TransX – Transport management system

A TransX – Transport management system is software that facilitates interactions between an organization’s order management system (OMS) and its warehouse management system (WMS) or distribution center (DC).

TMS products serve as the logistics management hub in a collaborative network of shippers, carriers, and customers. Common TMS software modules include route planning and optimization, load optimization, execution, freight audit and payment, yard management, advanced shipping, order visibility and carrier management.

The business value of a fully deployed TMS should achieve the following goals:

Reduce costs through better route planning, load optimization, carrier mix and mode selection.

Improve accountability with visibility into the transportation chain improve accountability with visibility into the transportation chain.

Provide greater flexibility to make changes in delivery plans.

Complete key supply chain execution requirements.

A transportation management system (TMS) is a subset of supply chain management concerning transportation operations and may be part of an enterprise resource planning system.

A TMS usually “sits” between an ERP or legacy order processing and warehouse/distribution module. A typical scenario would include both inbound (procurement) and outbound (shipping) orders to be evaluated by the TMS Planning Module offering the user various suggested routing solutions. These solutions are evaluated by the user for reasonableness and are passed along to the transportation provider analysis module to select the best mode and least cost, provider. Once the best provider is selected, the solution typically generates electronic load tendering and track/trace to execute the optimized shipment with the selected carrier, and later to support freight audit and payment (settlement process). Links back to ERP systems (after orders turned into optimal shipments), and sometimes secondarily to WMS programs also linked to ERP are also common.

These systems have been offered with different types of licensing arrangements. The four main offerings are: On-premises licensing (traditional purchased license)

Hosted licensing (remote, SaaS, Cloud)

On-premises hosted licensing (a blend of 1 and 2)Hosted – TMS free of licensing (same as 2 but free with no license requirements)Additionally, some software providers were either acquired or merged with supply chain management consultancies and started offering shippers “blended” managed and software services as an outsourced process. Primary Tier 1 TMS providers are still independent, carrier and 3PL neutral, and ERP neutral. While ERP providers are moving to improve their on-premises transportation management offerings by adding TMS modules to their existing, implemented base, the advent of Software as a Service or “SaaS” delivery resulted in a surge of emerging TMS providers.

Functionalities Transportation management systems manage four key processes of transportation management Planning and decision making: TMS will define the most efficient transport schemes according to given parameters, which have a lower or higher importance according to the user policy: transport cost, shorter lead-time, fewer stops possible to ensure quality, flows regrouping coefficient, etc.

Transportation Execution? TMS will allow for the execution of the transportation plan such as carrier rate acceptance, carrier dispatching, and EDI.

Transport follow-up: TMS will allow following any physical or administrative operation regarding transportation: traceability of transport event by event (shipping from A, arrival at B, customs clearance, etc.), editing of reception, custom clearance, invoicing and booking documents, sending of transport alerts (delay, accident, non-forecast stops.) Measurement: TMS have or need to have a logistics key performance indicator (KPI) reporting function for transport.

Various functions of a TMS include: Planning and optimizing of terrestrial transport rounds

  • Inbound and outbound transportation mode and transportation provider selection
  • Management of motor carrier, rail, air and maritime transport
  • Real-time transportation tracking
  • Service quality control in the form of KPIs (see below)
  • Vehicle Load and Route optimization
  • Transport costs and scheme simulation
  • Shipment batching of orders
  • Cost control, KPI (Key performance indicators) reporting and statistics.

What Is Transportation Management Software?

Transportation management solutions (or TMS) help users plan and execute deliveries across the supply chain. Efficient deliveries depend on informed route planning, freight consolidation, and enhanced visibility. By providing managers with appropriate tools like route optimization, load building and track and trace, the right TMS system can improve fleet performance and reduce supply chain expenditures. Along with warehousing solutions and fleet management systems, TMS solutions constitute the logistics side of an overall supply chain management system.

Transportation systems offer a number of important tools to maximize efficiency and reduce costs associated with product shipping and logistics. Some of these features include strategic freight sourcing tools, multi-modal planning functionality, route optimization, freight consolidation and dock scheduling.

