What is a transportation management system (TMS)?

A transportation management system (TMS) is a crucial software solution designed specifically to help organizations manage and optimize their transportation operations. It streamlines the planning and coordination of the movement of goods, allowing for enhanced efficiency in shipping and logistics. With a TMS, users can track shipments, manage carrier relationships, analyze freight costs, and optimize routes, ultimately facilitating better decision-making and cost savings in transportation processes. This makes it an essential tool in supply chain management, ensuring that transportation is conducted in the most effective and efficient manner possible.

The other options don't align with the primary function of a TMS. Managing employee payroll pertains to human resources and finance, tracking promotional pricing relates to marketing strategies, and evaluating supplier contracts is focused on procurement and supplier management. Each of these areas is vital for business operations but does not encompass the transportation management aspect that a TMS specifically addresses.