Transportation Logistics Software: What You Need to Know

Transportation logistics is one of the keys to a well-run supply chain, and as is the case in most industries, there are potentially massive benefits to be had by utilizing purpose-built software.

Specialized transportation logistics software can take an inefficient part of the supply chain and turn it into a well-oiled machine. So, if your business handles transportation logistics within a supply chain, it’s well worth your time to explore how software like this can help you maximize profits, create efficiencies, and increase output. 

We’re going to move quickly through what a small or medium-sized business should absolutely know about transportation logistics, but if you want to skip ahead to a specific section, click one of the headers below: 

• What Is a TMS?
• Which Software Is Used for Transportation Logistics?

What Is a TMS?

A transportation management system, or TMS, is a tech-powered solution that logistics professionals can use to manage and optimize the transportation part of a supply chain. In other words, this logistics management software is crucial for managing the physical movement of goods from one location to another.  

A TMS is typically part of a larger supply chain management system since the transportation aspect is just one cog in the larger machine. Nevertheless, an effective TMS can generate significant efficiencies that result in a smoother workflow for transportation businesses.

Transportation Management System characteristics

A TMS, also known as transportation management software or a transportation management solution, typically provides a few key capabilities to its users. At a high level, a well-built TMS will give logistics operators more visibility into essential day-to-day transportation operations and help them ensure that every delivery is made on time and efficiently, whether the delivery is made by van, plane, or cargo ship.  

Here are some of the key characteristics of a TMS:

Planning. Transportation management systems take what can be an overwhelmingly complicated process and simplify it by letting logistics operators make all of the important planning decisions in one central platform. Rather than having to combine make-shift free logistics software like Google Maps along with an Excel spreadsheet, professional TMS solutions allow users to automatically build routes and import thousands of orders at once. You can even plan weeks in advance and customize the route based on time window constraints, vehicle capacities, driver particulars, and more. 

Fulfilment. There are a lot of moving parts when it comes to the transportation of goods. That’s why modern TMS solutions incorporate features like live tracking and real-time modifications so that fleet operators can make informed decisions based on up-to-the-minute data and solve problems more effectively. 

Optimization. Information is power, and that’s why the best TMS solutions offer detailed analytical capabilities based on historical data so that you can optimize your operation by eliminating inefficiencies. 

Which Software Is Used for Transportation Logistics?

There are many different software options when it comes to transportation logistics, but the best option for your individual business will depend on your specific use case. 

That said, there are some commonalities between transportation logistics software providers. Most reputable TMS offers features like automated planning, the ability to adjust routes based on vehicle and driver capabilities, specific customer requirements like delivery within a particular time window or assembly, and proof of delivery, just to name a few. These are some of the most sought-after features by small and large transportation businesses alike. 

Logistics software examples

If you’re looking for a couple of specific examples of logistics software programs, consider companies like Oracle and OptimoRoute, which provide software for logistics management. 

Oracle is a large multinational tech company that offers a wide range of software applications dealing with advertising, finance, logistics software for trucking, and much more. Oracle is a $200 billion-dollar company and so, as you can imagine, its solutions may or may not be suitable for small to medium-sized businesses since it largely focuses on the enterprise-level market and its software can be fairly expensive.

OptimoRoute serves businesses of all sizes and offers all of the features that we’ve discussed here and then some. Our software is used by businesses that are involved in logistics management to plan and optimize routes, whether they consist of ten stops, 100 stops, or 1,000 stops. If you want to learn more about how you can incorporate transportation logistics software into your business, check out this detailed route planning software guide.