The Role of TMS in eCommerce

The eCommerce industry has been growing rapidly as more and more customers are starting to embrace online platforms when buying. Transport Management Software forms part of software that can be used in order to support eCommerce growth.

Transport Management Software, also known as TMS, is a logistics platform that is used to plan, execute and optimize the shipment of goods. TMS is, in most instances, part of the supply chain management system. It provides complete visibility into daily transportation operations and ensures that goods are delivered on time.

eCommerce mainly focuses on fulfilment and distribution. To provide customers with great service, it is essential to concentrate on not only offering the best product and an affordable price but also offer service and fulfilment during the delivery process. One of the best methods that eCommerce businesses can make use of to provide accurate and on-time delivery is through using TMS. TMS can bridge the gap that exists between order management as well as warehouse technologies.


How TMS Optimizes eCommerce


Using TMS offers many advantages to eCommerce businesses that choose to implement it. There are plenty of opportunities that it presents, and some of these opportunities offered include:


1. Increased Efficiency

TMS systems offer better visibility into operations, improving your warehouse’s efficiency and other aspects of your supply chain. It can identify the patterns you use through machine learning, which can reduce the risk of disruptions occurring. Identifying risk can improve inefficiencies while lowering your maintenance spend and improving labour productivity. It assists managers in coming up with solutions to problems before they arise, which can prove to be an advantage for any business. All these opportunities ensure that the supply chain operates better.


2. Better Delivery Options

In a world that prioritizes variety and convenience, delivery options are an essential aspect of eCommerce operations. Offering customers with multiple delivery options should be a priority, as well as significantly cheaper or accessible delivery options. Though this is beneficial for customers, it can lead to eCommerce businesses having to manage high delivery costs and providing fast order turnarounds. A TMS system can assist companies in providing their customers with the delivery options that they can require without compromising the service they offer.


3. Advanced Inventory Management

TMS contains an inventory tracking system that can easily track where your inventory is located at any given time. The ability to track inventory ensures that the right merchandise is always located in the right place and at the right time. This gives you better control of your inventory, which further reduces the costs you incur when goods are misplaced or stolen. You can also eliminate the time you spend looking for items as you will be better organized and allows your business to become more efficient. Inventory tracking systems will inform you of your minimum and maximum quantities of inventory which prevents you from experiencing product shortages.


4. Reduced Costs

Transport Management Software can reduce the costs of an eCommerce business as it improves how goods are transported. Freight is always sent through full truckload, which makes it the cheaper option; however, in eCommerce, it might be nearly impossible to use full truckload as the weight and volume of orders might be too small to do so. Given this, TMS makes it easier to use collaborative consolidation to consolidate your freight if it is too small.

Another method that TMS uses to reduce costs is through automation. TMS can automate the processes and actions you take by using advanced algorithms used to make decisions. Ways where artificial intelligence and machine learning can make processes easier include data capturing, using handheld scanners and automated identification technologies – which can help automate processes.


5. Offers Full Visibility

In the past, transportation visibility was something that was offered in supply chains as an added benefit; however, in recent years, it has become a necessity for customers. Customers expect to track shipments and receive updates regarding the progress of their orders. Therefore, eCommerce businesses need to offer fast and transparent deliveries each time. In order to gain and offer complete visibility of deliveries to customers, companies need to have real-time data.

TMS can provide this data, as it allows you to track your freight in real-time. Through a GPS enabled map, you can see the routes that drivers are taking and their precise location. The ability to track drivers ensures that you can direct them to choose the best roads and create the best schedules for deliveries.


6. Improved Customer Experience

The most critical aspect for eCommerce businesses is to offer their customers the best possible service. The customer has high expectations, and they require a satisfying experience from the time they discover a product to the moment that their packages are delivered. Offering customers with a fantastic delivery experience is also key to them making a repeat purchase, so it is vital to offer customers the fastest and cheapest delivery while offering complete visibility of the process. TMS ensures that you can provide all three aspects to your customers, which guarantees customer satisfaction each time.



With the world embracing eCommerce and 24/7 online shopping, the delivery aspect must become better to meet customer expectations. Technology plays an essential role in realizing expectations, and one technology solution that can significantly optimize eCommerce is TMS. The integration of eCommerce and TMS is crucial in today’s market.