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Transportation management systems manage four key processes of transportation management:
Planning and decision making – TMS will define the most efficient transport schemes according to given parameters, which have a lower or higher importance according to the user policy: transport cost, shorter lead-time, fewer stops possible to ensure quality, flows regrouping coefficient, etc.
Transportation Execution – TMS will allow for the execution of the transportation plan such as carrier rate acceptance, carrier dispatching, EDI etc..
Transport follow-up – TMS will allow following any physical or administrative operation regarding transportation:
Measurement – TMS have or need to have a logistics key performance indicator (KPI) reporting function for transport.
Various functions of a TMS include but not limited to:
Planning and optimizing of terrestrial transport rounds
Inbound and outbound transportation mode and transportation provider selection
Management of motor carrier, rail, air and maritime transport
Real time transportation tracking
Service quality control in the form of KPI's (see below)
Vehicle Load and Route optimization
Transport costs and scheme simulation
Shipment batching of orders