Introduction

In today’s globalized economy, the e-commerce landscape is more competitive than ever. With customers expecting fast and reliable deliveries, businesses need to find ways to optimize their logistics and transportation processes to stay ahead of the curve. One way to do that is by using transportation management software (TMS). A TMS system streamlines and automates the entire shipping process, allowing e-commerce businesses to efficiently manage their third-party logistics providers (3PLs). But, how is it beneficial, and what features should you be looking for in a TMS? In this article, we’ll briefly outline the importance of TMS for e-commerce businesses partnered with 3PLs and discuss the best TMS options in 2021.

Benefits of Using Transportation Management Software

Implementing a TMS system into your e-commerce operations offers numerous advantages. Here are a few of the key benefits you can expect:

1. Enhanced Supply Chain Visibility: TMS allows e-commerce businesses to track shipments in real-time, from order placement through delivery to the end customer. This increased visibility helps you make better, data-driven decisions and reduce the risks associated with supply chain disruptions.
2. Cost Savings: Shipping and logistics costs can be a significant portion of your operational expenses. By utilizing TMS, you can find the most cost-effective shipping rates, streamline your warehouse processes, reduce order errors, and minimize the need for manual intervention—all of which can lead to cost savings.
3. Improved Customer Experience: Timely deliveries and accurate shipment tracking are crucial for ensuring a positive customer experience. A TMS system can help you achieve this by providing real-time updates on shipment progress, anticipated delivery times, and any potential delivery issues.

4. Scalability & Flexibility: As your e-commerce business grows, the TMS system allows you to easily manage increased shipping volumes and diverse carrier networks, ensuring that your logistics remain efficient and responsive to changing market conditions.

Features to Look for in a TMS

When evaluating different TMS options, it’s essential to identify the features that meet your unique e-commerce needs. Some key features to consider include:

1. Integration Capabilities: Your TMS should easily integrate with your existing e-commerce platform, your 3PL partners, and any other relevant third-party systems.
2. Real-time Tracking: Look for TMS options that provide real-time shipment tracking to ensure visibility at every stage of the transportation process.
3. Multi-Carrier Support: Opt for a TMS solution that offers multiple carrier options to give you the flexibility and cost efficiency you need.

4. Reporting & Analytics: Comprehensive reporting and analytics features can help you make informed decisions about your shipping operations, identify trends, and optimize costs.
5. User-friendly Interface: A TMS system should be easy to use and navigate, allowing your team to manage your logistics quickly and efficiently.

In the following sections, we’ll dive deeper into the top 8 transportation management software solutions of 2021, discuss their features and pricing, and provide some use cases on how TMS can benefit e-commerce businesses. But first, let’s take a closer look at the benefits of TMS beyond shipping and how it can improve efficiency and reduce costs in this article here.

II. Top 8 Transportation Management Software of 2021

In this section, we’ll take a closer look at the 8 best transportation management software options of 2021. We’ll provide an overview of each software, along with important details such as pricing, features, and integrations. Additionally, we’ll discuss the pros and cons of each option, giving you a comprehensive understanding of each TMS solution.

1. FreightPOP

Overview

FreightPOP is an all-in-one TMS platform designed to streamline your transportation, logistics, and supply chain processes. It enables users to quote, book, track, and analyze shipments through its user-friendly interface.

Pricing and Features

FreightPOP offers various pricing plans based on the number of shipments per month. Key features of FreightPOP include:

• Customizable dashboard
• Parcel, LTL, TL, intl and freight options
• Real-time tracking and alerts
• Integrations with numerous carriers and e-commerce platforms

Pros and Cons

Pros:

• Intuitive interface and easy to use
• Highly customizable to suit your business needs
• Excellent customer support

Cons:

• Limited integrations with CRM systems
• Can be slow at times

2. 3PL Central

Overview

3PL Central is a cloud-based TMS solution designed specifically for 3PLs and warehouses. It helps businesses manage their inventory, streamline their workflows, and track shipments.

