Benefits and Drawbacks of Transport Management Software

Freight transportation management has always been a costly affair in the supply chain. However, with the increase in globalization and the rapid rise in the ecommerce industries, the need for efficient and reliable transportation management gave rise to the development of transport management software.

Since the shippers always look forward to optimizing the performance of their supply chain, they are always on the spree of finding a reliable transport management system. However, none of the people associated with the supply chain management system prefers to face the challenges of rising freight rates, lack of capacity in the truck, etc. 

To help buyers get the best TMS software, we have discussed the advantages and disadvantages of owning a transport management system. However, before you dive deep into the pros and cons of transport management software, it is essential to have a clear understanding of TMS. 

What is transport management software? 

A transport management system or TMS software is a platform prepared for the logistics and supply chain management industry that uses technology to propagate goods and services’ planning, execution, and optimization from one location to another. Further, the TMS software takes care of both the incoming and outgoing shipment and its documents. 

Also known as the transport management solution, the TMS software pays attention to the regular transport operations, trade compliance, and documentation, thereby ensuring that the products and services deliver on time. Besides, the TMS software can make business management and optimization easy in air, sea, or land transportation. 

Importance of transport management system 

The transportation management system plays a vital role in the supply chain industry. The transportation management system affects all parts of the process, from the planning and procurement of the logistics to the lifecycle management. 

The transport management system that offers broad visibility and more efficiency leads to better planning and execution. Therefore, the customers are ought to be satisfied. This, in turn, leads to more sales, thereby helping businesses to grow. Therefore, if you are looking for a provider of reliable TMS software in Canada, make sure to choose one that provides easily navigable TMS software. 

Benefits of transport management software 

Now that you are aware of the functionality and potential of TMS software in Canada, it is time to pay attention to the advantages of a transport management system. Check the list given below: 

  • Enhances customer service 

The TMS software uses analytics and reporting, allowing users to check the effect of choices within the system. Furthermore, the TMS system does not require any human intervention between the management of the whole process. Therefore, zero wastage of time and money. As a result, you can increase customer satisfaction by ensuring that the customer has received his product at the right time without any issue. 

  • Efficiency of warehouse 

The more you use the TMS software for the logistics management system, the more you save time on freight management. As a result, you can invest this saved time in other essential work and warehouse duties. Further, once the TMS software is integrated into your transportation system, zero errors are made while entering the data as it is generated automatically. 

  • New delivery capabilities 

When you have robust TMS software, the entire process of shipment is optimized. Therefore, it saves costs and increases the overall efficiency of logistics. In addition, the TMS software helps create the bills of lading at ease. With individual logins, you can have multiple locations integrated into one. 

  • Reduction in inventory 

The TMS software allows you to prepare a better plan for inventory management. Furthermore, since freight shipping is about to increase immensely in the future, you can install the TMS software into your logistics management system to get accurate inventory forecasts. 

  • Better cash flow 

When you employ a better transportation accounting system, the rest of the things automatically fall into place. For example, the TMS software allows you to carry out the freight payment, auditing, and consolidation services in one go. 

Disadvantages of transport management software 

Along with the advantages of the transport management system, there are some drawbacks. Here are the cons of the transport management system as listed below: 

  • Integration 

When you input the TMS software into your logistics system, you must train your people to handle it. Unfortunately, this can sometimes take you to a position where you are left with no choice but to change the company cultures and values. 

  • Cost 

In the traditional transport management system, back-end server hardware was required. Also, one had to hire IT, programmers. As a result, all these challenges made it difficult for the logistics work to be carried out effortlessly. Also, the more processes it involved, the more time was required. Therefore, even after developing TMS software, companies need to assess their operating model before hiring TMS software providers. 


Therefore, when looking for TMS software, make sure you research them properly. Implementing an efficient TMS software will upskill the logistics process and make things work faster.