What is TMS? Benefits of TMS for Logistic Software!

On 30 Jun., 2021

Unveiling the 11 top benefits of using the Tracking Management System(TMS) that will take your business to new heights!

What is TMS? Benefits of TMS for Logistic Software!

Each sector that has everything to do with the transportation of goods requires an effective tracking system to efficiently ensure the movements of transportation fleets.

It also allows entrepreneurs and businesses to improve operations, drive business and provide the best possible services to customers.

If you also own a business in retail, distribution, manufacturing, or e-commerce. In that case, you must have realized the need for tracking the physical movements of the products to ensure quick reach to your customers.

Today, I will discuss such tracking software in this blog post to remove all your worries and multiply your business growth manifolds once you integrate them into your business.

But before getting deep into the discussion, let's look at the following facts and figures.

Do you know?  As per a report, parcel shipments will rise from 17% to 21% by the end of 2021.


The tracking system that you desperately need for your business is TMS (tracking management system) that allows you to plan, execute and optimize the physical movement of products so that you can take your business to a new height. 

You can easily optimize the daily operations of your transportation fleets and, if necessary, guide your staff to reach the destination on time.

Now let's discuss in detail the benefits of TMS for your business objectives.

Benefits of Tracking Management System

There are multiple benefits of a TMS that helps businesses to move freight from starting to the destination accurately and cost-effectively. So, before selecting a TMS, let's discuss the following benefits. 

1. Improved cash flow

While integrating TMS for your business will help you reduce shipping costs. It will analyze the financial requirements of each logistical route and allow you to manage extra costs on shipping. 

What it does is that it collects user-oriented suggestions to reduce expenses in specific areas like fuel consumption and override. Hence, it lets you manage your overall costs efficiently.

2. Inventory Management

It is the most helpful feature of TMS as it monitors the life cycles of each order and shipment on a real-time basis and updates you regularly. As a result, you get an accurate prediction for the stock that effectively improves your supply chain network. 

In this way, a TMS gives you confidence that your customers are receiving their shipments on time, which motivates you to plan better for the inventory you have at the time. Thus, you can handle inventory without any extra effort.

3. Supply Chain Visibility

Since you need to make supply chain visibility better for proper goods movement for your business growth, TMS lets you monitor it quickly. The complete operational visibility and access to real-time data increase the transparency of the supply chain, which is a huge plus for your business growth.

Moreover, TMS assists managers to act quickly on any opportunities that come along the way and resolve the issue if any come up. Hence it maintains good relationships with your consumers by providing them the full support and assurance for any query.

4. Accurate Order Fulfillment

Each business owner wishes to fulfill the orders given by consumers accurately. TMS software ensures the shipping of goods to be accurate and on time. With real-time tracking, complete supply chain transparency, and timely shipping of products lets you increase order fulfillment sharply.

Moreover, if shipping errors come in between, you don't need to worry as TMS can resolve them efficiently.

5. Optimized Routing through Pool Distribution

Since order cycles have shortened and shipment sizes have shrunk, routing has become more critical than ever. The correct tracking management system software helps consumers implement pool distribution, which is a much cheaper and faster delivery method. 

In such a way, you get greater visibility and control over your transportation fleets. Moreover, The consumer chooses the optimum pool point to decide which shipments should be picked up or delivered, making your tasks easier to provide the products at the pick-up point.

6. Minimal Paperwork

You don't need to do much paperwork, as TMS saves you lots of time for cumbersome paperwork. In addition, it is pretty capable of handling the accounting part of your business. You are also safe from incorrect billing, invoice errors, and other wrongdoings.

Moreover, by implementing TMS to your business perspectives, you are highly relieved from excess paperwork, and overall efficiency shoots up.

7. Integrated Planning and Execution

Whatever business you may own, the most crucial part is planning and executing the ideas accordingly. The tracking management system collaborates with existing systems to integrate planning and execution.

There are few points regarding the management of transportation needs which you the following:

  • Buying and order management systems

  • Warehouse Management system

  • Customer Relationship Management

  • Supplier Relationship Management

This complete integration will let the company execute orders through the most cost-effective carrier.

8. Tracking Drivers En-Route

With the help of TMS, you can track drivers easily and ensure a proper channel for delivering the goods. It also assists you in assessing the drivers quickly on an individual basis. Moreover, the user can track their efficiency and give feedback wherever it is necessary.

In such a way, implementing a tracking management system proves fruitful for your business to check drivers' activity, like whether they are following the right path for delivering the goods or not.

Moreover, the track management system also provides the ability to view where drivers and shipments are located in real-time. The TMS includes information on what amount of time a route takes, and this can then create an efficient route schedule.

Also, this provides information as to which drivers and routes are most efficient.

9. Improved Customer Experience

Since in today's world, customers want fast delivery, last-minute order changes, and customized delivery times. Therefore, you must have put all efforts into solving the issues and fulfill the orders according to their convenience.

Thanks to the track management system, you can quickly provide customers with a better experience by integrating this unique system into your business.

Indeed, there may be some issues occurring meanwhile to finalize the things. However, the customer operability module is the real challenge businesses face to adopt user operations that meet their expectations.

So, now you can be relieved as TMS will automate the system to monitor customer responses extensively.

10. Warehouse Efficiency

Each transportation business requires maintenance of the warehouse efficiently. Moreover, the warehouse helps you keep your stock up-to-date so that you can deliver the goods on time.

TMS offers you several advantages in which warehouse efficiency is one of them. First, the more time you spend working with the transport management system, the more you will manage the warehouse efficiently.

With the implementation of TMS into your ecommerce sector, You can also decrease the time for freight management. In addition, it assists you in monitoring the freight to track the least distant route to reach the destination.

You can also reduce the time of data entry while integrating a track management system for your business.

11. Repeat Business and Referrals

The correct track management system saves your time and money. Moreover, it increases your company’s overall productivity and efficiency. But most notably, each of the aspects mentioned above contributes towards your ultimate aim as a business: getting repeat business.

Further, You want your customers to choose your services repeatedly, and the right TMS will ensure that they do so. Improved customer experience through a track management system will also enhance the likelihood of referrals.

Summing Up!

Undoubtedly, a Tracking management system for accelerating business growth is relatively essential. Whether it is ecommerce, retail, or distribution everywhere, integrating TMS will provide entrepreneurs with unexpected new developments in the respective sector.

You can easily comprehend from the blog post discussion that it is the most helpful weapon in your arsenal that will help you fight with your competitors and establish your brand worldwide.

Although the savings rate initially might be slow, you will reap more incredible benefits within a short period later on.

Moreover, you can also contact logistic software companies to get TMS software developed for the wellbeing of your business. Once you integrate the TMS software into your logistics business, you will be amongst those who share most of the profits in the ecommerce, retail, or distribution sectors.

Frequently Asked Questions

Q: What are the five major vital components of a strong TMS?

Indeed, all the TMS are not equally good as it depends on the number of components you implemented while developing the software. However, there are five major components you should focus on to get strong TMS, and these are the following.

  • Cloud system 

  • Blockchain connectivity 

  • System integrations 

  • AI and machine learning 

  • Logistics partnership

Q: How does a track management system work?

TMS enables businesses to route freight based on real-time data and with a wide-carrier mix. It's a centralized estimation and routing system – that allows you to complete entire logistics planning, execution, and tracking.

Q: How much does a TMS system cost?

The cost of TMS software can be as low as 10,000 dollars, plus an annual maintenance fee, or as high as 250,000 dollars, plus a maintenance fee.