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Transportation Management Systems
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Transportation Management System (TMS)
A platform designed to streamline the shipping process; it's a subset of supply chain management concerning transportation solutions.
Route Optimization
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.
Load Planning
Involves the strategic packing of goods in an attempt to optimize space and weight distribution within a transport vehicle.
Carrier Management
The activity of managing the use of carriers who transport goods; it includes negotiations, contract management, and performance evaluation.
Freight Audit and Payment
A system that ensures the accuracy of freight bills by auditing and verifying invoiced charges against the negotiated rates and terms.
Consolidation
Combining smaller shipments into a larger one to take advantage of reduced shipping rates and improved security.
Electronic Data Interchange (EDI)
The transfer of data between different companies using networks, such as VANs or the internet, often used for electronic purchase orders and invoices.
Shipment Tracking
The capability to track the real-time location of shipments from origin to destination, offering visibility to the shipper and the receiver.
Warehouse Management System (WMS) Integration
The process of connecting the TMS with WMS to enable seamless data flow and create synergies between transportation and warehouse operations.
Analytics and Reporting
The functionality within a TMS that helps analyze transportation data to identify trends, generate reports, and make informed decisions.
Mode Selection
Determining the most efficient and cost-effective method of shipping goods; modes include air, rail, truck, and ship.
Cost Allocation
A feature in TMS that allocates transportation costs to the correct department, product, or business unit based on predefined rules.
Integration Capabilities
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.
Batch Shipping
The function of combining multiple orders into one shipping instruction to streamline processes and reduce administrative work.
Carbon Footprint Reporting
A feature of some TMS platforms that tracks and reports on the environmental impact of transportation activities to support sustainability efforts.
Cross-docking
A logistics procedure where products are unloaded from incoming vehicles and then immediately loaded onto outbound vehicles, with minimal or no storage time.
Advanced Shipment Notifications (ASN)
A document that provides detailed information about an incoming shipment to the party receiving the goods, often transmitted electronically.
Multi-modal Transportation
The use of more than one mode of transportation to move shipments from origin to destination; it can reduce costs and improve flexibility.
Rate Shopping
A tool in TMS that compares the rates of different carriers to find the best shipping rate for a given package or shipment.
Contract Management
Utilizing a TMS to manage transportation contracts, agreements, and associated documents, ensuring compliance and leveraging negotiated rates.
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