TMS Software or FreightCenter: Why Not Have Both?

TMS software is quickly making a name for itself in the freight and transportation industry. Before the adoption of this technology by third-party logistics (3PL) providers, the term "TMS" was mainly defined as a Microsoft Virtual Basic control or transcranial magnetic stimulation (a treatment for depression). In as little as five years, our industry has redefined TMS as an acronym for transportation management system.

Cirrus TMS Software for shippers, brokerages & enterprises

What is a TMS and what does it do?

No TMS is exactly the same. Some are geared toward non-asset based 3PLs and some are built for managing asset-based companies. At the end of the day, a TMS simply helps any business manage all the facets of shipping freight - from rating carrier contracts to generating auto-completed shipping paperwork. There are other fringe benefits of a TMS like freight invoice auditing, customer account management, and shipment tracking that all contribute to what a TMS does.

What TMS is right for you?

It depends on your shipping frequency and business objectives. If you do not have carrier rates of your own, you may benefit more from TMS software that was developed by a 3PL. In some cases, you can use a free version of the 3PL's TMS in exchange for using its rates and services.

"Not surprisingly, third-party logistics specialists were among the early adopters of TMS. In fact, it was their knowledge of the software's capabilities that enabled 3PLs to capture new business by promising to cut their clients' freight costs—even offering to do so on a gain-sharing basis. After all, it's a daunting task for a human being to sift through long lists of carriers to select the best one for a given load. A TMS, however, boasts the "brain power" to do that in a flash," says James A. Cooke, "TMS or 3PL?" in DC Velocity.

If you are a frequent shipper, large business, small 3PL or other type of business that has negotiated contract rates from carriers, than you will probably benefit more from an enterprise-level TMS like Cirrus TMS.

Still unsure where to start? Tell us your business objectives, goals and challenges in the comments section. Chances are, we can find an affordable solution that meets or beats your expectations.