With the evolution of globalization, the transportation landscape is at its peak. Besides the supplies of huge inventory between the importers and exporters, the eCommerce platforms even allow the normal users to order the products from other countries. However, the inefficiencies in the supply chain and transportation cause delays and increased costs, the burden of which indirectly falls on the end customers. So, transportation management systems development is the solution that streamlines the transportation process, makes things more partial, and thus helps in achieving better efficiency. 

According to Precedence Research, the global transportation services market size was valued at $7.3 trillion in 2022 which is expected to achieve a valuation of $15.94 trillion by the end of 2032. The market is expected to show a CAGR of 8.11% during the forecasted period. Thus, there is no doubt in the truth that the demand for TMS Software Development is only going to increase. 

What is a Transportation Management System?

What is a Transportation Management System?

As the name suggests, the Transportation management system is digital software incorporated with different technological features that help businesses to seamlessly execute, plan, and optimize the movements of goods and logistics, be it incoming or outgoing. At the same time, this software also makes sure that all the legal compliance and proper documentation are performed for the respective transportation activity. However, this kind of software is used mostly in the transportation process of heavy supply chain management where the quantity and investment are significant. 

Transportation management system is also known as transportation management solutions and transportation management software. The main goal of these digital tools is to enhance visibility in everyday transportation operations, documentation, trade compliance, safety of logistics, and the timely delivery of goods. The software can be used for any transportation operations including air, sea, or land. 

How TMS Software Works?

The transportation management system is equipped with a transactional and communication system that provides real-time data to the admin and establishes better control. This real-time data helps the owner to make better decisions, plan, and then strategize the complete transportation process. There are following three functions that represent the complete working criteria of TMS software: 

Route Planning 

The transportation management system identifies the least labor-intensive route and uses the information to craft a transportation plan. This plan is customized according to different factors including the number of cargo, buyer’s demands, and means of transportation. 

Support and Execution 

The TMS software supports the documentation verification and custom clearance tasks to ensure that the logistics are successfully delivered to the target location without any interruption. This is a great tool that streamlines the execution of the supply chain. 


This is one of the best capabilities of TMS where it can track several things during the journey which include driver’s performance, logistics locations, sync the schedule, and ensure the overall safety of the logistics. 

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Why Invest in TMS Software Development?

Reasons to Invest in TMS software

There is no doubt that TMS software development cost is very high and needs good resources. So, there might be better ideas than relying on some words to decide on transportation management system development. So, here are some of the statistics that will help you understand the significance and growth of transportation management system software- 

  • According to Marketsaandmarkets, the global management system market size is valued at USD 13.5 billion in 2023. 
  • The same market is expected to achieve a valuation of USD 33.3 billion by the end of 2028 by shading the CAGR of 19.7%. 
  • Talking about the USA alone, the transportation management system market size accounted for USD 3.05 billion in 2022 which will increase with a CAGR of 11.32% between 2023-2032 to achieve a valuation of USD 8.91 billion by the end of 2032. 
TMS Software Stats

So, these stats interpret well that the transportation management system software market is only going to grow. It has never been a better time than now to invest in such a concept that plays a core role in the global supply chain among the international markets. 

Benefits Of Implementing Transportation Management Systems in Your Logistics Business

There are a range of benefits that the logistics businesses can leverage with the help of a transportation management system in place. Not only does it enhance the productivity of the workforce, but it even ensures that the products and freight are safe with the driver by navigating them in real-time. Some of the core benefits that Transportation Management System implementation offers to logistics business owners are- 

Delivery Tracking 

This is the foremost benefit that enables the real-time delivery tracking of your packages to foster 100% transparency in the shipment process. Not only does this help in tracking the position of freight but the owner can use this data to record the time it takes with a particular route and find a better route for the future. 

Efficiency in the Supply Chain 

The software helps to track the position of track drivers, and inventory along with the other processes which increases the overall productivity throughout the process. The efficiency in the supply chain provides a direct benefit to the end users by helping them save the cost. At the same time, the real-time data also keeps the customer updated about their shipping estimation and delivery time. 

