A TMS operates through several key functionalities:
- Order Management: It starts with the receiving of orders and integrates with other systems like ERP to gather necessary data. - Carrier Selection: The system evaluates various carriers based on cost, transit time, and service levels to choose the best one. - Route Optimization: It calculates the most efficient routes to minimize transit times and fuel costs. - Freight Audit and Payment: Automated auditing of freight bills ensures accurate payments and identifies discrepancies. - Performance Monitoring: Real-time tracking and analytics measure key performance indicators (KPIs) to continually improve operations.