Did You Know There are Different Types of Transportation Management Systems?

There are many different types of shipping software. Choosing the right one can affect the warehouse, logistics, buyers, sales, accounting, IT, and executives. Shipping software, typically referred to as Transportation Management System (TMS), is best selected when you understand the differences and weight those against what your needs are. 

Before you make a decision on what solution fits you best, do your research. Keep in mind your current needs, future needs, and of course, your budget. Discuss the situation with all the departments in your company since the right TMS can be a net benefit for all departments and teams within an organization.

There are two types of TMS. There is on-premise client server-based TMS and a cloud-based TMS, which is referred to as SaaS. The major benefit of SaaS is that your IT Department will not need to maintain any hardware or software onsite. This speeds up the implementation of the software from a matter of weeks or months to just minutes.

Some TMS systems were specifically made for shippers and some were designed for freight forwarders, freight brokers and carriers. The software made for shippers fall tend to fall into 4 major categories:

• Parcel software - Small package carriers like FedEx, UPS, DHL, USPS
• LTL/FTL software - Pallet shipments for less than truckload and full truckloads
• International shipping - Large freight shipments sent via air and ocean)
• Intermodal software - Parcel, LTL, FTL and international shipping

And not only are there different kinds of TMS software to chose from, there are varying priorities among a business' departments on what the key features should be. 

• IT prefers software that does not require management onsite
• Sales wants software that works with their CRM and can quote any shipment to anywhere
• Shipping and logistics want a single tool
• Customer service and accounting want quick and easy access to handle customer queries and to generate reports 
• Executives want accountability, peace of mind, and a quick ROI

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