A TMS typically acts as an intermediary between an ERP or legacy order processing and warehouse/distribution module.
In this setup, the TMS Planning Module evaluates both inbound (procurement) and outbound (shipping) orders, providing the user with suggested routing solutions.
The user reviews these suggestions and selects the most reasonable option, which is then passed to the transportation provider analysis module.
Once the optimal option is chosen, an electronic load tendering and track/trace system is used to execute the shipment through the selected carrier.
While ERP providers are moving to improve their on-premises transportation management offerings by adding TMS modules to their existing, implemented base, the advent of Software-as-a-Service or "SaaS" delivery resulted in a surge of emerging TMS providers.