Last Updated: January 08, 2024
Transportation Management System Development
Published On: December 20, 2023

Failing to perform logistic operations systematically leads organizations to face many consequences such as increasing expenses, customer frustration, and more. In such cases, Transportation management system development comes as a solution. 

Implementing a transportation management system helps businesses of all sizes in various ways be it planning, carrier, freight, optimizing efficiency, or minimizing cost. It fosters the demand for transportation management systems. The overall market size of transportation management systems in 2022 was $40725.1 million and is projected to reach up to $61937.69 million by 2028

Let’s explore everything about transportation management systems from the basics to the development process and the way they add value to business.  

What is a Transportation Management System?

The transportation management system is a type of software solution that makes various tasks less complicated, including planning, strategy management, implementation, and tracking operations. 

Being a comprehensive system, it eases the complications involved in managing the transportation of products from their source to their destination. Be it carrier selection, route planning, or real-time monitoring, the transportation management system is capable of letting organizations perform everything with higher efficiency. 

This software platform can be integrated most easily with many components including warehouse management, order management, freight payment system, and more. Transportation management systems not only help businesses improve logistic performance while reducing costs but also help them make decisions based on data.   

Importance of a Transportation Management System

A transportation management system assists businesses in improving their supply chain performance by optimizing logistical operations and ensuring the proper movement of goods from one place to another. Whether you need to track inventory, optimize routes, or get real-time visibility, transportation management systems cater to your business in various ways.

It ensures the success of business by letting them streamline their transportation operations, which lead to higher productivity and revenue. As mentioned, businesses can make data-driven decisions through a transportation management system, which helps them progress in the right direction driven by impeccable strategy.

It also fosters the growth of business by minimizing fuel consumption and transit times, which also improves sustainability.  

Types of Transportation Management System

The transportation management system is available in various types. Every type of this system is meant to cater to the specific needs of organizations to make their transportation process smooth and efficient. Let’s have a look at some of the popular types of transportation management systems:

Fleet Management System

As the name suggests, the fleet management system is useful for organizations when it comes to managing a fleet of vehicles. The system lets organizations do several things hassle-free, be it monitoring fuel consumption, tracking vehicles, getting real-time updates, or managing maintenance schedules.

Carrier Management System

A carrier management system ensures a good collaboration between carriers and shippers by improving communication between them. It helps businesses choose a perfect carrier according to various factors including performance, cost, reliability, and more. It offers a tool that is capable of determining carrier performance, managing carrier contracts, or keeping an eye on the shipments.

Order Management System

From getting orders to the final delivery of goods, the order management system can handle everything. It ensures the order fulfillment process is optimized properly while the allocation of resources in a proper way. Order management system ensures order gets delivered on time.

Warehouse Management Systems

The warehouse management system is necessary to improve the supply chain and also ensure the proper movement of goods within warehouses. The systems work effectively to ensure the storage, picking, and preparation of products with higher efficiency.

Visibility Systems

This system helps organizations to keep track of shipments on their supply chain. It’s highly useful in making customers and businesses well-informed about both the status and location of products. Improved visibility minimizes the risk of delay and also enhances customer service.

Route Planning Systems

Route planning systems consider numerous factors such as fuel cost, distance, delivery time, traffic conditions, etc., to help organizations get the best and cost-efficient routines for transportation. It minimizes transportation costs while ensuring on-time delivery.

How to Create a Transportation Management System from Scratch?

You need to chalk out a robust strategy and have proper planning when it comes to creating a transportation system from scratch. You need to be familiar with the complete logistic process in-depth and also the integration of technology. Let’s explore some of the steps of developing a transportation management system:

1. Know your Goals and Requirements

Before you proceed to build a transportation management system, it’s necessary to be clear about your core requirements and objectives. You should find out several challenges your business faces in logistics and transportation. The next thing you need to have is a well-defined objective.

2. Make a Thorough Analysis

The next step in developing a transportation management system is analyzing your existing transportation process thoroughly. You need to be aware of issues in your current system. Besides, you should analyze in-depth the volume of shipments, geographical scope, diversity of carriers, etc. of the transportation system.

3. Create a Flexible and Scalable System Architecture

Make sure the design architecture of your transportation management system is scalable. So, it can adjust accordingly with the growth of your business. Your system architecture should be capable of handling increased transaction volumes and also can accommodate several new features. 

Besides, you should also make your system architecture flexible to make sure it can adapt to the changes in the business processes, be it technology advancements, business processes, or regulations. It also ensures its relevance and effectiveness even in the long term.