Pricing and Features

Pricing for 3PL Central is quote-based. Some of its key features include:

• Warehouse inventory management
• Billing and invoicing capabilities
• Integration with popular e-commerce platforms
• Customizable reports

Pros and Cons

Pros:

• Targeted functionality for 3PLs and warehouses
• Allows easy communication between parties
• Frequent updates and new features

Cons:

• Steeper learning curve compared to other solutions
• Limited integrations with other software

3. Oracle Transportation Management

Overview

Oracle Transportation Management (OTM) is a global TMS solution that helps enterprises manage their transportation networks and improve efficiency. It integrates with Oracle’s broader supply chain management suite for a holistic logistics solution.

Pricing and Features

As part of Oracle’s suite of solutions, pricing is determined on a case-by-case basis. Key features of OTM include:

• Multimodal support
• Fleet management
• Integration with Oracle Supply Chain Management and ERP systems
• Advanced analytics

Pros and Cons

Pros:

• Comprehensive transportation management capabilities
• Robust analytics and reporting
• Strong global presence

Cons:

• Higher cost compared to other solutions
• Steeper learning curve

4. AscendTMS

Overview

AscendTMS is a cloud-based transportation management software that provides a range of tools for carriers, brokers, and shippers to manage their operations effectively.

Pricing and Features

AscendTMS offers subscription-based pricing with various tiers. Its features include:

• Full dispatch control
• Integrated load tracking
• Carrier management
• ELD integrations

Pros and Cons

Pros:

• User-friendly interface
• Suitable for various business types and sizes
• Excellent support team

Cons:

• Some features may be more geared towards carriers than shippers
• Occasional system slowdowns

5. ShipHawk

Overview

ShipHawk is an API-first transportation management system that provides shipping automation, data-driven insights, and efficient carrier management.

Pricing and Features

Pricing is quote-based for ShipHawk. Some of its key features include:

• Shipping and logistics APIs
• Real-time rating and routing
• Automated dispatching
• Detailed reporting and analytics

Pros and Cons

Pros:

• Highly flexible and customizable through APIs
• Modern interface and user experience
• Strong focus on automation

Cons:

• Limited out-of-the-box functionality compared to other solutions

6. Kuebix TMS

Overview

Kuebix TMS is a scalable, cloud-based transportation management system designed for businesses of all sizes.

Pricing and Features

Kuebix offers a free version, as well as subscription options for its platform. Key features include:

• Carrier rate management
• Intelligent routing and scheduling
• Real-time visibility and tracking
• Integrations with ERP and e-commerce platforms

Pros and Cons

Pros:

• Flexible pricing options
• Easy to use and implement
• Strong support for optimization and analytics

Cons:

• Limited functionality in the free version
• Customization can be complex

7. Blue Yonder TMS

Overview

Blue Yonder TMS (formerly JDA TMS) is a comprehensive transportation management platform that offers visibility into your supply chain and creates efficient, cost-effective transportation plans.

Pricing and Features

Pricing for Blue Yonder TMS is quote-based. Some of its key features include:

• End-to-end shipment visibility
• Carrier selection and load planning
• Integration with warehouse management systems
• Advanced analytics and reporting

Pros and Cons

Pros:

• Strong support for complex transportation networks
• Integrates well with other Blue Yonder solutions
• Scalable for large enterprises

Cons:

• Expensive compared to other solutions
• Steeper learning curve

8. Cerasis Rater

Overview

Cerasis Rater is a TMS platform designed for small and medium-sized businesses looking to streamline their shipping processes.

Pricing and Features

Cerasis offers quote-based pricing for its solution. Key features include:

• Web-based interface
• Automated carrier selection
• Real-time shipment tracking
• Freight invoice auditing

Pros and Cons

Pros:

• Simple user experience
• Suitable for small to medium-sized businesses
• Excellent customer service

Cons:

• Lacks some advanced features found in larger platforms
• Limited integration options

III. Benefits of Transportation Management Software

In today’s fast-paced e-commerce landscape, using a Transportation Management Software (TMS) can greatly optimize the logistics and transportation processes for businesses. TMS offers numerous benefits beyond just managing shipments, such as increasing efficiency, reducing costs, and improving customer satisfaction. In this section, we will delve into the key advantages of implementing a TMS in your organization.

