TMS Varieties: The Pros and Cons

03.08.22 10:26 AM Comment(s)

What is a TMS?

Transportation management systems (TMS) are software solutions that help shippers and logistics service providers plan, execute, and optimize their transportation operations. A TMS can be used to plan and track shipments, optimize routes, and manage driver schedules. TMS solutions can also be used to create digital freight contracts, track compliance with service level agreements, and monitor KPIs.


There are many different types of TMS software on the market, and the right system for your company will depend on your specific needs and operations. Regardless of which technology you choose, a TMS can help your company save time and money by improving the efficiency of your transportation operations.

There are three main types of transportation management systems (TMS):


Developed in-house by a company’s IT department or third-party developer.


Hosted on the company’s own servers. 


Hosted on remote servers and accessed via the internet.

Each type of TMS has its own advantages and disadvantages. A homegrown TMS is typically the most flexible and customizable, but it can also be the most expensive and time-consuming to develop and maintain. An On-premise TMS is usually less expensive and easier to implement than a homegrown TMS, but they are less flexible and not as easily scalable. The cloud-based TMS is the most popular, and typically the easiest to implement and the most scalable, but they can also be quite expensive. Cloud-based rate sourcing tools typically offer real-time data and a variety of analytics options to help procurement departments manage the bidding process.

A TMS can help businesses plan, execute, and track their transportation operations. They can offer a number of benefits, including improved visibility, increased efficiency, and cost savings. If you're interested in learning more about transportation management systems and how they can benefit your business, contact us to schedule a free discovery call.

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