A Beginner’s Guide to Transportation Management Systems

The processes of supply chain and logistics are notoriously complex — and only becoming more so in 2025 as global e-commerce expands and customer expectations rise. Among all logistics challenges, the final journey from warehouse to end-user remains one of the hardest to track.

This is where a Transportation Management System (TMS) becomes invaluable.

Explore more: Wayfindr’s E-commerce Logistics Services

What is a TMS and what is it for?

A TMS is logistics software that provides real-time visibility into the transportation phase of your supply chain. It helps businesses streamline operations by centralizing all transportation data in one place, enabling:

• End-to-end visibility
• Predictive analytics
• Route optimization
• Carrier performance monitoring

While similar to a Warehouse Management System (WMS), which manages goods in storage, a TMS focuses on shipments in transit. Together, they integrate seamlessly via ERP platforms for full supply chain control.

What are the benefits of using a TMS?

From planning and execution to settlement, TMS platforms manage several key functions throughout transportation, such as:

• Route optimization
• KPI reporting
• Predictive analysis and logistics news forecasting
• Load execution and carrier rate management
• Freight and shipping tracking
• Billing and settlement

How do those benefits actually play out with a TMS? Take a look at the 6 different benefits we listed broken down below.

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Route optimization

Studies by trucking company C.H. Robinson show that each additional stop a truck makes lowers the likelihood of on-time delivery. show that the more stops a truck makes, the less likely it is to deliver on time. For example, 80% of trucks picking up single-stop truckloads still delivered on time, while 71% of trucks carrying three-stop truckloads delivered on time. Those statistics translate into real losses for your business, so it’s important to cut down on them as much as possible. 

A TMS uses machine learning to minimize delays and optimize fuel use—ensuring faster, greener, and more reliable deliveries.

KPI reporting

As a shipper, neglecting to track relevant KPIs can result in inefficient operations and money lost over time. KPIs can help shippers track performance, cut costs, and improve customer satisfaction. 

• On-time & in-full (OTIF) deliveries
• Average delivery time
• Shipment volume trends
• Carrier reliability

This empowers better decision-making based on real-time data.

Predictive analysis and forecasting 

You don’t want to have to manipulate data on your own or use outdated software to try and predict future business needs. Fortunately, today’s TMS software is capable of transforming the raw data into legible, helpful information for your business and logistics network. 

You can use a TMS to:

• Schedule reports to ensure timely and accurate information
• View digestible reports to quickly identify anomalies and weak spots in your shipping operation
• Make critical decisions based on reliable data 

Load execution and carrier rate management

When it comes to finding the right vessel for your load, the last thing you probably want to do is manually measure carrier capacity. 

Luckily, your TMS can take care of that for you, figuring out the size of your load, finding the right carrier for the job, and setting the rate all in one fell swoop.

Freight tracking

As any logistics manager knows, the infamous last mile logistics can be one of the most challenging stages for keeping track of shipments. 

TMS software can save you a headache by gathering and consolidating details on your shipments in real-time. From the warehouse to the end customer’s front door, the TMS will track the parcel through its fulfillment journey every step of the way.

Using a TMS to get such detailed tracking intel not only gives you superior visibility on package location, it also allows you to view and assess the performance of the carriers you use. You can even choose to only work with the carriers that have provided you with the best results based on the data from your TMS.

Billing and settlement

Once your shipment has been safely delivered, you can use your TMS to audit carrier invoices and complete payment transactions. They will keep track of all the details of the work, costs, and payment for you, and help you settle up when the time comes.

Why a TMS is a worthwhile investment

Although TMS requires an upfront investment, it is not uncommon or prohibitively expensive. In fact, TMS systems can lower your freight spend by around 8%. 

Even if you aren’t prepared to invest in a large-scale enterprise TMS software for your company, you can use a free, cloud-based version of the software to experience many of the benefits listed above. 

Due to the rising adoption of cloud technology and industry 4.0, more and more companies are adopting TMS. However recent studies show that only around 35% of businesses are currently using TMS platforms. 

Given all the benefits, it feels counterintuitive that a fairly low percentage of businesses are leveraging TMS to optimize their logistics. Reasons for hesitancy to adopt TMS are varied, including:

• Fear of losing control: A TMS gives you more control — not less — through real-time decision-making tools and carrier flexibility.
• Transition concerns: Modern TMS platforms are cloud-native and integrate easily with existing ERP systems.
• Budget worries: Free and low-cost options are available. Start small and scale as needed.

Work with Wayfindr to stay on top of the latest technologies

Want to stay up to date with the latest shipping tech and make sure your company sees the benefits?

At Wayfindr (formerly CBIP), we make it a point to select partners who use cutting-edge technology to optimize processes and stay ahead. When you contract with Wayfindr, you are contracting with a company that sets you up with a network of these tech-enabled partners, anywhere in the world and ready to go.

Ready to find out just how efficient your shipping logistics can get? Contact us today for a free assessment.