Transportation Management System
A transportation management system (TMS) is software for planning, booking, tracking, and paying for freight shipments.
Why it matters for ecommerce brands
A TMS pays off once freight is a large cost, because it helps you pick the best carrier for each load and catch billing errors. It compares LTL and truckload quotes, tenders loads, tracks them, and audits invoices against agreed rates. For example, a brand spending $1.2 million a year on freight that saves 4% through better carrier selection and invoice audits keeps $48,000, which you can weigh directly against the TMS fee. Brands that ship mostly parcels usually start with shipping software instead.
Common questions
- Does an ecommerce brand need a TMS?
- Brands shipping mainly small parcels often use shipping software instead. A TMS becomes useful when moving significant freight, such as LTL, full truckload, or wholesale shipments.
- What is the difference between a TMS and a WMS?
- A WMS runs work inside the warehouse, such as receiving, storage, picking, and packing. A TMS manages freight between locations, including carrier selection, booking, tracking, and freight payment.
- Is a TMS the same as shipping software?
- Not quite. Parcel shipping software rates and labels small packages across carriers like UPS, FedEx, and USPS, while a TMS handles freight such as LTL and truckload. Some platforms now do both.