What is a TMS system? | Boxboxbox
What is a TMS system?
TMS stands for Transport Management System.
In Danish, it is typically referred to as a transport management system or transport administration system.
A TMS system helps transport companies to plan, manage and track their transport assignments from start to finish.
For smaller hauliers, a TMS system is primarily about providing an overview.
Which trips need to be carried out?
Who should drive them?
Which vehicle should be used?
How much should the customer pay?
And are the trips ready for invoicing?
What is a TMS system used for?
A TMS system is used to collate the information relating to day-to-day transport operations.
This may include:
Customers.
Transport assignments.
Collection addresses.
Delivery addresses.
Dates and times.
Drivers.
Vehicles.
Prices.
Waybills.
Recurring trips.
Invoicing.
Instead of having information scattered across your phone, email, calendar, spreadsheets and paper, it can all be organised around each individual transport order.
How does a TMS system work?
A transport job typically begins when a customer books a trip.
The trip is created in the system with the necessary details.
It can then be planned.
A driver is selected.
A vehicle is selected.
The driver receives details of the trip.
Once the trip has been completed, the relevant details are recorded, and the trip can be prepared for invoicing.
In this way, the information follows the job throughout the entire process.
Is TMS only for large haulage companies?
No.
TMS systems are often associated with large logistics companies, but smaller haulage firms also need planning and an overview.
The difference often lies in the level of complexity.
A large company may require advanced integrations, stock management, international transport and comprehensive reporting.
A smaller haulier typically needs something simpler.
It may be sufficient to be able to:
Create trips.
Plan the day’s trips.
Manage drivers.
Manage vehicles.
Handle recurring trips.
Compile documentation.
Invoice completed trips.
A good system must be suited to the size of the business.
What is the difference between a TMS and a haulage contractor system?
There isn’t necessarily a clear distinction.
A haulage contractor system can be regarded as a type of TMS system.
The term TMS is used broadly to refer to transport management software.
The term ‘haulier system’ is often used more specifically to refer to software for companies that carry out transport themselves using their own vehicles and drivers.
For a small Danish transport company, the terms will often cover many of the same functions.
TMS and transport planning
Transport planning is a central part of a TMS system.
The system should make it easier to view all trips at a glance.
If a new job comes in, it must be possible to slot it in alongside the rest of the day’s deliveries.
At the same time, it must be possible to see which drivers and vehicles are already booked.
A comprehensive dispatch overview can therefore be an important part of the system.
TMS and drivers
Once a trip has been planned, the driver must have the necessary information.
This may include, for example:
Address.
Time.
Customer.
Contact details.
Comments.
Type of transport.
Sending this information directly from the system reduces the need for separate text messages, emails and phone calls.
TMS and vehicles
Not all vehicles can necessarily be used for every job.
A company may have different types of vehicles.
These might include, for example, vans, refrigerated lorries, forklift trucks or other specialised vehicles.
A transport management system makes it easier to match the right vehicle to the right job.
TMS and recurring trips
Many transport companies have regular trips.
If the same customer requires the same type of trip every day or every week, there is no need to create the job from scratch each time.
A TMS system can handle recurring trips, making planning more efficient.
TMS and waybills
Once a trip is complete, the trip often needs to be documented.
If the documentation is handled digitally, it can be linked directly to the transport job.
This makes it easier to find the information later.
It also reduces the risk of paper-based waybills going missing or delaying invoicing.
TMS and invoicing
Transport management does not necessarily end when the vehicle arrives at its destination.
The trips must also be finalised administratively.
If the customer, price and trip details are already in the system, the information can be used directly for invoicing.
This reduces duplication of work and shortens the process from completed trip to invoice.
What are the benefits of a TMS system?
The biggest benefit is an overview.
A transport management system can make it easier to see:
What needs to be driven.
What has already been driven.
Who is driving.
Which vehicle is being used.
What documentation is available.
What still needs to be invoiced.
It can also reduce the need to enter the same information multiple times.
TMS systems for smaller hauliers
For smaller hauliers, it is important that a TMS system does not become unnecessarily complicated.
A system with hundreds of features does not necessarily provide more value.
If day-to-day operations primarily involve receiving jobs, planning trips, sending information to drivers and invoicing customers, the system should support precisely that.
Boxboxbox as a TMS system
Boxboxbox is a Danish transport management system developed for small hauliers and transport companies.
Among other things, the system brings together transport planning, drivers, vehicles, a dispatch overview, recurring trips and invoicing.
The aim is to provide smaller transport companies with the features they actually need, without making the system more complicated than necessary.
Frequently asked questions
What does TMS stand for?
TMS stands for Transport Management System.
What is TMS called in Danish?
In Danish, terms such as ‘transport management system’ and ‘transport administration system’ are used.
What is a TMS system used for?
A TMS system is used to plan and manage transport jobs, drivers, vehicles, documentation and invoicing.
Can small hauliers use a TMS system?
Yes. A TMS system can be suitable for both sole traders and smaller hauliers and transport companies with several vehicles and drivers.
Is Boxboxbox a TMS system?
Yes. Boxboxbox is a transport management system developed with a focus on smaller hauliers and transport companies.