Transportation management is the process of coordinating and optimizing the movement of goods, materials, and products from one location to another. It involves the planning, execution, and control of the transportation of goods in order to meet the needs of customers and businesses.
Transportation management includes a variety of activities such as:
Planning and scheduling the most efficient routes for transportation
Coordinating with suppliers and carriers to ensure timely delivery of goods
Selecting the most cost-effective mode of transportation (e.g. truck, rail, air, ocean)
Managing and tracking freight and inventory during transit
Negotiating rates and contracts with carriers
Managing compliance with regulations and laws related to transportation
Monitor and measure performance of the transportation process
Transportation management systems (TMS) are widely used in logistics to manage these activities. These systems provide a centralized platform for planning, execution and monitoring of the transportation process, and also integrate with other systems such as warehouse management systems (WMS) and enterprise resource planning (ERP) systems.
Effective transportation management can help companies reduce costs, improve customer service, and increase efficiency throughout the supply chain
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