3.1 Improved Operational Efficiency

One of the primary benefits of using a TMS is the increased efficiency it brings to your transportation and logistics operations. TMS streamlines and automates key processes such as carrier selection, route planning, and shipment tracking. This not only reduces the time and effort required by your team but also minimizes errors and delays due to manual processes.

3.2 Cost Reduction

By optimizing various aspects of your transportation processes, TMS helps you cut down on costs significantly. Key cost-saving features of TMS include:

1. Optimizing Carrier Selection: TMS can gather data from multiple carriers and present the best options in terms of service, negotiated rates, and transit times. This allows you to make more informed carrier choices and capitalize on cost-effective options.
2. Route Optimization: TMS provides you with tools to optimize your routes, reduce empty miles, and minimize fuel expenses.
3. Freight Audit and Payment Automation: TMS can automatically audit freight invoices, identify discrepancies, and resolve them before payment is processed.

3.3 Enhanced Customer Experience

TMS contributes to a better customer experience by ensuring timely deliveries, providing accurate shipment information, and addressing any potential issues as they arise. The ability to track shipments in real-time keeps customers informed, reduces complaints, and helps build stronger relationships with your clients. Moreover, through timely alerts and notifications, TMS keeps your team informed of any potential delays, allowing them to troubleshoot proactively and communicate any changes to the customer.

3.4 Data Analytics and Reporting

A robust TMS comes equipped with data analytics and reporting capabilities that help you make more informed decisions. Through these insights, you can identify inefficiencies, recognize cost-saving opportunities, and make adjustments to improve your transportation processes. This allows you to continually optimize your operations, further enhancing your bottom line.

3.5 Scalability and Adaptability

As your e-commerce business grows, TMS can scale with it, enabling you to manage increasing shipment volumes and more complex distribution networks. Additionally, a good TMS is designed to adapt to your evolving business needs and integrate seamlessly with other software such as ERPs, WMS, or order management systems used in your organization.

3.6 Environmental Benefits

Implementing a TMS helps you reduce your organization’s environmental impact. Features such as route optimization and strategic carrier selection enable you to minimize fuel consumption, reduce emissions, and ultimately lessen the overall carbon footprint of your supply chain.

3.7 Use Cases Illustrating TMS Benefits

Let’s consider a few real-world examples that showcase how a TMS can greatly benefit e-commerce businesses:

1. Minimize Shipping Delays: An online fashion retailer implementing a TMS successfully minimized shipping delays during high-demand periods such as holiday seasons, leading to improved customer satisfaction and reduced order cancellations.
2. Freight Cost Reduction: A small e-commerce business utilizing TMS identified and corrected charge inaccuracies on freight invoices, leading to significant cost savings.
3. Optimized Last Mile Delivery: A large e-commerce company implemented a TMS to optimize their last-mile delivery operations, resulting in fewer delayed shipments, reduced costs, and enhanced customer satisfaction.

By implementing a TMS, e-commerce businesses of all sizes can reap numerous benefits, ranging from cost savings to a better overall customer experience. With the advancements in the software and the rapid growth of online commerce, the importance of adopting a robust TMS cannot be overstated. To ensure that you maximize these benefits, it is critical to select a TMS that best aligns with your specific business needs – which we will discuss in the next section.

IV. Factors to Consider When Choosing a Transportation Management Software

A. Define Your Needs and Objectives

Before diving into the sea of available TMS options, it’s crucial to identify your specific business needs and objectives. Consider the size of your operation, the number of orders you process, the volume of shipments, and the extent to which your business relies on various modes of transportation, such as trucks, trains, or planes.

B. Ease of Integration

A TMS must seamlessly integrate into your existing tech stack, including e-commerce platforms, ERP systems, and warehouse management systems (WMS). Ensuring compatibility will help you avoid any major disruptions or downtime when implementing the TMS.

C. Scalability

As your e-commerce business grows, your TMS should be able to scale with you. Be sure that any TMS you’re considering can handle the expected growth of your operations in terms of order volume, geographic scope, and transportation modes. The software should be able to adapt and accommodate new markets and technologies as needed.

