What Are The Benefits Of a TMS for Freight Brokers?

Freight brokers are a vital part of the transportation industry. They manage freight shipments by finding ways to transport goods efficiently and cost-effectively, which benefits both the customer and company. Transportation management systems (TMS) make it easier for brokers to find the right trucking company for each shipment and ensure that all documentation is completed correctly.

TMS systems are there to connect every aspect of your supply chain, so you can meet customer orders and fulfill market demands timely and effectively. A freight broker’s business operations can be improved with the help of transportation management software, which offers transparent service, connection, and communication.

What Is A TMS?

A TMS solution is a type of software that can handle all aspects of the transportation management process. TMS software can help streamline a freight broker’s business by allowing their team to efficiently manage and track shipments, along with automating processes such as routing and dispatching cargo. In addition, it can also help improve customer service by providing timely information about expected arrival dates for deliveries when customers call in with inquiries or complaints.

A transportation management system is able to connect internal and external processes for the logistics process. Essential features, including shipment coordination, carrier access, and electronic documentation, make TMS systems a business-critical tool for freight brokers.

The TMS helps by cultivating a network of carriers throughout the entirety of the supply chain. It functions as the primary hub for executing transportation operations and managing all logistical needs in one place.

Freight Brokers and TMS

These systems have matured over the years to the point where they now have a proven track record, and brokers who don’t take full advantage of the technology miss out on the opportunity to increase efficiency and save on cost.

By relying on outdated, repetitive, and time-consuming processes such as constant telephone calls, faxes, and emails, freight brokers of all sizes risk missing out on the TMS software’s potential for streamlining operations and increasing profitability.

A TMS for freight brokers is a robust, comprehensive system that provides their team with everything they need to operate their business in today’s fast-paced world of logistics. TMS can save freight brokers a lot of time, often spent communicating with every trucking company. Tasks like these are easily automated and made less complex with the right TMS.

What Are The Freight Broker TMS Benefits?

For many types of businesses, a transportation management solution is a part of supply chain management that deals with transportation operations. It usually sits between an Enterprise Resource Planning (ERP) or legacy order processing and the Warehouse Management System (WMS) and/or distribution module.

Transportation management software is a program that provides transparency throughout the process of moving cargo. TMS systems are either Software as a Service (SaaS) or custom programmed for specific needs of the brokerage. More advanced systems are being developed in the cloud with flexibility on a variety of devices.

A freight broker has the potential to receive some of the following benefits provided by the right transportation management software:

Increase Revenue

TMS software enables freight brokers and other logistics providers to plan, optimize, and execute freight movement with complete visibility throughout the entire shipping process. In doing so, the transportation management software helps businesses increase their revenue.

Cost Reduction

A freight broker software benefits the freighting companies by saving them time, money, and resources. TMS software is then able to help the freight broker decrease fuel consumption and get better rates. A TMS also streamlines the invoicing process, which decreases the amount of time spent on administrative tasks.

These features lead to a reduction in costs for companies using TMS software as it eliminates or reduces clerical work related to billing and invoicing. A TMS software also helps freight brokers decrease their costs by analyzing data and producing reports that let them know where they stand with cost savings, leading to more profits for the company. Transportation management software can create and manage loads, ensuring that shipments are moved at the lowest cost with optimal service.


With TMS software, freight brokers can also automate many of their processes, reducing the time spent on administrative tasks. TMS features also help minimize or even eliminate plenty of repetitive work related to billing and invoicing. This leads companies that use TMS software to lower costs in these areas. Automation also helps freight brokers by streamlining their processes, which can lead to a more efficient workflow.

Increased Productivity

A transportation management system also helps increase the productivity of freight brokers. TMS features such as scheduling capabilities and load optimization allow for a more efficient way to manage workflow, leading to increased worker output. TMS software will enable companies to optimize their operations with minimal effort through automation and online access while improving customer service through increased efficiency.

Advanced communication features help improve productivity by enabling freight brokers to communicate with their customers more effectively. TMS software integrates all aspects of the transportation process into a single system, meaning that freight brokers can better track and manage their shipments. This also helps them provide accurate quotes on shipping costs in advance for their clients at any given time.

