What Are the Different Types of Transportation Management System (TMS)?

A Transportation Management System (TMS) is a valuable tool and asset for trucking and freight companies — but did you know there are different types of TMS platforms? With so many platforms and providers on the market in the trucking industry, companies may have questions about their Transportation Management System options. Trucking companies that want to know what the different types of Transportation Management System (TMS) are can learn more with this quick breakdown.

Differences Between Shipper TMS and Forwarder TMS 

While all Transportation Management System (TMS) platforms are built to manage and optimize the movement of cargo and freight — they are not all one-size-fits-all solutions. The different types of TMS platforms are built around the user's role in the supply chain, which leads to a fundamental difference between a Shipper TMS and a Forwarder TMS. A shipper’s TMS is focused on managing internal freight operations and reducing costs, while a forwarder’s TMS is focused on managing the external logistics and finances for multiple clients.

What Is a Shipper TMS?

A Shipper TMS is a logistics platform used by companies that own and ship their own freight. Manufacturers, distributors, and retailers use this type of system to manage inbound and outbound freight operations. The primary goal of a Shipper TMS is to move cargo from origin to destination as efficiently as possible and minimize operational costs. Shipper TMS platforms help companies select the best carriers, ship cargo efficiently, track freight in real time, and audit freight bills.

Benefits of a Shipper TMS

A dedicated Shipper TMS platform gives a company direct control and oversight of its own supply chain and provides multiple benefits in cost management, visibility of freight operations, and efficiency. The automation of key processes transforms logistics from a cost center into a strategic part of the business.

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• Reduced Freight Costs: Shipper TMS platforms provide tools for route optimization, load management, and carrier rate comparison to help companies reduce costs.
• Improved Visibility of Shipments: These platforms provide real-time tracking and tracing of shipments, that allows companies to monitor cargo from pickup to delivery.
• Greater Efficiency: The automation of time-consuming tasks like carrier selection, load tendering, and freight bill auditing helps make freight companies more efficient from day to day.
• Actionable Data: Available analytics and reports on spending, carrier performance, and on-time delivery rates provided by a Shipper TMS lead to better decision-making for shippers.

What Is a Forwarder TMS?

A Forwarder TMS is a comprehensive freight management platform built specifically for logistics service providers, that include freight forwarders, freight brokers, and Third-Party Logistics (3PL) providers. These companies don't own the cargo — they work as a middle man — arranging transportation on behalf of multiple clients. A Forwarder TMS is built to manage the entire lifecycle of a shipment, including quoting and rating shipments, booking loads with carriers, generating shipping documents, handling billing, and managing carrier payments.

Benefits of a Forwarder TMS

For a freight forwarder or broker, a specialized Forwarder TMS is the central nervous system of operations. It allows them to manage a high volume of complex transactions for many clients simultaneously, which is critical for growth and profitability.

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• Improved Scalability: A Forwarder TMS enables the business to manage a growing number of clients and shipments without needing to increase staff or hours.
• Enhanced Customer Service: These platforms can include branded customer portals where clients can request quotes, track shipments, and access important documents.
• Streamlined Financial Management: Automates the process of quoting clients, generating shipping invoices, and processing carrier payments from a central system.
• Centralized Operations: Acts as a single source for all client data, carrier information, rates, and shipment details, which reduces errors and improves organization.

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READ MORE: How Does a TMS Improve Logistics Management?

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Are you a trucking or freight company that wants to learn more about Transportation Management Systems? You may be asking — what are the different types of Transportation Management System (TMS) — and this overview that highlights the key differences and benefits of Shipper TMS and Forwarder TMS platforms will help answer your questions. 

‍Contact TransPlus today to learn more about our TransPlus TMS platform and how it can help you improve freight operations!