Transportation Management Systems in 2025

If you own a commodity business or are involved in such activities, you have heard of logistics transportation. But what does it consist of? Logisticians usually deal with transportation management solutions manually: searching for trucks, planes, and barges that can take goods in whole or in part. And it is much more difficult to work when there is no precise control over this area in the country. 

However, don’t worry if you find yourself in a similar situation. A special “pill” has long been invented that will solve all your problems (almost). Today, we will talk about individual transportation management systems and how they help solve logistics problems for B2B (business-to-business).

What exactly is a TMS transportation management system?

We are sure you have encountered such a problem as human error at work. Mistakes in numbers, incorrect reports, and fake presentations. And, most painfully for every entrepreneur, all this means a loss of potential profit. Moreover, this applies to any field. You have to admit, it’s quite annoying, isn’t it? 

Freight transport management systems software is a savior to most firms. Don’t mix it with CRM or ERP: TMS system operates on the logistics level, once the customer has made an order, but before the delivery.

In transport management, curious situations like this happen. A truck arrives to pick up goods from the warehouse, but it can only hold 60% of what the paperwork indicates should fit. Why does this happen? The manager or driver mixed up the dimensions, and instead of the stated 1.2 m length of the part, they marked only one meter.

That is, according to the documentation, 150 parts should fit, but in fact, not even a hundred fit. So, just 20 cm breaks the whole scheme of all other additional loads. 

This is a consequence of human work. No, this does not mean that logisticians, managers, and drivers have suddenly become public enemy number one. It is a simple fact that people make more mistakes than transport management systems. Let’s take a closer look at their work and functions.

TMS core: features that save money

Before reviewing the features of the TMS transportation management system, we want to demonstrate how bureaucracy, rather than digital marketing tools, can be beneficial. One illustrative case of administrative complexity in Germany involves the prolonged planning of an 11-kilometer section of the autobahn between Dreieck Lossetal and Helsa-Ost, near Kassel. 

The project began in 2006, but construction has not yet commenced. One reason is the requirement to conduct environmental assessments, including year-long monitoring of local populations of protected species such as bats and newts along the planned route.

To minimize the risk of legal disputes, the Ministry of Transport is currently reworking the plans to ensure full compliance with environmental and administrative regulations. A single legal challenge from advocacy groups has the potential to delay construction considerably. 

According to current official estimates, construction will not begin before 2031 and may be completed by 2036-2037. This implies a planning and implementation timeframe of approximately 30 years. This example illustrates how regulatory processes and legal safeguards can result in extended infrastructure development timelines in Germany.

TMS under the hood: how your logistics really work

As we have already seen, TMS transport management systems address numerous issues related to both sea and land transportation. But what is the point? — This is how your conservative manager, who is used to standard tables, might respond. “Is it really so popular that it is impossible to do without innovations?!”

In 2024, the global transportation management system market is projected to be worth $15.88 billion. It is expected to expand at a 17.5 percent rate between 2025 and 2030.

The developments driving the global TMS transport management system industry’s expansion include the growth of the retail and e-commerce sectors, technological advancements, the introduction of new solutions to the market, and the improvement of trade relationships among nations worldwide.

The TMS (transportation management system) is also required when manual accounting and Excel have outgrown their usefulness. Take, for example, a company that receives dozens or hundreds of transport requests per day, with complicated routes, a couple of warehouses, and dozens of carriers.

Without centralization, everything begins to slip through their fingers. If the cargo is lost or the documents are not delivered, a customer calls, and the operator does not know where the vehicle is. All this is normal mayhem prior to TMS implementation.

The point of the system is to provide logisticians with a tool that presents them with the entire picture: what, where, when, by whom, and under what conditions it is being transported.

With the TMS platform that may be developed by Intobi, you can make requests, choose carriers, compose routes, track performance, gather documents and invoices, do analytics, and inform all the participants of the transportation process within one window.TMS management minimizes the human error percentage, accelerates the order processing, and generates actual savings within the logistics.