Better Decision-Making

Businesses that use a transportation management system can see how their decisions affect their bottom line through real-time data analysis. This helps them make better business decisions that will lead to a more streamlined and profitable operation. Advanced data analytics will also help them understand which shipments are worth investing in and focusing on. TMS software can also be used to identify areas of improvement within a business, such as the most effective routes or patterns for efficient delivery.

Minimize Errors and Improve Business Accuracy

TMS software can help freight brokers improve their accuracy and minimize errors in billing and accounting. TMS data provides information about the carrier, route, delivery method, consignee name, date of shipment, weight in pounds or kilograms-allowing for more accurate quoting with a simple click of a button.

A TMS will also keep the company organized by creating a uniform system to manage the business. A TMS software is an invaluable tool for any freight broker agent looking to save money, minimize errors, improve their accuracy and streamline operations. TMS frees up valuable human resources so they can focus on core aspects of the business.

Improve Visibility Across the Supply Chain

A TMS software provides freight brokers with real-time visibility of their shipments in transit. TMS data gives the shipper, receiver, and all other third parties involved visibility into all aspects of a shipment from its pickup point to final delivery. The TMS will communicate directly with carriers via EDI or email exchanges.

TMS systems provide a bird’s eye view of the supply chain and turn the many processes into digestible data for better decision-making. The increased supply chain visibility level of transportation management software helps freight brokers avoid shipment shortages, pairing shipments with suitable carriers to ensure on-time deliveries.

A TMS software allows decision-makers to measure metrics and KPIs to identify inefficiencies before they become problems.

Simplifying Freight Broker Operations

A TMS platform offers an efficient environment to manage, execute, and analyze logistics and supply chain strategies.

A TMS does all the heavy lifting in regards to freight costs through its optimization features. As soon as a driver is assigned, the solution can evaluate thousands of alternatives at a moment’s notice and choose the cheapest choice with an optimized schedule.

Transportation management software will also automate the tendering process through waterfall tendering – highlighting the lowest-cost contracted carrier first. If they don’t accept the load, this process continues down to the most expensive until a carrier takes it.

Transport management systems help automate carrier data by streamlining onboarding carriers, managing their contract rates and terms, and certifying them. They’re also connected to various load boards, such as DAT.com or Truckstop.com, for high levels of competitiveness when carriers can’t meet their service requirements.

With freight brokers digitally connected to motor carriers and other companies within a TMS, users can quickly access their contracted rate carriers and capacity. When put into practice, TMS software will tell freight brokers where there is a shortage of drivers in their fleet.

Provide Better Customer Service

Freight brokers can provide better customer service with TMS software in place. TMS provides freight brokerage business owners/managers the ability to track shipments from beginning to end, which means they’ll be more informed when it comes time for clients to inquire about a shipment status or cost. TMS also makes data entry more easy and accurate.

TMS enterprise-level software will also allow freight brokers to provide better customer service by automatically printing labels and work orders for drivers, saving time and money.

Gain More Customers

A good TMS will bring more customers to freight brokers’ doors. Transportation Management Platforms are designed to help generate and manage relationships with customers and provide tools to boost customer acquisition. Transportation management software puts all customer-related data in one place, streamlining your workload.

Transport and logistics management boils down to getting more out of a transportation network design, load consolidation, multi-stop route optimization, enhanced procurement processes, and freight audit. Using a TMS system will streamline these processes, providing an excellent return on investment.

Logistics and transportation have been made easier with software that does the heavy lifting for them. The TMS will allow more users to be added, even as an organization grows and starts shipping more cargo.


When implemented correctly, a TMS system can provide a return on investment for freight brokers. TMS software allow more users to be added, even as an organization grows and starts shipping more cargo. TMS software puts all customer-related data in one place, streamlining your workload.

As a cloud-based TMS, Tai Software provides a powerful set of transportation management capabilities for freight brokers. The software’s AI-powered design integrates into a single TMS platform that covers all logistics management challenges. One key capability is shipment automation which improves efficiency across the board from simple tasks to critical processes like EDI integration. Request a free demo today!

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