Reduced Expenses 

According to the research, the TMS software reduces the freight cost by 3% to 12%. By gathering real-time data and collecting the necessary information, the owner can make smart decisions for the future to further reduce expenses. 

Enhanced Customer Service 

The real-time data not only helps the freight owner but enhances the customer service and user experience. Customers can see the location of their parcels and get an idea about the estimated time of arrival for their orders. At the same time, the clients can access the up-to-date freight tracking. 


By allowing what-if analysis for tactical and strategic decision support, TMS software also offers a great benefit of analytics. With the different types of analytics, the owner can measure the actual scenarios with actual results, thanks to the incredible database of information that comes with TMS. 

Warehouse productivity and efficiency 

TMS can be integrated with the Warehouse Management System. With this integration, the warehouse manager can easily locate the location of stock stored in a particular place in the warehouse. Similarly, if the stock is in transit, that information can also be accessed with this software. 


Be it operation, customer service, or finance-oriented, reporting can be made much easier with the TMS system. Also, these reports can be shared with the relevant stakeholders to maintain transparency. Reporting can be done on an ad hoc basis or schedule basis. 

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Key Features of the Transportation Management System Software

Key Features of transportation management system Software

Transportation management systems have redefined the supply chain landscape and the control one has over the process. Being one of the most affordable yet useful technological innovations, the TMS software market has experienced a spike in very little time. However, you must always remember that the usability of such software is only determined by the features it carries. So, here are the must-have features for the transportation management system software that will help you streamline your logistics and supply business up to a significant extent- 

Transportation Planning 

Transportation planning is the feature that helps employees plan routes, generate documentation, entertain shipment capacity, and much more. To make sure that the overall planning of transportation is carried out efficiently, it carries a lot of sub-functionalities which makes the transportation planning even seamless. Here are the core functionalities- 

Order Management This is the transportation management system feature that helps to distribute the transportation orders between contactors, assign the transport, and permit to dispatch of drivers. It comes with a dashboard that provides real-time status of each order and the important events. 
Tendering This functionality provides the shipment details so that the carriers can bid on the contract and deal with tender-related formalities. 
Load planning This feature includes loading the space for trucks, containers, and other delivery vehicles for cargo delivery management. Many systems come with a 3D load plan feature that helps the admin view and thus modify the cargo distribution and utilization. 
Route planning Route planning is the feature that provides insights into available routes, tariffs and taxes, possible delays, and much more. The business intelligence capability is often integrated into the feature to provide real-time updates about road closures and geographical hurdles. 
Documentation management This facility allows the drivers and owners to generate, store, and share important documentation like bills of lading or tax receipts. 
Shipment rate management Shipment rate management is the transportation management system feature that automatically calculates the truckload, and intermodal shipping rates and provides the fare estimation. It also takes care of discounts, contract agreements, and base rates when calculating the fare.

Transportation Execution 

When the agreement between the carrier and shipper has taken place, it is the time for load to be transported. So, TMS software carries a lot of features that make transportation execution even more seamless and managed. 

Fleet management Fleet management is one of the biggest challenges when talking about logistics and transport business. With this feature, you can assign the vehicles to drivers, manage fuel consumption, track the vehicle condition, and much more. 
Dock scheduling Shippers have to schedule the dock appointments so that the truck drivers can come to the dock at the right time. By considering the workload, number of drivers, and logistics, Dock scheduling helps in preparing the chart and even updating it in case of any change. 
Real-time tracking The real-time track facility helps the relevant stakeholders monitor the warehouse facility, vehicle location, shipment status, and much more seamlessly. Also, this transportation management system features generates which allows customers to track the package. 
Multi-stakeholder communication During the whole transportation process, the driver needs to communicate with different people for different reasons. So, TMS software comes with a multi-stakeholder communication feature that connects the customer, vendor, logistics company, and driver. 
Customer version of the softwareThis is the customer panel where they can track their order, access the invoices, and see the status of their delivery. 

