What is TMS?
This module helps us control a company transportation process by identifying vendors and routing solutions that help us select the best route with lower prices in each shipping use case.
The TMS process of a shipment starts with the planning step, which indicates which container items will be shipped, on which date, and on which dock door it will be prepared.
The most important part of the TMS module is defining each shipment’s rates and routes. Once a load has been created for the shipment, we can rate it using a rate engine to identify better routes and lower prices. Each rate engine could define these rates based on multiple factors. For example, a less-than-load (LTL) shipment will have different costs than a full load (FL) for the same route.
TMS can help us control invoices for customers when we have transportation charges, and it also controls the freight reconciliation processes with the logistics providers.
First, it is important to know that...