From the course: Supply Chain and Operations Management Tips

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Learn about transportation management systems (TMSs)

Learn about transportation management systems (TMSs)

From the course: Supply Chain and Operations Management Tips

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Learn about transportation management systems (TMSs)

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- For many companies logistics makes up 10% of their costs and transportation is a big part of that. Using a transportation management system, or TMS, can help you manage those costs more effectively. When you think about managing transportation picture your supply chain in terms of three links. The first link is your Inbound Material. That's all of the products that your suppliers are shipping to you. The second link is your Internal Logistics. Where you move products around between your own factories distribution centers and stores. And the third link is Outbound Materials. Things that you're shipping to your customers. Companies can use a TMS to manage the flow of inbound and outbound materials. They might use the same TMS for both, but not necessarily. The TMS managing your Inbound Transportation helps you see which shipments have come from which suppliers and what production orders their intended to fill. The TMS managing your Outbound Transportation can tie shipments to customer…

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