Process Optimization

To analyze a lot of critical factors like service level, price, transit time, and much more, the process optimization feature is imparted in the TMS software. Here are the core functionalities that you leverage with the process optimization feature- 

Business intelligence Equipped with AI capability, this feature transforms the raw data into useful business information. So, one can benchmark the carriers, forecast the demand for the product, predict the disruption, and much more. 
Fleet management Fleet management streamlines the process of manager coordination, vehicle maintenance, supervising, and other equipment in the preferred state. 
Route optimization Based on the weather and environmental conditions, the TMS can calculate the estimated time of delivery and even suggest better routes.
Event management Diagnosing fuel consumption, unsafe driver behavior, unplanned stops, etc. are some of the tasks performed with this feature. 

Administrative features 

There are a lot of activities that a company has to perform even after the delivery has been executed. So, the Transportation Management System helps to execute these activities seamlessly with the least effort- 

Invoice Once the shipment has been delivered and the full payment has been made, the logistics firms have to keep the invoices and bill receipts safe with them. So, this software allows the secure storage of such important invoices. 
Claim management Claim management is the feature where the documents proof about cargo damage in transit, vehicle damage, item loss, etc are recorded and then shared with the insurance company for claim processing. 
Reports management The transportation management system software equipped with a reports management feature allows the reports about different operating expenses, key performance metrics, invoices, and inventory statuses, 

Futuristic Features to Create a Standout 

All the above-defined features are the most essential ones that most of the existing TMS software in the market is offering to their users. However, to stand out from existing players and achieve a competitive advantage, you need something more futuristic and better than them. So, here are some of the advanced features that will help your TMS software stand out of the crowd. 

Dedicated mobile application 

Having a mobile application for your TMS software can be a great plus point, making it accessible to a larger audience. At the same time, it will make it easier for the relevant stakeholders to use the software through a mobile app instead of logging into a portal every time. 

3D modeling of load planning 

You can execute the load planning in the TMS software with the help of 3D modeling. By integrating this technology, the admins can easily view and thus modify the cargo distribution and utilization. For example, you can add the details about the dimensions of the fleet and cargo in the system and it will help you best utilize the space in the warehouse. 

Blockchain technology 

Blockchain technology enables the relevant stakeholders to record the events and share them with the peer-to-peer network. So, the partners, customers, and auditors can easily check the loading, delivery activities, and transportation by themselves. 

Interlinked shipment monitoring 

This new feature helps to monitor the containers and seal numbers across different carriers, ports, and customs. At the same time, it informs the shipping lines, authorities, and third-party providers across pre-, main, and on-carriage movements. TMS even helps in informing the truckers about goods that are ready for pickup and cleared by the freight forwarders. 

Dedicated fleet management module 

This is the advanced tool that grabs the information by installing the sensors, work orders, and checkups. So, the algorithm helps to identify the likelihood of optimal maintenance and malfunctioning. 

Adaptive intelligence and machine learning 

Using historical data, this feature guides regarding the demand for inventory, the time it takes to cover a particular route, the behavior of the drivers, estimated time for delivery, stock that needs to be called, and much more. It makes the decision-making much easier for the inventory and warehouse owners. 

What Tech Stack Required to Develop TMS Software?

Required Techstack to Develop TMS Software?

Tech stack or Technology stack is the suite of different technologies that are brought together to impart the different functionalities into the software. Being the backbone of the complete digital product, it is very important to choose the constituents of the technology stack for the software. Here is a preferable technology stack that assists in building TM software-

Backend Elixir or Ruby
Front end React.js or Ember.js
HostAWS/GCP or customer server 

What Third-Party API Integration Required in TMS Software?

The transportation management system has to be connected to your various existing software and tools so that the data can be transferred and different practices can be executed daily. Here are some of the third-party and API integrations that you will have to make with your TMS software to enable it to work seamlessly and provide you desired results. 

  1. Supply chain management (SCM) System- It is important that you integrate your TMS software with the existing supply chain management system. This will help in organizing the shipments across the supply chain. 
  2. Enterprise resource planning (ERP) solutions- This tool carries information about all the human and transportation resources available to the shipper. By integrating enterprise resource planning solutions, the TMS software can exchange information about orders and help better manage transportation activities. 
  3. Warehouse management system (WMS)- this is the software that consists of every detail about the warehouse space, availability, location of the logistics, and much more. So, integrating this platform into TMS software helps in the loading and unloading of shipments along with imparting better planning for item movements. 
  4. Accounting and Taxation Solutions- TMS when integrated with accounting and taxation solutions helps in better monitoring of cash flow management, claims management, billing, and reporting. 

