Transportation Management System (TMS)
A software platform used by shippers, brokers, and 3PLs to plan, execute, and optimize the movement of freight. A TMS automates carrier selection, rate comparison, load tendering, shipment tracking, freight bill audit, and performance analytics. Modern TMS platforms integrate with ERPs, WMS systems, and carrier networks via EDI or API to create a seamless digital freight management workflow.
Detailed Explanation
A software platform used by shippers, brokers, and 3PLs to plan, execute, and optimize the movement of freight. A TMS automates carrier selection, rate comparison, load tendering, shipment tracking, freight bill audit, and performance analytics. Modern TMS platforms integrate with ERPs, WMS systems, and carrier networks via EDI or API to create a seamless digital freight management workflow.
Example
A shipper's TMS automatically receives an order from their ERP, compares rates from 12 contracted carriers, selects the best option based on price and transit time, tenders the load electronically, and tracks it through delivery.
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