brokers and 3PL’s source capacity, book loads, manage carriers, automate invoicing, and visualize reporting to improve service levels and reduce costs
  3. Carrier TMS – Streamlines operations while helping carriers find loads for them to fulfill

Each TMS is designed exclusively for the organization type at play, each having their own unique set of capabilities and features, but the general goal is the same – to automate processes and help organizations run more efficiently.

How much does TMS software cost?

TMS software pricing will often be determined by organization size, the number of integrations, number of users,

Pricing will also be determined by the location of TMS.

  • On-premise TMS can cost organizations anywhere from $50,000 to $400,000 annually to implement.
  • Cloud-based TMS software which are hosted by the TMS brand itself will generally be priced from around $2-$5 per load or have a monthly subscription starting around $500

To learn more about pricing, factors, and cost of TMS software; check out our in-depth article.

How much difference does a TMS make for freight organizations?

Those who’ve never heard of a TMS may not understand the significant difference between organizations who use said software and those who don’t.

Implementing TMS into your organization is like going from a black and white TV to a 1080p flatscreen. The difference is real and felt all throughout the organization, from employees to general operations.

Case studies show that organizations who use a TMS have significant growth in revenue. Take for example our SEL case study. By implementing Descartes Aljex TMS, brokerage SEL Supply Chain Solutions was able to increase their revenue by $38 million in one year, a 292% increase in growth!

How is this possible?

By utilizing a TMS, SEL was enabled to procure, plan, optimize, execute, and settle freight movements with full visibility and less friction that resulted in 20%-25% time savings for their staff and a reduction in operational costs.

What are the best ranked TMS software’s available?

According to G2, the top 10 highest rated TMS brands available on the market are for Winter 2022:

  1. Descartes Aljex

    • 100% of customers among Descartes Aljex have claimed they are easy to do business with
    • The platform hosts a sizable network of brokers, 3PLs, shippers, and intermodal users who automatically orchestrate millions of freight shipments every year
  2. GoComet

    • Primarily used for end-to-end logistics profitability, GoComet covers from warehouse to to doorstep
    • Trusted by 200+ global brands across 35 countries
  3. MyCarrierTMS

    • Starts out with free pricing with limited capabilities. Pro version starts at $50 per month
    • 95% customers report great ease of use and 98% report great support – making it one of the more user-friendly TMS software’s out on the market
  4. Cargobase

    • A full-fledged modular TMS platform that covers all freight modes, Cargobase helps simplify freight for all
    • 95% of customers report simplicity and ease of use among the platform
  5. Ramco Logistics

    • Reviews rate 100% ease of use and 100% ease of admin among clients
    • Enables optimization and maximizes productivity through disruptive tech around mobility, Command Center & in-memory optimization.
  6. Freightview

    • Many LTL brokers report great utilization for Freightview TMS
    • Great reviews – of the 90 posted, all are four and five star reviews
  7. Turvo

    • Connecting people and organizations, allowing organizations to digitally transform their workflows with cloud-based software and mobile applications
    • 4.5/5 star reviews
  8. FleetX

    • AI driven freight automation platform which helps digitize end to end operations and provide real time actionable insights using IoT and big data analytics
    • 44% less expensive than the average Fleet Management product
  9. FreightPOP

    • Single login platform for all transportation management, including inbound and outbound freight management across parcel, LTL, TL, ocean, and international air
    • Rated 4th easiest to use among TMS platforms
  10. Oracle Transportation Management Cloud

    • Control and reduce costs, optimize service levels, support sustainability initiative, and create flexible business process automation within their TM networks
    • Averaging 4.0/5 star reviews

How does a freight broker TMS help me run my business more efficiently?

The goal of a freight broker TMS is to help streamline day-to-day business operations and automate manual tasks.

For example, managing details of customer accounts by storing all of the customer information in a single online system. It also improves planning and decision making by helping to identify the most efficient transport options based on important business parameters such as cost, lead-time, number of stops and more.

A TMS makes it quick and easy to manage billing and payments electronically, audit freight bills, and pull various reports needed to manage the financial aspects of the business.

Will a freight broker TMS give me full visibility into shipments?

Yes. A modern freight broker TMS will include embedded visibility solutions that reduce supply chain disruptions by automating communications and providing real-time visibility into shipments across multiple parties and modes of transportation.

It provides real-time views of shipments and access to details like load status, ETA, and last known location.

What are the benefits of utilizing freight broker TMS?

  1. Automation – TMS’ helps eliminate most manual processes and streamline end-to-end transaction processing and tracking, from quoting to load assignment, management, and tracking, to financials.
  2. High Quality Data – Top TMS systems help provide new data and information needed to make fast, confident decisions in selecting the best mode and carrier to cover customers’ loads.
  3. Safety and Security – Security features and permissions contained in a freight broker TMS will control who can view which types of information, such as potentially sensitive or proprietary data.
  4. Customer Service – TMS reporting and analytics give brokers the ability to see the cause and effect on customers such as on time deliveries and carrier performance.
  5. Lower Costs – TMS analyzes data such as the numbers and finances of lanes/routes. From there it can source the top routes and carriers based on efficiency and cost.

How will a freight broker TMS add value to my business?

A well-designed TMS will let you quickly access and compare current and historical pricing information to help make the most informed choices to get the best possible lane pricing.

It will also provide a number of management reporting and analytics tools to help you measure performance to make better informed strategic decisions.

Document storage and retrieval options provided by a freight broker TMS will help reduce paper clutter and increase productivity by simplifying document imaging, management and distribution of vital documents.

By giving real-time views into shipments and supplying status details for each load, a TMS helps the team react quickly to possible delays to improve customer satisfaction and increase on-time performance.

How will a TMS help with dispatch?

A transportation management system (TMS) should offer map-based dispatch, which provides an intuitive graphic view that’s easy for the organization to scan and monitor loads.