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Transportation Management Systems

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Transportation Management System (TMS)

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A platform designed to streamline the shipping process; it's a subset of supply chain management concerning transportation solutions.

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Route Optimization

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The process of determining the most cost-effective route; it's not necessarily the shortest route but the one that considers various constraints and requirements.

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Load Planning

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Involves the strategic packing of goods in an attempt to optimize space and weight distribution within a transport vehicle.

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Carrier Management

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The activity of managing the use of carriers who transport goods; it includes negotiations, contract management, and performance evaluation.

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Freight Audit and Payment

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A system that ensures the accuracy of freight bills by auditing and verifying invoiced charges against the negotiated rates and terms.

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Consolidation

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Combining smaller shipments into a larger one to take advantage of reduced shipping rates and improved security.

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Electronic Data Interchange (EDI)

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The transfer of data between different companies using networks, such as VANs or the internet, often used for electronic purchase orders and invoices.

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Shipment Tracking

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The capability to track the real-time location of shipments from origin to destination, offering visibility to the shipper and the receiver.

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Warehouse Management System (WMS) Integration

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The process of connecting the TMS with WMS to enable seamless data flow and create synergies between transportation and warehouse operations.

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Analytics and Reporting

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The functionality within a TMS that helps analyze transportation data to identify trends, generate reports, and make informed decisions.

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Mode Selection

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Determining the most efficient and cost-effective method of shipping goods; modes include air, rail, truck, and ship.

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Cost Allocation

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A feature in TMS that allocates transportation costs to the correct department, product, or business unit based on predefined rules.

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Integration Capabilities

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Refers to the ability of the TMS to seamlessly connect with other systems such as ERP, CRM, and supply chain modules for data exchange and process efficiency.

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Batch Shipping

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The function of combining multiple orders into one shipping instruction to streamline processes and reduce administrative work.

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Carbon Footprint Reporting

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A feature of some TMS platforms that tracks and reports on the environmental impact of transportation activities to support sustainability efforts.

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Cross-docking

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A logistics procedure where products are unloaded from incoming vehicles and then immediately loaded onto outbound vehicles, with minimal or no storage time.

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Advanced Shipment Notifications (ASN)

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A document that provides detailed information about an incoming shipment to the party receiving the goods, often transmitted electronically.

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Multi-modal Transportation

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The use of more than one mode of transportation to move shipments from origin to destination; it can reduce costs and improve flexibility.

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Rate Shopping

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A tool in TMS that compares the rates of different carriers to find the best shipping rate for a given package or shipment.

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Contract Management

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Utilizing a TMS to manage transportation contracts, agreements, and associated documents, ensuring compliance and leveraging negotiated rates.

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