In the transportation and logistics business, TMS software for carriers is a vital solution that can streamline daily business operations, improve efficiency, and reduce costs for carriers of all sizes. This article takes a detailed look at the benefits, features, and importance of choosing the right TMS software for carriers to ensure smooth and profitable operations.
What is TMS Software for Carriers?
TMS software for carriers is a digital solution designed to manage, automate, and optimize a company’s daily transportation business processes. It streamlines various aspects of logistics, including route planning, load tracking, load optimization, and expense management. Carriers benefit from real-time analytics, automation, and improved collaboration, making TMS software an essential tool for modern logistics.
For carriers, the right trucking management software globally delivers:
- efficient fleet management
- reduced operating costs
- regulatory compliance
- improved customer satisfaction
Classification of TMS Software for Carriers
Classification of TMS software for carriers can be done based on various parameters. However, one generally accepted parameter for the classification of TMS is the carrier’s size. Depending on the size of the carrier, TMS must have the appropriate features. So, conditionally, TMS for carriers can be divided into:
- TMS for owner operators
- TMS for small carriers
- TMS for medium and large carriers
- universal TMS (transportation management systems that can cover the needs of all carriers regardless of their size)
Key Features of TMS Software for Carriers
There is probably only one feature that should be implemented in TMS for carriers of all sizes – load management. Load management is the main feature of any TMS, since load transportation is the basis of any carrier’s business, on which it makes money.
Any carrier must keep track of loads for transportation. TMS should allow the carrier to do this in a convenient form. Allow entering all the necessary information about the load, changing the load’s status depending on the transportation stage, storing documents related to this load in one place, searching for the necessary load based on the selected filters, etc.
Key Features of TMS Software for Small Carriers
Small carriers have much higher requirements for TMS software features than owner operators. This is because a trucking business with up to 7 trucks and drivers is much more complex than a business with one truck and one driver, who is the owner himself.
Fleet Management in TMS for Small Carriers
Fleet management becomes a complex process for small carriers when trucks reach 5-7 units. The TMS must contain a module that will automate fleet management. The TMS should allow you to enter all the necessary information about a truck or trailer, automatically track the license plate expiration date, inspection expiration date, and insurance expiration date, and signal this to the TMS operator if such dates are approaching.
Driver Management in TMS for Small Carriers
After hiring 5-7 drivers from a small carrier, managing them manually takes time. Maintaining driver record data up-to-date, monitoring so as not to expire the CDL and medical card expiration dates. A good TMS should provide all this for small carriers.
Expense Management for Small Carriers
With 5-7 trucks and drivers on the road, a carrier has to account for many expenses associated with the business: hundreds of receipts for purchased fuel, credit for trucks and trailers, bills for maintenance, insurance, parking, fines, and other expenses. All these expenses must be structured, correctly assigned to the appropriate driver or truck, reflect the exact date, and be in one place. In addition, it is necessary to find certain expenses quickly using specific parameters. The best TMS for small carriers must be able to do this.
Features of TMS System for carriers
The peculiarity of medium and large carriers is that 1-2 people cannot manage the size of such a business. As a rule, the organizational structure of such carrier companies consists of several departments responsible for a specific role, such as the dispatch department, the fleet department, the safety department, etc. What requirements do carriers impose on TMS in connection with these features? It must be said that all TMS modules for small carriers must also have TMS for large carriers.
Dispatch Feature in a TMS System for Carriers
A TMS system for carriers must contain the dispatch feature. Dispatching is the most critical process that directly affects the company’s profit. If this process is well established, the company will have no truck downtime, fewer deadhead miles, and more loads with a higher RPM. The dispatch feature should display all company trucks, their transportation statuses, and all related information about the driver, truck, trailer, and load in real time. In this way, the dispatcher will see which trucks need loading right now, which trucks will soon arrive for unloading, and which trucks have started loading and have not yet left for the road. All this information will help the dispatcher find the optimal load for further transportation in time.
Customer Management Feature in TMS System for Carriers
A carrier with more than seven trucks makes many shipments for different customers. In this case, customer data management becomes significant. The TMS system for carriers, which has a customer management module, allows you to speed up the process of processing documents for the transportation of loads, quickly issue a direct invoice, view the history of interaction with this customer, and even make notes for this customer and set your rating for him, which will help in the future to choose the right customer.
Invoice Management Feature in Carrier TMS Software
The invoice management feature in carrier TMS software is essential because it initiates payment for the service performed. The invoice management module of carrier TMS software should be able to generate an invoice with correct company and customer data, load data, and correct numbers. Carrier TMS software should create an invoice that contains all the necessary information for making a payment. The generated invoice should be sent to the customer’s email or factoring company.
Reports in Carrier TMS Software
Carrier TMS software should have a wide range of reports that allow owners and managers to assess the health of various company aspects.
The Revenue / Expense Report in carrier TMS software is an important tool that helps the company see where it earns the most income and where it spends the most expenses. This will allow the company to optimize its operations, increase revenue, and reduce costs.
The Driver Workload Report in carrier TMS software will help the company identify the best drivers who can increase profit.
Fuel Consumption Report in carrier TMS software will help the company to optimize fuel costs.
