How Software and Hardware Innovations are Reshaping Transportation Management

Advances in technology have benefited transportation management and processes in many ways. Technology breakthroughs have redefined the way products are transported, making the entire process more connected than ever before.

To meet the pace of the changing marketplace, the logistics industry has turned to new information technology to better manage or streamline transportation processes. Smart transportation technology has evolved over the years pushing aside manual processes and giving way to transportation software that has made life easier for everyone, from transport drivers to fleet managers to back-office personnel.

Technologies such as predictive analytics, video intelligence, cloud-based transportation management software and more are revolutionizing the transportation or logistics industry. These technologies assist in shipment planning as well as fleet management that helps minimize expenses, enhance productivity, increase efficiency, improve employee satisfaction and retention rate, and boost business. The right kind of transportation management system enables all of the above-mentioned benefits.

The increase in adoption of smart connected devices by the transportation industry is propelling the growth of the TMS market. The TMS market worldwide that was valued at $71 bn in 2019, is expected to reach approximately $172.5 bn by the year 2025 at a CAGR of 16%.

What is a transportation management system (TMS)?

TMS is basically a cloud-based software that connects various process together, facilitating meaningful interaction across the supply chain such as warehouse departments, order management system and fleet or carrier owners. Advanced TMS also integrates customer relationship management platforms within the software. The best TMS helps streamline or optimize transportation operations in various ways. Let us look at how these powerful tools help users stay informed, connected, and efficient, generating tangible return on investment for business growth.

Improved functioning through load optimization and route planning

Using the right TMS helps in getting valuable recommendations of how to reduce shipping costs and find carriers that can deliver the products faster. Using a certain algorithm and based on the size, location and other specific delivery details, TMS suggests feasible carrier options and makes it easier to choose the right way of shipping products cost-efficiently. Similarly, based on the details provided, TMS can plan out a delivery route that helps expedite delivery time and improve performance within a reasonable shipping cost.

Improved visibility through reporting & data analytics

TMS does not only help streamline operations but also helps in providing greater visibility on the various functions involved in transportation. Using TMS it becomes easier to generate reports on every aspect of the supply chain process, facilitating fleet managers to plan ahead and avoid crisis. Relentless real-time shipment tracking enables proper distribution planning and increases delivery reliability. It also helps in minimizing the need to carry less inventory leading to significant cost savings.

Improved communication through end-to-end transportation management

End-to-end transportation management through TMS does not just address the inefficiencies within the supply chain operation cycle but also helps enhance communication between all the parties involved. In case there are multiple carriers involved in a particular delivery, communication is easier and effective through TMS, so that there are no glitches during the process. All this leads to happy employees and delighted customers. Moreover, it improves the business value with an opportunity for repeat business and volume sales.

In conclusion, logistics providers can no longer ignore the need to adopt practices that positively impact customer experience. Such practices will not only benefit the entire supply chain, but also open new avenues and opportunities for growth.

Read More:Transportation Cost-Cutting Strategies to Maximize Supply Chain Profits


Modern or smart TMS these days are mostly cloud-based and hence provide the benefit of easy accessibility from anywhere anytime. To stay competitive and improve the efficiency of fleet management, it is always prudent to stay in touch with the latest technologies that assist in streamlining the business operations. If you still haven’t thought of upgrading, now is the time to think of empowering your business.

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