4. Create Interface

While designing your transportation management system, you need to craft a user interface for every stakeholder associated with your transportation ecosystem. You need to create a user-friendly and intuitive user interface. It facilitates you to get real-time visibility into your process. Make sure every stakeholder is capable of accessing and navigating the user interface properly.

5. Develop Functionalities

You need to know how to develop various core functionalities in your system, including shipment tracking, route optimization, carrier management, and more. You need to create algorithms for route optimization by considering several factors like fuel efficiency, distance, and delivery time.

You should integrate a tracking system that ensures a real-time update on shipments. You need to develop a carrier management module to manage, onboard, and determine carriers. Build reporting tools for analyzing KPIs (key performance indicators) and also make decisions based on data.

6. Integration with External Systems

This step involves integration with various business systems including warehouse management systems, enterprise resource planning, and others. Integration serves its core purpose of ensuring data consistency and also removing silos, which facilitates a holistic view of the supply chain. Application programming interfaces (APIs) contribute a lot when it comes to connecting multiple systems and data exchange.

7. Automation

Now, you need to automate your transportation management system to ensure it functions flawlessly. You can do this by automating various tasks including route planning, order processing, document generation, and many more. It’s not only effective in minimizing errors but also improves the speed of the system. 

Automation allows transportation management systems to work efficiently while maintaining a higher accuracy. You can leverage machine learning algorithms to enhance route optimization according to past data.

8. Implement the Robust Security Measures

Prioritizing security is essential when it comes to transportation management application development due to sensitive logistics data. You need to implement powerful security measures in the system to prevent any sensitive details, including access controls, encryption, and regular security audits. 

Make sure your transportation management system adheres to the advanced standards and regulations in the transportation industry to ignore any legal issues. 

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Top Features of the Transportation Management System Software

Transportation management system software plays a crucial role in helping businesses make their operations more efficient and thus highly productive. Meanwhile, to make your transportation system more effective and efficient, you need to implement some robust features that are as follows:

1. Integration of Transportation Processes

One of the core features of any transportation management system is its capability of integrating different transportation processes into unified platforms; including shipment planning, order management, freight payment, and execution. Once you centralize these processes, you can improve collaboration between various departments, which leads to minimizing errors and enhanced efficiency.  

2. Real-Time Visibility and Monitoring

Another feature that your system can include is real-time visibility and monitoring of the overall transportation network. It should be capable of offering monitoring, delivering statuses, tracking shipments, and recognizing potential issues in real-time. With this visibility and monitoring, organizations can tackle several challenges and make a fully informed decision.

3. Route Optimization

Route planning is one of the most critical aspects of the transportation process. Transportation management system implements advanced algorithms for route optimization and takes into account several factors like weather, traffic conditions, and vehicle capabilities. It helps minimize transportation costs and also removes fuel consumption & lowers the environmental impact of logistic operations. 

4. Carrier Management

Carrier management is another crucial feature of a transportation management system that enables organizations to make an effective comparison of carrier performance, and negotiation rates, and choose affordable & trustworthy carriers for various specific shipments.

In addition, the software system tends to automate the carrier selection process, which ensures the selected carrier matches the predefined criteria, including on-time delivery performance and cost-efficiency.

5. Inventory Management

Inventory management is another must-have feature for your transportation management system. An organization can align inventory and transportation processes to optimize stock levels, while reducing carrying costs and also prevents overstock scenarios. It ensures proper inventory management while improving the supply chain. 

6. Order Processing

With order processing, organizations can make the order process well organized by automating several tasks like order entry, documentation, and consolidation. It leads to quick order fulfillment, enhanced accuracy in shipment execution, minimized lead times, etc. Another advantage of automation is it reduces manual errors while making order processing more reliable.

7. Analytics and Reporting

Analytics and reporting help businesses get real-time insight into the overall performance of transportation. They can use a transportation management system to create a fully customizable report on various crucial metrics, including delivery times, transportation cost, carrier performance, etc. It helps you make the right transportation strategy. 

How Much Does It Cost to Build a Transportation Management Application?

It’s one of the most commonly and frequently asked questions among those planning to develop a transportation management app. Meanwhile, they need to understand there’s no straight answer to this question. The reason is development cost of each application varies based on numerous factors such as complexity, technology stack, or features. 

A transportation management software development company can help you know the estimated cost by getting ideas of your project requirements, business needs, goals, etc. Well, the cost of transportation management application development ranges from $50,000 to $300,000.

