Transportation management software is designed to integrate with procurement and shipping software in order to evaluate both inbound and outbound orders and suggest multiple transportation solutions to the user before selecting the best method and most affordable provider. Sometimes referred to as a transportation management system (TMS), the transportation management software then provides electronic load tendering and communication tools for choosing between potential carriers. Finally, the TMS implements shipment tracking and tracing to deliver the optimum shipment with the chosen carrier and provides freight audit and settlement of payment.
Transportation management software frequently integrates with ERP tools and warehouse management software in order to accurately forecast demand and shipment volumes. Additionally, transportation management software may include fleet management software among its software modules.