A Guide to TMS Integration

What is a TMS integration & why is it important?

A seamless TMS integration is essential for shippers to consolidate crucial data across multiple transportation management partners to help them plan, execute, and optimize freight movements. By consolidating information into a single, centralized platform, this streamlined approach ensures real-time updates and boosts efficiency across operations, procurement, and finance. It also empowers shippers to harness the full potential of their data for greater supply chain optimization, including gaining a clear understanding of their fuel spend, linehaul rates, carriers, and transportation emissions. Executing a well-planned TMS integration is critical to avoid costly disruptions to operations and ensure data security.

What systems can be integrated with a TMS?

Enterprise Resource Planning (ERP), Warehouse Management Systems (WMS), Customer Relationship Management (CRM), third-party logistics providers (3PLs), and other strategic transportation technology partners can be integrated with a TMS. By integrating these systems with a TMS, shippers unlock operational efficiency, gain actionable insights, and enhance scalability—establishing a robust framework for sustained, long-term growth in an ever-evolving transportation landscape.

Here’s an in-depth look at the value each system delivers to shippers:

• ERP: Integrating a TMS with an ERP system allows for seamless communication between financial, inventory, and production data. This integration ensures that transportation decisions are aligned with broader business objectives, enabling more accurate forecasting and cost control. By syncing transportation data with ERP platforms, shippers can better manage budgets, reduce inefficiencies, and ensure data consistency across all departments.

• WMS: A TMS integrated with a WMS helps streamline the flow of goods within warehouses and ensures smooth coordination with transportation operations. This integration enables real-time visibility into inventory levels, order fulfillment, and shipping schedules, reducing delays and errors. The result is improved operational efficiency and enhanced customer satisfaction through faster and more reliable deliveries.

• CRM: When paired with a CRM system, a TMS can provide valuable insights for enhancing the customer experience. Shippers can track shipments, communicate delivery updates, and proactively address issues, building stronger relationships with their clients. This integration bridges the gap between supply chain operations and client-facing activities, creating a more unified and customer-centric approach.

• 3PL: Integration with 3PL systems allows companies to leverage external expertise for logistics while maintaining control over transportation management. This synergy keeps data synchronized, enabling businesses to monitor outsourced logistics functions, track shipments in real time, and improve overall supply chain responsiveness. A TMS-3PL integration is essential for ensuring flexibility and adaptability in an increasingly complex logistics landscape.

• Strategic transportation partners: Partnering with strategic transportation partners can optimize transportation strategies through data-driven decision-making. These partners leverage market insights, advanced analytics, and innovative technology to reduce costs, improve fuel efficiency, and enhance overall logistics performance. Collaborating with these experts ensures that shippers remain competitive and agile in a rapidly evolving transportation environment.

What is the difference between a standalone TMS and an integrated TMS?

A standalone TMS is an off-the-shelf solution you can purchase and operate independently. In contrast, an integrated, cloud-based TMS connects with systems like WMS to create a seamless network across departments.

When choosing between a standalone TMS and an integrated, cloud-based TMS, shippers must carefully evaluate their operational needs, technological capabilities, and long-term business goals. A standalone TMS may be suitable for smaller organizations or those with simpler supply chain networks, as it often requires less initial investment and provides a quick implementation.

On the other hand, an integrated, cloud-based TMS offers robust connectivity, empowering shippers to achieve end-to-end visibility and improve decision-making. This level of integration is particularly beneficial for shippers operating in complex, high-volume supply chains.

Shippers should also factor in the scalability of their chosen solution, ensuring it can evolve alongside their growth. Ultimately, the decision should align with the organization’s priorities, whether those include cost savings, process automation, or enhanced collaboration within the supply chain ecosystem.

Benefits & challenges of TMS integration

What are the benefits of TMS integration?

Integrating an ERP, WMS, CRM, 3PL, or strategic transportation partner into your TMS unites all systems on a single platform, driving efficiency across operations. This seamless connection enables automated workflows between departments, reducing manual tasks and minimizing errors. Additionally, a unified "single source of truth" system lays the groundwork for business scalability, simplifying the onboarding of new partners and enabling quicker, more informed decision-making. With these advantages, organizations can prioritize innovation and long-term growth while maintaining a flexible, streamlined operational framework.

What are common challenges in TMS integration?

