Comprehensive Study on Transportation Performance Management Solutions Industry

Comprehensive Study on Transportation Performance Management Solutions Industry

A transportation management system (TMS) is a subset of supply chain management related to transportation processes and can be part of an ERP (Enterprise Resource Planning) system. A TMS usually "sits" between an ERP or legacy order processing and warehouse / sales module. A typical scenario includes both incoming (procurement) and outgoing (shipping) orders, which are evaluated by the TMS planning module and offer the user various suggested routing solutions.

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Some of the key players of Transportation Performance Management Solutions Industry:

Cognizant Technology Solutions Corporation, Tyler Technologies(Socrata Inc), Federal Highway Administration, Santa Fe MPO, One Network Enterprises, CargoSmart Ltd, Descartes Systems Group, OneLogistics

These solutions are evaluated for appropriateness by the user and passed on to the analysis module of the transport provider in order to select the best mode and the most cost-effective provider. As soon as the best provider has been selected, the solution usually generates an electronic load posting and track & trace in order to carry out the optimized shipment with the selected carrier and later to support the freight checking and payment (billing process). Links to ERP systems (after orders have turned into optimal shipments) and sometimes to WMS (Warehouse Management System) programs, which are also linked to ERP, are also common.

In addition, some software vendors were either acquired or merged with supply chain management consultancies and began offering shippers "mixed" managed and software services as an outsourced process. Primary Tier 1 TMS providers are still independent, carrier and 3PL neutral and ERP neutral. As ERP vendors improve their local transportation management offerings by adding TMS modules to their existing, deployed base, the advent of software-as-a-service or "SaaS" delivery has led to a surge in emerging TMS vendors.

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