Transportation Management System

Posted in Operations and Supply Chain Terms, Total Reads: 1206

Definition: Transportation Management System

In the Indian context the transportation is involved in all the stages of a supply chain and logistics. It starts from the procurement stage to delivery of material. The warehousing and the final distribution all involve transportation. It comprises of 35-40 % of the total operating cost in logistics. It is difficult to support multimodal transportation because of excessive fragmentation and lack of coordination in this sector.  The components of a TMS are

  • Planning and sub-optimization
  • Execution and Monitoring

Planning and optimization

Load Consolidation

Load Consolidation

For   example a company located in Boston has to distribute in North East then  it will maintain the  Truck to its full capacity and using fewer number of truck  will transfer it to the warehouse where it will be distributed using below the truck line capacity

Product Mixing Instead of using three different sources for complete shipment the three products are converged at a single location which mixes all of them and sub-distributes using a single source.


Hence, this concludes the definition of Transportation Management System along with its overview.


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