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TMS is the abbreviation for Transport Management System.
A TMS, Transport Management System, is a software solution used to plan, manage, and optimize the transportation of goods and materials and to monitor their physical movements.

Typically, a TMS will be used to receive or create a transport request, secure a rate for the transport, book it with the selected logistics service provider, track the shipment from its pick-up up to its delivery, manage and create transport and transport-related documents and possibly handle the transport invoices and their payment.

A TMS may be a direct part of the ERP main system but will often be a standalone solution with data interactions between itself and the main ERP. If it is not integrated with the WMS – Warehouse Management System, it will be closely tied to it.

A simplified process of a TMS, a Transport Management System, workflow. The diagram shows that a Transport Management System manages the steps: Transport Request, Transport provider selection, Transport supervision, Tracking and Invoice auditing. All these steps are handled inside a TMS, a Transport Management System.
A simplified process of a TMS workflow – extracted from our course on Supply Chain Systems.

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