Reasons you need to integrate your WMS and TMS

For the most part, warehouse management systems (WMS) and transportation management systems (TMS) remain separate.

One is meant to control and facilitate the oversight of your internal and lateral storage facilities. The other is meant to handle your fleet and all elements connected to it.

But like your operations, in general, there’s something to be said for promoting interoperability between these two platforms. After doing so, you'll gain access to new, more adaptable workflows and fresh management opportunities.

Not to mention, there are certain cost reductions as well as operations and process improvements that benefit not only your business but also your customers.

Ultimately, you gain a little more control over your entire network, which makes for incredibly smooth and efficient operations — meaning customers get their products or services faster.

Certainly, any manufacturer looking to increase operational efficiency will start by connecting these two technologies.

What is a TMS?

A transport management system is software that helps businesses plan, execute, and optimize logistics and transportation processes. Common TMS features include route optimization, freight tracking, document management, order management, tendering, and load planning.

TMS integration involves combining your TMS with another software system, typically a WMS or ERP, to make it easier to share data and coordinate between warehouse and transportation operations.

Benefits of WMS and TMS integration

Generally, when technologies communicate with one another, the resulting data can be used as value-added and actionable intelligence. It’s akin to sifting through raw digital content and extracting helpful insights.

You learn more, you can see more, meaning you can plan accordingly — which is exactly where predictive analytics comes from.

The same is true for integrating WMS and TMS systems. The effective data sharing between the two platforms allows for clear and defined information about manufacturing, warehouse processes, and, of course, transportation or distribution.

You can better plan the movement of goods across your supply chain, not just within the confines of your warehouse.

It sounds great, right? But how do you do it? 

Just like there are service providers for either platform, there are also service providers that offer solutions and tools to help merge the two technologies.

Consider partnering with service providers that offer solutions and tools to merge these technologies. Third-party logistics providers (3PLs) and proprietary internal systems can be configured to share and communicate data effectively.

Customers benefit the most from TMS integration

WMS TMS integration means faster and tighter delivery windows as well as reduced transportation costs. Not to mention, you can react faster and more accurately to certain events when you have your entire supply system aligned.

It’s this additional measure of oversight that affords nuanced information, allowing for more informed and successful decisions.

For example, with the systems separate, you might be able to discern that a certain number of orders are going out on a particular transport or truck. You can pick what goes out and what stays behind.

But you don’t know how they will be staged, how much space is available, or whether or not the truck is ready.

When the systems are combined, however, you can see precisely how each truck is packed and set up. This knowledge allows you to more accurately stage outbound goods and plan accordingly within your warehouse, saving space by proxy.

You can even make more dynamic adjustments to increase the number of goods moved by your fleet because you can see just how much room is left for each trailer or truck.

This could mean last-minute send-offs for certain products and goods, satisfying your customers who are looking to receive their orders as quickly as possible.

Advantages of WMS and TMS integration

It’s likely that you’re taking every measure to maximize the warehouse space you have available, most commonly through pallet-racking systems or similar configurations. Make sure you are keeping your warehouse’s costs per square foot low.

Check out our free WMS features and requirements guide to create your WMS software requirements list

Your finance department can help you determine if your warehouse inventory is impacting your bottom line. Maximize storage with vertical storage solutions and warehouse management systems for healthier and more reliable inventory stores.

Integrating WMS with your outbound solutions (such as your fleet) can have an even greater impact on the success of your supply chain operations.

Additional benefits of aligning WMS and TMS include:

• Constraint-oriented planning to adapt to customer expectations and regulatory changes.
• Iterative optimization and continuous improvement across all processes.
• Improved labor scheduling and employee oversight.
• Efficient warehouse organization, leading to informed movements with reduced risk.
• Optimized fleet utilization, including fuel efficiency and driver wage management.

In the end, merging your WMS and TMS systems seems to be the best option for almost any manufacturer that utilizes these tools.