Some Factors that Affect the Cost of Transportation Management Software

As we already mentioned, many factors play a crucial role in determining the overall cost of transportation management software. Let’s get an in-depth overview of all those factors:

Team Strength

The number of designers, developers, QA analysts, and others working on your transportation application development impacts a lot on its cost. If you develop a simple app, you need a team consisting of one designer, two developers, or two QA professionals. If you want to develop a complex app, you need more professionals to work on your project.  

Platforms

Developing an application on the iOS platform is highly expensive compared to Android. So, the selection of a transportation management app development platform impacts the overall cost of app development.

Features

A basic app includes limited features whereas a complex app includes more features. And the more features an app has, the more expensive it will be.

Apart from the above factors, other things that impact cost include integration with external systems, level of customization, use of technologies, UI/UX design, maintenance and updates, and testing

Benefits of Transportation Management System Development

A transportation management system helps businesses with a myriad of benefits to get rid of complications in logistic operations and supply chain management and handle them properly. Let’s have an in-depth look at some of the most prominent benefits:

Cost Reduction

With a TMS, a transportation business can optimize various things like load consolidation and route planning. And thus they can utilize their resources perfectly. 

It helps them reduce fuel consumption and save a lot in transportation costs. The system also helps businesses find cost-efficient carriers, avoid unnecessary fees, negotiate favorable rates, etc. which also contribute a lot to fuel efficiency.   

Enhanced Visibility

A company can use a transportation management system to get real-time visibility of the entire process of the supply chain. With this transparency, they can track inventory levels, monitor shipments, and find any potential delays. It helps them respond timely to any unexpected disruptions to make sure the operation is less impacted. 

Operational Efficiency

Transportation management systems ensure operational efficiency by automating different processes. The system minimizes manual intervention and thus reduces errors and also enhances overall efficiency. 

Customer Satisfaction

As mentioned, the transportation management system offers improved visibility and ensures higher operation efficiency, which leads to improved order accuracy. It helps businesses to provide the exact delivery estimate to clients. It minimizes transit times and improves customer loyalty and brand reputation.   

Data-Driven Decision Making

Since the transportation management system collects vast amounts of data, it enables businesses to make well-informed decisions according to real-time insights. With the help of analytics, businesses can easily discover trends, optimize routes, and improve the performance of the supply chain.  

Why Choose Us For Transportation Management Application Development

With 14+ years of industry experience, Moon Technolabs stands as a stalwart, when it comes to transportation management custom software development. We have an impressive track record in crafting cutting-edge transportation management software solutions that add value to your business. 

We combine our proven expertise with innovative technologies to create tailored solutions that match the specific needs of your transportation business. We have a group of adroit designers who craft user-friendly interfaces and great functionalities, which ensure optimal performance of the app with seamless navigation. 

Moon Technolabs is committed to providing scalable transportation management solutions while prioritizing security and efficiency. We integrate next-generation technologies like real-time analytics and GPS tracking to make your app stand out and more purposeful.  

FAQs

A transportation management system is responsible for managing multiple tasks such as carrier selection, route planning, shipment monitoring, and tracking the supply chain. It automates the logistics operation and provides real-time insight to the company. It helps businesses reduce transportation costs while enhancing delivery timelines.

Transportation management encompasses planning and optimizing routes, executing and monitoring operations, ensuring documentation and regulatory compliance, and effectively managing costs associated with transportation activities.

Well, the typical timeframe for building a transportation management system is not constant for every app. It varies based on several factors such as features, project complexity, and more. Developing a simple transportation management solution may take at least one or more than one month whereas complex ones need more months or even a year

The major advantage of a custom TMS over an off-the-shelf solution is it can be aligned with your business process uniquely with the tailored features. It addresses specific operational requirements of business while optimizing workflow and thus enhances efficiency. It helps businesses adapt to the changing requirements with tailored integration and thus gain a competitive edge.

You should prioritize several features such as real-time tracking, integration capabilities, route optimization, user-friendly interfaces, powerful analytics, automation, etc.
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Jayanti Katariya

Jayanti Katariya is the CEO of Moon Technolabs, a fast-growing IT solutions provider, with 18+ years of experience in the industry. Passionate about developing creative apps from a young age, he pursued an engineering degree to further this interest. Under his leadership, Moon Technolabs has helped numerous brands establish their online presence and he has also launched an invoicing software that assists businesses to streamline their financial operations.

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