Transportation Management System (TMS) | TMS Software| MPO
Why combine order management with transportation management?
Transportation management systems (TMS) have historically been stand-alone units that work alongside order management systems (OMS). The OMS groups orders then transfer them to the TMS in batches to process and execute shipments. This approach has become too limiting and restrictive to effectively operate in the modern supply chain.
Combined order management and transportation management natively built on one platform (otherwise known as an “order-centric TMS”) provides incredible benefits, such as order-level reporting and faster speed. ‘Natively built’ means that order, logistics, and transport management capabilities are built from the ground up to work together, rather than through separate systems obtained through mergers and acquisitions. As such, users enjoy:
- Enhanced transparency and control over the shipping process
- Native support for multi-modal, multi-leg freight
- Management by exception for enhanced decision-making, prompt in-line actions, and superior customer service
Because it spans the order planning stage, an order-centric TMS applies information and rules about inventory, allocation, and replenishment to make smarter planning and execution decisions when breaking up orders into shipments. The order-centric TMS is highly configurable for flexibility. When changes to partners, needs, or context call for new parameters, updated rules allow the system to immediately adapt. When issues or obstacles are met along the way, real-time communication and alerts offer agility and immediate course correction. And, because of its comprehensive overview of both the individual order as well as the end-to-end supply chain, businesses can effectively orchestrate orders across their networks while also addressing details on a granular level.
The order-centric structure captures not only transport costs, but all logistics costs including handling, detention, and warehousing.
