If you're running a freight forwarding operation on spreadsheets, juggling emails across multiple carriers, or spending hours reconciling shipments at month-end, you've likely heard that a TMS could solve your problems.
But what exactly is a TMS, and is it right for your business?
A Transportation Management System (TMS) is software that helps logistics companies plan, execute, and optimize the movement of goods. For freight forwarders specifically, a TMS centralizes your entire operation—from quoting and booking to tracking, documentation, and invoicing—in one platform.
Here's what we've learned from working with 1,000+ freight forwarders: The difference between a forwarder stuck at 100 shipments per month and one handling 200+ often comes down to their technology stack. As one customer put it after trying seven different systems:
"GoFreight is very user friendly, and I am quick in the system." — Janko Wille, CEO, Allround Forwarding Midwest
This guide covers everything you need to know about TMS software: what it does, who needs it, how to evaluate options, and whether the investment makes sense for your operation.
What You'll Learn:
TMS stands for Transportation Management System.
It's a category of software designed to help companies manage the logistics of moving freight from origin to destination. While the term originated in the enterprise shipping world (think large manufacturers and retailers managing their own freight), TMS software has evolved to serve different segments of the logistics industry.
For freight forwarders and NVOCCs, a TMS typically includes:
Related Terms:
Looking to compare TMS options? See our Best TMS Software 2026 guide.
A TMS acts as the central nervous system of your freight operation, connecting all the moving pieces that would otherwise require separate systems, spreadsheets, and manual coordination.
1. Quote Management When a customer requests a rate, a TMS allows you to quickly build quotes by pulling from stored carrier rates, applying margins, and generating professional quotations. The best systems let you convert accepted quotes directly to bookings—no re-entering information.
"Not loving process from quote→shipment with reentering information" — Common pain point we hear from forwarders on legacy systems
2. Booking & Shipment Creation Once a quote is accepted, a TMS creates the shipment record with all relevant details pre-populated. This includes:
3. Execution & Tracking During shipment execution, a TMS:
Need ISF filing capabilities? Learn how to file ISF with GoFreight.
4. Financial Close-Out After delivery, a TMS handles:
Modern TMS platforms connect to:
Most modern TMS solutions are cloud-based, meaning:
"Switching to GoFreight was a game-changer... I save at least 50% of my time." — Jason Hsu, Owner, Whale US
Not every logistics operation needs a TMS. Here's how to know if you've outgrown your current approach.
1. You're Managing Shipments in Spreadsheets If your team maintains Excel files for shipment tracking, rate management, or customer lists, you're likely spending hours on work that could be automated.
2. You're Re-Entering Data Multiple Times Typing the same information into your quoting tool, booking system, and accounting software isn't just inefficient—it introduces errors.
3. Your Team Can't Find Information Quickly When a customer calls about a shipment, can you pull up the status in seconds? If your team spends minutes digging through emails or files, visibility is a problem.
4. Month-End Close Takes Forever If reconciling shipments, verifying charges, and generating financial reports consumes days of work each month, your systems aren't working together.
5. You're Missing Opportunities Are you losing quotes because you can't respond fast enough? Are customers leaving because competitors offer better tracking visibility?
Based on our experience with 1,000+ forwarders, TMS adoption typically makes sense when:
| Company Profile | TMS Fit |
|---|---|
| 1-5 employees, <50 shipments/month | Good fit — efficiency gains free up time for growth |
| 5-25 employees, 100-300 shipments/month | Strong fit — efficiency gains significant |
| 25-100 employees, 300+ shipments/month | Critical — can't scale without one |
| 100+ employees | Required; question is which platform |
Small operation? See Best TMS for Small Business for right-sized options.
A TMS may not be urgent if:
However, if you've tried multiple systems without success, the issue may be fit rather than timing:
"I tried 7 different systems before GoFreight. They were all either too complicated or didn't understand freight forwarding." — Janko Wille, CEO, Allround Forwarding Midwest
When evaluating TMS options for freight forwarding, focus on these core capabilities.
The foundation of any TMS. Look for:
Why it matters: A forwarder handling ocean imports should be able to create a shipment, generate ISF filing, track container movements, and close out financials in one workflow.
Manual rate lookups and Excel-based quoting slow you down. A good TMS offers:
"We used to handle 100 shipments a month, and suddenly, we were managing 200." — Joan Chou, VP, Headwin Global Logistics
Your customers expect Amazon-like tracking. TMS features include:
This is where many TMS platforms fall short. Essential capabilities:
"GoFreight to me is a live system... with GoFreight, we turned financial complexity into clarity." — Jeff Lee, Sales Manager, UCM
For US-based forwarders, look for:
Learn more: Customs Brokerage Software Guide
The more carriers connected, the less manual work:
Data-driven decisions require:
| Feature | Basic TMS | Mid-Market TMS | Enterprise TMS |
|---|---|---|---|
| Shipment management | ✓ | ✓ | ✓ |
| Rate management | Limited | ✓ | ✓ |
| Customer portal | — | ✓ | ✓ |
| QuickBooks integration | — | ✓ | Limited |
| ISF/Customs | — | ✓ | ✓ |
| Implementation time | Weeks | 4-8 weeks | 6-12 months |
| Typical cost | $50-150/user | $100-300/user | $500-2000+/user |
The ROI of a TMS comes from multiple sources. Here's what our customers report.