D. Pricing and Budget

No matter how feature-rich a solution may be, it needs to fit within your budget. As you evaluate pricing, consider not only initial costs but also potential long-term expenses such as maintenance, support, and subscription fees for cloud-based services. Keep in mind that sometimes, investing in more advanced systems might save money in the long run by increasing efficiency and reducing errors.

E. User Experience and Onboarding

When implementing a new TMS, the ease of use and training required for your team are important factors to consider. Look for systems with intuitive user interfaces and robust support documentation. Additionally, vendor-provided onboarding and training resources can be invaluable for getting your team up to speed quickly.

F. Customer Support and Maintenance

Your chosen TMS should come with responsive customer support and regular software updates to ensure optimal performance. Inquire about the vendor’s customer support options, such as phone, email or live chat, and be sure to read online reviews to gauge customer satisfaction with the level of support provided. You should also ask about the frequency of software updates and the procedure for implementing them.

G. Key Features and Customization

Different businesses may prioritize different features when it comes to a TMS. Some of the most common features include order and shipment tracking, inventory management, route optimization, carrier selection, and reporting capabilities. Consider each feature’s importance to your operations and identify any unique requirements that your business may have. Customization options and the ability to tailor a system to your specific demands can be a valuable asset.

H. Security and Compliance

Last but not least, a TMS should adhere to security and compliance requirements that protect sensitive data, such as customer information, order details, and shipping manifest data. Investigate the security certifications held by the provider and assess their reputation for data security.

I. Vendor Reputation and History

You’ll also want to consider the TMS provider’s reputation and history. A well-established provider with a track record of success and satisfied customers is more likely to offer a reliable, high-quality product. Take some time to research the provider’s reputation online and ask for references if possible.

J. Evaluate and Test

Finally, after researching and comparing options, take advantage of free trials or demo periods to evaluate how well the TMS performs in real-world scenarios. This hands-on experience will enable you to make an informed decision before fully committing to a specific system.

By carefully considering each of these factors, you can more effectively choose a transportation management software that best aligns with your e-commerce business’s unique requirements and objectives. Remember to weigh the pros and cons of each option and consult with your team to ensure a smooth transition to your new TMS.

Key Factors to Consider When Choosing a Transportation Management Software

When selecting the best transportation management software for your e-commerce business, it is important to take into account a variety of factors that will help you make an informed decision. Here are some key aspects to consider:

1. Business Size and Needs

Your business size and unique needs should play a significant role in determining which TMS is the right fit for you. Smaller businesses may require a more straightforward, user-friendly solution, while larger enterprises might need a more comprehensive and customizable TMS to handle their complex logistics operations. Determine which features are essential to your business and search for a TMS platform that caters to those requirements.

2. Scalability and Flexibility

As your business grows and expands its operations, your TMS should be able to adapt and grow with it. Look for a TMS that offers the flexibility to add new functionalities and features as needed. This will ensure that your investment remains beneficial in the long run and can adjust to accommodate your business’s evolving demands.

3. Ease of Integration

A good TMS should seamlessly integrate with your existing systems, such as order and inventory management software, accounting systems, and e-commerce platforms. Before committing to a TMS, ensure that it supports integration with the other tools your business relies on. This will help streamline your processes and ensure that all relevant data is accessible across platforms. For instance, innovative solutions such as Innovative Distribution Logistics Solutions can be seamlessly integrated with your TMS, providing a well-rounded logistics management solution.

4. Cost

E-commerce businesses should ensure that their chosen TMS fits within their budget while still offering the necessary features. When comparing TMS options, consider not only the initial cost but also any ongoing maintenance or subscription fees. Make sure to also account for any additional fees, such as implementation, training, or support costs, which might affect the total cost of ownership.

5. Usability and User Experience

Smooth user experience is essential for any software, including TMS. Look for platforms that offer an intuitive, user-friendly interface, making it easy for your team to adapt quickly and efficiently. Prioritize systems that provide clear and well-organized information displays, allowing your team to make informed decisions and manage logistics effectively.