These features provide the following functionality:

Automated carrier selection: A TMS improves the carrier procurement process by determining the smartest carrier and mode options for each delivery.

Shipment consolidation: Consolidating shipments is the single fastest way to cut shipping costs. A TMS will assess all scheduled shipments and arrange them inefficient bundles, maximizing their load consolidation with each delivery.

Route optimization: A TMS uses maps, road speeds, traffic data, fuel costs and modal limitations to determine the most efficient route to save time and gas. In addition to TMS solutions, fleet management software also commonly includes route optimization functionality.

Freight estimate optimization: Whether you are submitting bids or simply calculating shipping costs, a TMS will calculate the cost of delivery based on cargo weight, mode of shipping, delivery distance and other variables, and provide comprehensive reports and needs analyses to facilitate more cost-efficient choices.

Payments: These systems include accounting functionality that helps users reconcile invoices with shipments, audit freight bills, reduce payment errors and establish tolerances for match-pay settlements.

What is the work of TransX technology?

TransX also referred to as transportation and logistics management, studies the processes involved in the planning and coordination of delivering persons or goods from one place to another. During courses, students learn to master transportation management system (TMS) and other strategic business tools.

Benefits of TransX:-

The Major Benefits of Implementing a TransX- Transport Management System for Your Business:

Managing the supply chain for a business is a daunting but a necessary task. However, there are much TransX software available today that can help with it. Transportation management systems are computer-based software companies intended to manage transport operations and deals. They assist a company in controlling the day to day processes involved in the transportation of their goods. These critical systems have made a real-time execution and information retrieval more mainstream, and much easier for you when it comes to supplying chain and logistics. With many various transport companies and services available, it is important to consider what particular services are most vital to the success of one’s business.

The Options Available for TransX Systems; There are three options available. First, the traditional version in which they purchase traditional on-premises licenses. Second, the remote version in which it is web hosted. Lastly, the third is on premises hosted licensing which blends the first two options together.A blended system has quickly grown in popularity because of the additional flexibility that it provides a business. When a company chooses a blended transportation management system, it receives not only real-time usage and but also freight capacity. Often the software is provided for little to no cost and then a company pays for the freight capacity service.

The various transport management companies will help companies determine the best truck routes and shipping options. They will review the company’s needs and then implement systems based on whatever is most important to the shipping customer. They may focus on cost to transport, better lead time.

Additional Benefits of a TransX System: ATransX- Transport Managment System also helps with important follow up responsibilities. The system can do the billing and invoice for shipment, track shipment details, and monitor warning regarding delays with planned shipments. Another great tool that makes a blended TMS a good investment is that they can also measure how well a business supply chain functions. It has real-time vehicle tracking, true transport cost, and customer service control. A company can truly profit from the Key Performance Indicators (KPI) which involves tracking and reporting statistics. Transportation managers can determine how much a load cost down to the pound to transport. Being aware of the true cost to ship something can help a business better budget for such needs and also measure how well a company is doing compared to previous quarter or years. Along with this feature they can also track the percentage of on-time deliveries and pickups. Because this can affect the cost of shipment, it is important to monitor.

Increase Your Business Effectiveness Sooner Than Later: When a company makes the decision to use blended transportation management software, they do so to increase the overall effectiveness of the business. A blended TMS also encourages the company to be financially frugal without giving up the ability to customize the software to best fit their needs. Because a company is always striving to be more customer-service orientated, having an excellent way to track shipments, problems, and deliveries is a very valuable quality of the software. Another positive aspect of the blended software is being able to know the total cost that a company spends on shipping so that the company can become more fiscally responsible.

Finally, while every business would benefit from a transportation specialist, those who utilize a blended system can enjoy overall cost savings, positive training, and support for a traditional transport management system.

Features of TransX system:

  • Safety and security.
  • Terminals- must be accessible.
  • Reliable- capable of delivering goods in the required condition.
  • Fast- relay goods within the time required.
  • Must have a wide coverage.