The most immediate benefit is eliminating manual work:
"Switching to GoFreight was a game-changer... I save at least 50% of my time." — Jason Hsu, Owner, Whale US
Where time is saved:
Without adding headcount, forwarders can handle more volume:
"We used to handle 100 shipments a month, and suddenly, we were managing 200." — Joan Chou, VP, Headwin Global Logistics
This scalability is critical for growing operations. The right TMS removes the ceiling on what your current team can accomplish.
Manual processes introduce mistakes. TMS benefits include:
"53% decrease in demurrage costs" — UCM, after implementing GoFreight
In a competitive market, customer experience differentiates:
Know your business performance in real-time:
"The user interface of GoFreight transformed how we viewed our data." — Joseph Park, Founder, Seamax Freight International
A TMS positions you for growth:
| Metric | Before TMS | After TMS | Annual Value |
|---|---|---|---|
| Hours/week on manual entry | 20 hrs | 5 hrs | $39,000* |
| Quote response time | 24 hrs | 2 hrs | More wins |
| Shipment capacity | 100/month | 200/month | 2x revenue |
| Month-end close | 5 days | 1 day | $8,000* |
| Demurrage costs | $X | 53% less | Varies |
With dozens of TMS options available, here's how to evaluate.
Before looking at demos, document:
Different TMS platforms target different company sizes:
| Your Profile | Best Fit |
|---|---|
| Startup/small (1-10 employees) | Mid-market TMS with growth runway |
| Growth stage (10-50 employees) | Sweet spot for most modern TMS |
| Established (50-100+ employees) | Mid-market or enterprise, depending on complexity |
| Global enterprise (500+ employees) | Enterprise TMS (CargoWise, etc.) |
Comparing enterprise options? See GoFreight vs CargoWise.
Look beyond the subscription price:
"I'm scared to death every time I see a bill from CargoWise." — Branch Manager at a mid-size US forwarder (before switching)
Enterprise systems can take 6-12 months to implement. Modern mid-market platforms typically deploy in 4-8 weeks.
Questions to ask:
Ask for customers similar to your size and use case. Key questions:
Ready to evaluate? Read our TMS Software Buyer's Guide.
Implementation doesn't have to be painful. Here's a realistic timeline for mid-market forwarders.
Week 1-2: Setup & Configuration
Week 2-4: Data Migration
Week 3-5: Training
Week 5-8: Go-Live & Support
What makes implementation smooth:
"Onboarding was simple, and the platform is easy to use." — Dipty Jardosh, Operations Director, GC Logistics
What causes delays:
What is a TMS in logistics? A Transportation Management System (TMS) is software that helps logistics companies plan, execute, and optimize freight movements. For freight forwarders, it centralizes quoting, booking, tracking, documentation, and accounting in one platform.
What does TMS stand for? TMS stands for Transportation Management System. Related terms include FMS (Freight Management System) and FOS (Freight Operating System).
How much does TMS software cost? TMS pricing varies widely:
What's the difference between TMS and ERP? ERP (Enterprise Resource Planning) is broader software covering all business functions (HR, procurement, finance). TMS specifically manages transportation and logistics operations. Many forwarders use a TMS integrated with accounting software rather than a full ERP.
How long does TMS implementation take? Implementation timelines vary by platform:
Is TMS software worth it for small freight forwarders? For forwarders handling 100+ shipments monthly with 5+ employees, a TMS typically delivers positive ROI through time savings, reduced errors, and increased capacity. Smaller operations may find basic tools sufficient until they hit growth constraints.
What features should I look for in TMS for freight forwarding? Essential features: shipment management, rate quoting, customer portal, accounting integration (especially QuickBooks), customs/compliance tools, and carrier connectivity. Prioritize features that address your specific pain points.
A Transportation Management System can transform your freight forwarding operation—but only if it fits your needs, budget, and growth trajectory.
A TMS makes sense if:
The best TMS for freight forwarders:
"GoFreight is my first choice because it's a perfect package." — Rebecca Zhang, CEO, TG Cargo Inc.
The question isn't whether you need better technology—it's whether now is the right time to invest. If you're at an operational inflection point, the right TMS becomes the foundation for your next phase of growth.
Ready to see if a TMS fits your operation? Request a GoFreight Demo →