The logistics is much easier with TMS functionality

An operator receives an order to transport cargo from Chicago to Portland. Previously, it involved opening a spreadsheet, contacting the carrier, manually entering the route, taking the route to the driver in person, and signing paper documents, all while hoping that everything would go through.

Everything is different with TMS transportation. The operator adds the request to the system, or it comes automatically through an API (application programming interface) or CRM (customer relationship management) connection. The system is filled with immediate entries concerning such parameters as weight, dimensions, the nature of the cargo, and the loading/ unloading points. 

The logistics specialist will then select a carrier from the list of contractors. Transport management platform: the history is dragged up; who shipped what when, at what rate, and with what lateness. It is not necessary to call and make a request; everything can be done in several clicks.

The request appears to the driver. It is on the mobile application or web browser. The driver confirms it. Thereafter, he/she is given the route and other documents.

The system automatically marks the statuses in transportation: 

• “departed”; 
• “arrived”; 
• “delivered”. 

Certain TMS logistics are connected to GPS or utilize the information provided by trackers. This enables logistics experts and customers to track the cargo’s position in real-time. People no longer have to make calls to inquire about the location of their goods; everyone can see it by looking at the system. 

Similar technological solutions are also used in consumer delivery services, such as food delivery apps. After delivery is complete, you have the option to automatically generate a report, scan and upload documents, issue an invoice, and save the route to your history. 

The customer also receives a notification, allowing them to provide feedback about the driver or carrier, which helps inform future contractor selections. The given process does not entail continual managerial control, and this is the primary advantage of TMS transportation.

Types of transportation management systems

There is no need to worry. There aren’t that many of these types, only 4:

1. On-Premise TMS is deployed on your IT infrastructure: servers are placed in your office, and data is under your control. You sometimes have complicated logistics, your own certification or regulations, and then a local solution is the only possibility.
2. Cloud-Based or SaaS This is the form of TMS that operates via a browser or app: the vendor takes care of the infrastructure, upgrades, and security. The system will automatically upgrade itself, and operations will continue as normal.
3. ERP with integrated TMS Modules The flexibility and integration capabilities are not the greatest, yet there is no manual effort to “glue” a dozen programs together.
4. SMB SaaS Solutions Core features — tracking, rates, carrier acceptance, CRM / WMS integration. Their benefit lies in the fact that they can be put into effect within a few days and become effective instantly.

However, we caution you not to be overly trusting: programs can also malfunction, and sometimes the hand or brain of a manager in the warehouse or in management will not help. Be vigilant, because the lights may go out, as they recently did across Europe, or your PC may simply be outdated and take a long time to load information. For whom, for what, and for what problems — everything is in the table below:

Still not quite clear? Let’s take a closer look. Scroll down to find out more.

Does your business need a TMS?

Once spreadsheets or disparate systems become inadequate to your growing business, it is time to explore TMS. What tells you that your business needs a revolution?

1. A great number of orders, when daily orders are 100-200 or more, and employees waste hours planning the routes manually.
2. The routing needs are complicated — stops on the way, different modes of transportation, and international deliveries. Manual coordination is subject to error.
3. Tracking and documentation problems Constant telephone calls with the question “where is my order?”, misplaced paperwork, or missed delivery times.
4. Carrier management issues Carrier management becomes cumbersome when dealing with many carriers and negotiating rates.

Recognize yourself? That’s why TMS is a must for reliable growth and operational control.

TMS implementing: before and after

“They [ed. note: manufacturers] don’t know, even if something is announced [ed. note: taxes], whether two days later it’s not changed again,” Tobias Meyer, DHL Group Chief Executive Officer, said. “You really see some fatigue of decision makers in manufacturing and also in the distribution sector.”

Those who bear in mind the early 2000s still phone the delivery service out of habit and frustration when the cargo is delayed. This is particularly relevant to the food and agricultural industries. Transportation management solutions are built on the speed with which current information is delivered from the warehouse to the client. But is everything that simple?

