TMS is a software tool for asset-based, asset light, non-asset, private fleet or for hire, transportation services, provider, or transportation intermediary, LTL, intermodal, freight forwarder, truck load, brokers and more. All of these types of companies share some needs for connectivity and information exchange with customers, carriers, drivers, load boards, regulatory agencies, border crossings, financial and other business services. The user can choose from the various modules available that best fits their needs and budget. So, you can build your system over time if money is a concern. A TMS usually sits between an Enterprise Resource Program (ERP) or legacy order processing and warehouse/distribution module.

TMS is designed to integrate with procurement and shipping software in order to evaluate both inbound and outbound orders and suggest multiple transportation solutions to the user before selecting the best method and the most affordable providers.

TMS serves as the logistics management hub in a collaborative network of shipper4s, carriers and customers. Common TMS modules include route planning and optimization, load optimization, execution, freight audits and payment, yard management, advanced shipping order distribution and carrier management.

TMS systems can be proprietary, where the customer has an IT department or you can choose either     in perpetuity or subscription licensing. In perpetuity licenses are priced by the size of the organization or the number of vehicles used in the business.