A transport management system or TMS, as defined by Gartner, is a system used to plan freight movements, perform freight rating and shopping across all modes, select the appropriate route and carrier, and manage all freight costs and payments.
Critically, a TMS facilitates interactions between an organisation’s order management or warehouse management system and the logistics activities thereafter to ensure on time delivery to the correct destination at the lowest achievable cost. A TMS is the focal point that pulls together the different moving parts of a value chain and its role players into a highly functioning logistics ecosystem while generating valuable actionable data.
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