‘A focus on execution leads to different requirements for TMS’

‘Transportation is more than just an expense’

Transportation and logistics processes require control, but what kind of control? TMS was developed as the ultimate application for this purpose, but in the past it focused primarily on planning and forecasting. Mark Vos, Principal Solutions Consultant at Manhattan Associates: “The focus is shifting toward execution, so that deliveries align precisely with the customer’s needs. This requires a single, unified application as the foundation for control.”

Changing market needs are rapidly prompting shippers in retail, wholesale, and manufacturing to select different types of TMS systems, according to Vos. “These business owners tend to look for a specific solution to a particular challenge. But can a TMS focused solely on planning integrate seamlessly with other applications, such as a WMS? The result of this narrow focus is that the desired level of control either fails to materialize or is extremely complex to achieve.”

Every component affects the final result

Furthermore, a TMS doesn’t mean the same thing to everyone. “Some see it as an order management application, while others think of planning, execution, freight invoice processing, visibility, or control. But you shouldn’t view those five elements in isolation. Each component is based on some form of planning, and every aspect influences the end result.” Selecting a TMS that isn’t capable of handling all five aspects isn’t wise in the first place, says Vos. “Now that execution is becoming more important because customers are demanding it, you need to link more processes together to gain insight and take swift action.”

According to Vos, the focus in the TMS selection process is usually on costs or achieving cost savings. He notes that when it comes to achieving cost savings, the emphasis is on planning and not enough on the other four aspects. “Those effects aren’t always immediately visible, either. Transportation, for example, isn’t just a cost center—it’s also a way to differentiate yourself, which may actually result in lower overall costs.”

Process order changes later

According to Vos, an integrated logistics application that includes both TMS and WMS offers many advantages. “The biggest advantage is that the various applications work together seamlessly. If a customer requests a last-minute change to an order, you can process it later than you could if you were relying on two separate systems. The customer will be pleased that their change can still be incorporated into the processes.”

A fully integrated logistics system, such as the one offered by Manhattan with ActiveWarehouse™ and ActiveTransportation™, also results in a reduced need for manpower. “Companies still spend a lot of energy on phone calls and emails instead of automating processes. Greater process integration and automation can save time, which in turn frees up more time for coordination with the customer—the execution phase. And if a warehouse manager can schedule their staff more effectively, that also yields significant benefits.”

Agentic AI

Seamlessly integrated applications pave the way for greater efficiency in the logistics chain. “That’s something you can only achieve if you dare to take a broader view of solutions. And I haven’t even mentioned Agentic AI yet. Our customers are really embracing it—both the standard agents and the ones they can build themselves. This lets you automate very simple tasks—the day-to-day actions a transportation planner performs. But the same principle applies here: you shouldn’t just want AI on top of a data lake. Speed is important, and that’s only possible if everything is part of the same process.”

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