TMS and Optimization Solvers: Differences and Complementarities
Transportation Management Systems (TMS)
The use of TMS is widespread among companies and allows for the management and organization of daily transportation operations, such as shipment and routing management, real-time tracking and execution (track and trace, ETA, proof-of-delivery), fleet management, and invoicing.
While essential for ensuring smooth transport execution, TMS lacks decision-support functionalities to guarantee optimal transportation planning. It represents an initial step in digitizing processes but requires a complementary module to make the best decisions regarding dispatching, scheduling, and operations planning.
Transportation Optimization Solvers
As operational performance and resource rationalization become critical across industries, optimization solver providers are increasingly sought after for advanced solutions in planning and routing optimization.
Relying on decision-making AI* and prescriptive analytics, this powerful decision-support tool determines the best allocation of transportation operations to resources and their scheduling across strategic, tactical, and operational levels.
It acts as the intelligent module that enhances decision-making and TMS capabilities with advanced optimization features. Through native API integration, the combination of these tools provides a seamless, end-to-end user experience, significantly reducing transportation costs and associated CO2 emissions.
An optimization solver can also be used in « standalone » via a WebApp, especially for strategic and tactical transportation plan optimization.
While each tool has its defined functional scope, the complementarity between these two solutions is particularly valuable for users aiming to boost their transportation performance and improve their quality of service.