As a result, the number of operators and drivers might fall, raising logistics costs. In this situation, request processing, data flows regarding the hourly duration of the route, unexpected path restructuring, and general tips about the enterprise’s cargo ought to be transmitted to the servers and software. Automated control systems will benefit the sector by providing openness, simplicity, reporting, and tracking.

Choosing the right TMS: considerations and possibilities

Can TMS logistics work autonomously? On paper, anything is possible. Try sending a car on a new route with no navigation aids. Of course, the cargo will eventually reach the client; however, the time frame is undetermined. As a result, let us take an additional look at where and how logistics management should be incorporated, as well as what will depend on its quality in 2025.

Integration with other business systems

In a vacuum, transportation management refers to a collection of systems that track the product as it travels to the client. Is this actually true? To accomplish this, let’s examine in the table below the major components that every trucker is familiar with.

It’s difficult to conceive how many spaces had to be rented 100 years ago to hold all the bills. Their reconciliation may have been terrible. In the twenty-first century, the automation of business activities has consolidated data flows into a single system — CRM.

The WMS system, which uses RFID tags, sensors, or other location tracking technologies, offers you real-time information about stock as it moves into, around, and beyond the warehouse. The ERP system’s flexibility enables easy integration with a diverse range of software products via connectors or bespoke adapters, such as application programming interfaces (APIs). 

Other ERP integration solutions incorporate Enterprise Service Bus (ESB) and an Integration Platform as a Service (iPaaS). Transportation management can be merged entirely into the CRM, ERP system, or as a modular solution in the CRM that runs alongside the WMS database.

Another viable solution would be to pay for gas at the company’s expense. Therefore, you should be aware that each third company has a personal AI assistant. Besides additional perks, a tailored AI automates tedious jobs, manages workflows, and promotes interaction among employees.

The future of TMS

The industry of transportation management systems development suffers from substantial transformation, altering logistics and supply chain management. An imperative trend is the growing adoption of cloud-based technologies. 

According to GM Insights statistics, the market was valued at USD 12.4 billion in 2023 and is expected to rise at a 9.9% CAGR between 2024 and 2032. The acceleration of e-commerce has resulted in higher shipping volumes, demanding sophisticated transportation management systems for efficient logistics management.

Companies are migrating from on-premise systems to cloud TMS responses, which provide greater flexibility, scalability, and reduced IT costs. These cloud solutions allow businesses to streamline operations and provide remote access, resulting in better collaboration across teams and geographies. 

Geolocation devices and real-time monitoring are being used to facilitate management. Furthermore, huge trucks used for intercity transportation (such as rolled metal) are outfitted with tracking equipment on both the truck and the cargo.

The widespread deployment of AI has resulted in the maturation of TMS into an intelligent management system (IMS). Dedicated Short Range Communication (DSRC) is the “firstborn” that communicates using Wi-Fi at 5.9 GHz. DSRC does not currently support instant connection and request processing, which is required for corporate needs. 

CV2X is an updated technology that integrates cellular networks, including 5G, to supply an even wider ecosystem. However, it is still insufficient to serve an extensive array of consumers. This is where AI/VR comes in, TMS integration, such as autonomous CAD models, mobile SaaS servicing, Tesla’s “Fleet Learning”, and AI PriceOptimizer.

Stay on track with Intobi

Intobi is a development team that measures time in products and meets deadlines. Full support after and during the discharge will please you and relieve customers of their burdens. Unknown paths will now become routes on the map, complete with all necessary marks!

The ongoing development of CRM systems and their integration with other optional modules has culminated in the fact that even a company with 7 trucks now has its own software and transport management system. The peak load that may occur as a result of a strong marketing campaign can bring the servers down. This would result in delays and tiredness, which are already prevalent among staff and clients.

If you’re ready to discuss a tailored solution for your logistics or transport business, contact us — the team is ready to take your project from planning to production, without downtime or detours.

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