Integrating a TMS can come with its own set of challenges, requiring careful planning to ensure success. A seamless flow of data is essential during the integration process, as any disruptions can disrupt workflows, hinder operations, and lead to costly setbacks. Cybersecurity is another major concern, as protecting sensitive transportation data from threats is essential to maintaining trust and operational stability. For organizations with limited IT resources, managing complex data systems can feel overwhelming, increasing the need for solutions that simplify processes and minimize reliance on specialized expertise. By addressing these concerns before executing a TMS integration, shippers can unlock the full potential of their transportation network data and drive stronger results.

Common use cases for TMS integration

What industries benefit from a TMS integration?

A TMS is a powerful tool for shippers across industries–including paper and packaging, consumer packaged goods (CPG), food and beverage, durable goods, and retail—to gain value and streamline their supply chain operations. Every industry faces unique transportation challenges, and a TMS provides the visibility needed to address them with precision and efficiency.

• Paper and packaging: For complex networks of suppliers, distributors, and customers, a TMS streamlines these processes and reduces costs by uncovering freight efficiencies for shipping materials and finished goods.

• CPG: For high-demand, fast-moving goods, a TMS improves route optimization and inventory visibility to meet tight deadlines and control logistics costs.

• Food and beverage: For temperature-sensitive shipping and on-time deliveries, a TMS gives visibility to shipments to reduce waste and create a roadmap for continuous improvement.

• Durable goods: For large or specialty items, a TMS provides enhanced tracking and efficiency while managing multiple transportation modes and providers.

• Retail: For effectively transporting goods to meet consumer demand, a TMS can provide real-time visibility to manage inventory levels better.

Pairing a TMS with a strategic transportation partner like Breakthrough empowers shippers to unlock the full potential of a TMS. Breakthrough is a leading provider of sustainable fuel and freight solutions for shippers to uncover freight optimizations and create actionable, data-driven strategies.

How does TMS integration support shipment delivery?

By assembling the right technology stack of ERPs, WMSs, CRMs, and third-party logistics and transportation partners into your TMS, you can enhance your visibility to load-level movements, enabling real-time updates, route optimization, and customer notifications. This level of transparency is vital in today's competitive market, where customers expect accurate and timely delivery updates. By leveraging transportation data from multiple systems in one platform, shippers can enhance their customer service capabilities and improve overall satisfaction. Additionally, organizations can reduce costs by optimizing routes and minimizing empty miles.

TMS integration partnership questions

How do vendors typically handle updates or changes in integrated systems?

Vendors typically handle updates or changes in integrated systems by implementing version upgrades, ensuring compatibility with existing workflows, and providing clear communication to minimize disruptions.

How does TMS integration handle sensitive customer data?

Best-in-class TMS integration providers use industry-standard authentication and encryption methods, such as SSL/TLS protocols and multi-factor authentication, to ensure secure communication channels. These measures protect sensitive data during the transfer, safeguarding it from unauthorized access, cyber threats, and potential breaches.

What ongoing support is needed after TMS integration?

Following a TMS integration, consistent monitoring is critical for shippers to maintain seamless connectivity and proactively address technical needs, including software updates and patches. This ensures uninterrupted performance and maximizes the efficiency of their transportation operations.

Future trends in TMS integration

What are the emerging trends in TMS integration?

• AI-Powered load optimization: Artificial intelligence is transforming load planning by analyzing fuel costs and linehaul rates, enabling shippers to make smarter financial decisions and select carriers more efficiently.

• Predictive logistics: AI-driven analytics are being leveraged to anticipate logistical challenges, helping shippers stay ahead of potential disruptions.

• Blockchain for transparency: Blockchain technology is enhancing supply chain transparency, providing secure, tamper-proof records for better accountability.

• IoT integration: IoT devices are revolutionizing real-time asset tracking, from telematics that monitor vehicle performance to GPS data for precise location tracking.

These advancements are redefining how TMSs operate, enabling shippers and carriers to achieve greater efficiency, transparency, and adaptability.

How will TMS integration evolve with technology?

Artificial intelligence is set to significantly influence TMS integrations, emphasizing the importance of API-based connectivity for seamless performance. For instance, Breakthrough’s TMS-agnostic approach guarantees seamless compatibility, exemplified by its successful integration with Barilla’s TMS, e2open.

Shippers can unlock faster decision-making, improved security, and greater efficiency by utilizing a TMS with proven expertise in integrating with various ERPs, WMSs, CRMs, and third-party logistics and transportation partners. This not only streamlines operations and ensures more reliable processes but also boosts profitability, adding value to the bottom line.

Discover how Breakthrough can seamlessly integrate with your TMS to optimize your supply chain and deliver measurable results. Explore our innovative sustainable fuel and freight solutions today.