6. Customer Support

Having access to reliable and responsive customer support is essential when implementing new software. Ensure that the TMS provider you choose offers quality customer support services, including assistance with implementation, training, and ongoing support. This will help you maximize the return on your TMS investment and enable your team to get the most out of the software.

7. Reporting and Analytics

Data analysis and reporting capabilities are crucial to understanding and improving your logistics operations. Robust TMS solutions should offer customizable, detailed reports and analytics that provide insights into key performance indicators (KPIs) related to your logistics and transportation. This will allow you to monitor your progress, identify areas for improvement, and optimize your logistics processes.

8. Security and Compliance

Lastly, it’s vital to consider how your chosen TMS ensures the security of your data and meets industry compliance requirements. Research the security measures each TMS provides, such as encryption and data backup capabilities. Ensure the provider adheres to industry regulations to avoid potential fines or penalties and safeguard your business’s reputation.

By carefully considering these critical factors, e-commerce businesses can select the right transportation management software to efficiently manage their logistics processes, reduce costs, and improve overall operations.

Your Next Steps on the Road to Optimized Logistics

The importance of transportation management software for e-commerce businesses using 3PLs cannot be overstated. As discussed earlier, TMS offers numerous benefits, such as increased efficiency, reduced costs, and improved supply chain visibility. With the selection of the perfect TMS solution tailored to your business needs, you can streamline your logistics operations and set your business on the path to continued success and growth.

If you’re still unsure where to begin, a great starting point is to dive deeper into the features and benefits of a comprehensive TMS solution, like in our Ultimate Guide to Order Fulfillment. By exploring different TMS options and keeping the above key factors in mind, you can make an informed decision and invest in the right transportation management software for your e-commerce business.

FAQs

1. 1. What is the role of a Transportation Management Software (TMS) in e-commerce?

A TMS is essential for e-commerce businesses using third-party logistics providers (3PLs) as it helps streamline the entire logistics process, from shipment preparation and carrier selection to route optimization and tracking. It enables businesses to save time, reduce costs, and improve overall efficiency while managing their shipments.

1. 1. What are some key benefits of using TMS for an e-commerce business?

Some key benefits include effective carrier selection, route optimization, real-time visibility and tracking of shipments, reduced paperwork and administrative tasks, data analysis and reporting, and improved customer service levels. Additionally, TMS can help minimize transportation costs and enhance overall supply chain efficiency.

1. 1. What are the must-have features of a TMS for e-commerce businesses?

Important TMS features e-commerce businesses should look for include integration with existing systems/platforms, real-time tracking capabilities, automated carrier selection, route optimization, customizable reporting and analytics, scalability, and an easy-to-use user interface.

1. 1. What factors should I consider when selecting a TMS for my e-commerce business?

When selecting a TMS, consider factors such as price, scalability, ease of integration with your existing systems and processes, user-friendliness, available support and training resources, the overall flexibility of the solution, and any specific features your unique e-commerce business may require.

1. 1. How do I know which Transportation Management Software is right for my business?

Determining the best TMS for your business greatly depends on your specific needs and preferences. By thoroughly researching and comparing the features, pricing, and integrations of the top TMS options, you can make an informed decision about which software best meets your e-commerce business’s requirements.

1. 1. Can TMS help improve my e-commerce business’s customer service levels?

Yes, TMS can significantly improve your customer service levels by offering real-time shipment tracking and visibility features, ensuring timely deliveries, and reducing the chances of errors in the shipping process. This leads to increased customer satisfaction and a smoother overall shopping experience.

1. 1. Are there any challenges with implementing TMS in my e-commerce business?

While implementing TMS in your e-commerce business can provide numerous benefits, some challenges include initial investment costs, integration with existing systems, adaptation to changing business needs, finding the right TMS vendor, and training employees to use the software effectively. However, the long-term benefits typically outweigh these challenges.

1. 1. How can I learn more about the best Transportation Management Software options?

Exploring industry reviews, forums, and blogs, and attending webinars or events is a good start. Also, reach out to software vendors for demonstrations, discuss your specific needs, and obtain referrals from other e-commerce businesses that have successfully implemented TMS solutions.