Transportation Mangement Systems (TMS)
A transportation management system (TMS) is software designed to manage transport operations (Wikipedia 2011). A TMS helps to facilitate:
- Equipment scheduling & yard management
- Load planning - load sequence, size and delivery sequencing
- Routing & advanced shipment notification - geographical route
- Movement administration - performance management and metrics
- Consolidation - freight consolidation, challenged by lean and smaller shipment load sizes. Reactive systems are becoming more the norm, but proactive systems are easier to manage.
- Scheduled area delivery limits shipments to specific markets to selected days each week.
- Pooled delivery accumulates deliveries for high volume delivery destinations
- Negotiation - or rates, charges and services
- Control - tracing (locating shipments), expediting (moving up the priority of a shipment).
- Auditing and claim administration - audits of charges to actual shipments as well as administering claims for damage and lost shipments.
- Bill of lading - is a document issued by a carrier to a shipper, acknowledging that specified goods have been received on board as cargo for conveyance to a named place for delivery to the consignee who is usually identified (Wikipedia 2011).
- Shipment manifest lists individual stops or consignees when multiple shipments are placed on a single vehicle (Bowersox 2010).
- Freight on Board (FOB) origin pricing - sellers responsibility ends when shipment is loaded.
- Freight on Board (FOB) destination pricing - title does not pass to the buyer until delivery is completed.
- Delivered pricing - delivery charges are included and not seperated from the total price