Update: 04/01/2023


Continuing the series of articles on the main functions of the transportation management system, today we will find two more main functions of TMS, Execution, and Administration

Main functions of the transportation management system


A TMS also allows users to perform the main operations of freight management, including booking shipments with the carrier.

Real-time visibility into the movement of goods across the transportation network helps track shipments and share that information with customers and suppliers.

There are also communication mechanisms to contact the driver during transportation and GPS (Global Positioning System) features to measure time and distance.


Transportation and logistics management are complex endeavors that require critical paperwork for business-to-business (B2B) transactions, regulatory compliance, and audits.

Accordingly, a TMS must have sufficient administrative features to support financial reporting and documentation requirements.

Typical features include invoicing, billing, and tools to ensure accuracy by comparing carrier-published rates with invoice amounts, for example.

There may be an automated payment system to minimize invoice processing. TMS can also create a waybill, a type of receipt that a shipper or carrier can issue to specify items in the shipment and the terms of the contract.

Waybills are also used in customs and insurance. TMS must also process payments, a more complex process that requires recording certain shipping milestones and figures before payment can be made, such as proof of delivery, pickup, and transit time.

The data collected during resolution is the basis for TMS's performance management and optimization processes.

TMS users can search payment data for clues about customer needs and capacity usage as well as negotiate special prices for factors such as load speed and time of day.

Read more: Main Features Of The Transportation Management System


So you have gone through a series of articles on the main functions of transport management systems.

In summary, the transportation management system possesses four main functions: Planning, Freight Management, Execution, and Administration.

Depending on the needs and nature of each business, you can use this technology solution in the most appropriate way…

Admin Meksmart