Implementing a Transportation Management System (TMS) can streamline your business decisions, improve efficiency and help satisfy your customers. Who doesn’t want that?The trick is finding just the right one. But how do you know you found the right one? The right TMS should help you make better business decisions and save you time and money. ?But to get the most out of the software, you need to know the best features that will help your business grow.Carrier Contract Management is trying to track multiple carrier relationships with varying contracts? Most businesses are. The right TMS will simplify carrier contract management. When you digitize contracts, all your team members can easily compare contracts and costs. Look for a TMS that can:

Track all your individual terms and carrier agreements in real-time.

Alert you when a contract is up for renewal, and include proper discounts in new contracts.

Display the total costs, including accessorial charges, so you can easily select the lowest cost carrier.

Help establish pricing. A TMS can calculate the exact cost of delivery, so you know what to charge your customer.

Risk Management: If you’re in the business of shipping hazardous materials, a TMS has big advantages. As you know, the government won’t hesitates to fine you for improperly prepared hazmat shipments. In one recent case, Burwood Aviation Supplies was fined by the UK Civil Aviation Authority for failing to include proper paperwork and warning labels when shipping an oxygen generator. The U.S. Federal Aviation Administration may fine Amazon for allegedly shipping paint that leaked through its box. If you face similar issues, pick a TMS that manages your specific hazmat paperwork, including packaging and proper labeling.

A good TMS can help you avoid international shipping risks by automating audited processes, generating reports and ensuring due diligence with in-country regulatory programs or cross-border customs requirements.

International Logistics Functionality: If you currently work globally or dream of international expansion a TMS can make international shipping immeasurably easier. Look for these features: Multi-language interface screens;

Help to select air or ocean carriers;

Supports foreign currencies;

Manages commercial invoices, SEDs, NAFTA paperwork and other necessary shipping papers for international deliveries;

Calculates value-added taxes, cross-border fees, and freight forwarding charges.

A good TMS keeps up with ever-changing trade agreements and embargoes. It can perform system checks, assign export control classification numbers and complete other functions to assist with trade management. By performing an embargoed countries check and restricted party screening, a TMS can help protect you from inadvertently violating export control regulations.

Item Visibility: If shipping is a crucial part of your business, you have probably had a panicked moment when a shipment is MIA. A TMS should prevent such panic attacks. You will have full visibility down to the item level, and be able to thoroughly track shipment status information from pick-up through delivery. Your TMS should offer:

  • Auto pick up
  • Integration via EDI with a carrier
  • Automatic notifications
  • Exceptions alerts

Visibility will make your customers happy, reduce cycle times and help manage your logistical costs.

Parcel Shipping Support: Industry trends against storing big inventories have prompted demand for smaller, more frequent shipments. If this is a concern for your business, choose a TMS that handles parcel rating and routing as well as the traditional truckload and less-than-truckload.

Freight Settlement: A TMS can simplify accounting by:

  • Auditing and paying freight invoices
  • Creating payment vouchers
  • Allocating costs
  • Assigning billing codes for accountability and budgetary purposes

A TransX can move you from a stack of paperwork toward one invoice, one bill, and one payment.

Business Intelligence: A TMS can analyze your shipping practices. Once you have some hard data, you’ll make better decisions about your business future moves. Your TMS should be able to capture transactions and data from multiple sources, and use analytics and big data to Minimize logistical costs;

  • Reduce shipment delivery times
  • Develop performance metrics and key performance indicators (KPIs)
  • Create computer models to predict supply chain issues

Benchmark Data Capability: Everybody wants to negotiate better rates. A TMS gives you the benchmark data you need for negotiating by collecting carrier rates and service information.Don’t rush into setting up a TMS. As you can see, there is a lot to consider. And each business and leader will have different priorities. So before you select a TMS, make sure it offers the features listed above. Then consider the specific demands of your business, because, in the end, you want to ensure your software has all the features it needs to get the job done.


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