What is a transportation management system?

A transportation manager may oversee the receiving and shipping of a company’s goods.

Transportation management is the practice of organizing and optimizing all aspects related to the movement of goods and services. Professionals who practice transportation management are often concerned with route planning, estimating packing and delivery times, and budgeting. A transportation management system is any type of computer software that helps transportation managers optimize transportation-related supply chain processes. Most of these programs are designed to help managers plan transportation, complete transportation-related paperwork, or enter data and take accurate transportation-related measurements.

Managers who need transportation management systems are often responsible for orchestrating multiple projects at once. A system can allow a manager to analyze the key dates and costs associated with each project. This information can allow a manager to prioritize transportation processes. The software can also help a manager deploy manpower and develop the most profitable routes.

It is also common for a transportation management system to help with administrative tasks. For example, a program may have the ability to record and store invoices and bills of materials. Drivers’ departure and arrival times at locations can also be recorded using a transportation management system. Notifications about bad weather and road closures can be sent to drivers through some management systems.

One of the most useful benefits of a transportation management system is that it allows managers to track and record transportation-related metrics, often in real time. An administrator has the ability to track how long it takes certain drivers to complete routes. Managers note and record vehicle weights and capacities. This software can also generate calculations of costs per unit of distance or weight.

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While the basic management systems are designed for managers responsible for monitoring road and air transport, some systems have more specific purposes. For example, a manager who is more concerned with international shipping might benefit from a program capable of working with multiple currencies. Similarly, an organization that specializes in renting cars to customers can benefit from systems that perform calculations based on weight, time, and distance.

Larger companies with complex transportation management needs often purchase management software that managers can install on individual computers and networks. Small businesses may prefer on-demand software that can be accessed over the Internet. This type of software generally requires users to pay usage fees. Some open source programs can be downloaded for free or for minimal prices.

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