How Much Does it Cost to Develop TMS Software?

There is no doubt in the statement that transportation management software can streamline a lot of tasks in the supply chain. However, when a business thinks about getting one, the cost is something that concerns the most. Undoubtedly, getting a software solution is costly but it is worth the investment. 

When talking about TMS software development cost, it can range from $35,000 to $250,000. The reason behind the statement is that there is no exact cost of developing TMS software. The Transportation management system development cost depends on a range of factors. So, instead of sticking to a random figure, let’s have an understanding of the factors that determine the TMS software development cost- 

Location of the development team The country where you are hiring the development team for your project says a lot about the cost. Hiring developers from countries like the USA, UK, Australia or Europe will cost you more than twice that of hiring developers from countries like India. 
Complexity of the projectMore complex projects tend to be costlier. For example, if you want to add the blockchain, metaverse, AR/VR, Artificial Intelligence, and Machine learning capabilities to your software, it will add the dollars to your TMS software development cost. 
Features The number and types of features are a big determinant of Transportation management system development cost. Adding complex and advanced features to your software will increase the cost. 
Time-taken Adhering to the hourly cost of developers, the time it takes for them to complete your project also says a lot about development costs. The longer the project to complete, the higher the cost. 
Maintenance and Support If you are opting for maintenance and support assistance from your development partner, it is charged separately thus making the overall TMS software development cost higher. 

How Octal Can Help You Develop a Custom Transportation Management System?

Transportation Management System Development

TMS software can increase the productivity of your supply chain and help you better manage and use the resources that you have. However, it is also noticeable that you can only leverage the advantages of such advanced software only by partnering with the right development company. As we interpreted, it takes a good investment and time to have your TMS software, and putting the project into the wrong hands might make you lose time and money. 

Octal IT Solution has been working in the software development landscape for more than 15 years and has assisted a lot of medium and large enterprises in digitizing their operational processes. Having worked on several projects, we have enough experience in developing TMS software and conquering every challenge that falls the way. At the same time, we are also familiar with the areas where the cost can be saved without compromising the functionalities. 

We have a great client retention rate, only because of our strong client relationships. We commit to the deadlines and achieve the milestones as defined in the blueprints. Having deployed the software, Octal IT Solutions provides ample support to their clients so that the software functions seamlessly, ensuring the best user experience. 


With technological advancements, the management of supply chain and transportation businesses has also been reshaped. The Transportation management system software makes it very easy for business owners to track their logistics, get a forecast about the demand in the market, and make smart decisions. At the same time, this software even enables the best utilization of resources to maximize profit. Developing such software has never been a better idea than now when it offers competitive advantages. 

Octal IT Solution invites you to your idea and starts a digital journey to transfigure your business processes and brand presence.


How Big is the TMS Market?

The market size of TMS is calculated to be around $13.46 billion in 2023 and is expected to rise to 35.34 billion in 2032.

How Do You Create a Transport Management System?

To create a transport management system, we would connect with you and understand your business requirements first. The software development process involves 
Requirement gathering 
Market research 
Design and development 
Deployment and launch

What is the Transportation Management System?

To create a transport management system, we would connect with you and understand your business requirements first. The software development process involves 
Requirement gathering 
Market research 
Design and development 
Deployment and launch

What are the Four Basic Functions of Transportation Management?

The four primary functions of a transportation management system are: 
Transportation planning
Freight management 
Inventory management
Performance management

How Much Does it Cost to Develop a Transportation Management System?

When talking about TMS software development cost, it can range from $35,000 to $250,000. 

How Long Does it Take to Implement a TMS?

Implementing a TMS may take around two to three months depending on the complexity of the software and the number of features required.

Digital Marketing Manager

Driven by a deep curiosity and a thirst for knowledge, Mann constantly seeks to uncover the latest trends and innovations in the tech industry. His ability to dive into complex concepts and distill them into engaging content sets him apart as a reliable source of information for his readers.

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