What Is a Cloud-Based Transportation Management System (TMS)?

A Transportation Management System (TMS) may be the solution that your trucking and freight company needs to optimize operations and take success to the next level — but we know that many of you have questions about how Transportation Management Systems work. With the advantage of cloud-based technology, trucking companies can benefit even more, but many still want to know — what is a cloud-based Transportation Management System (TMS)? We may be able to help answer your questions at TransPlus. 

Top 5 Benefits of a Cloud-Based Transportation Management System

At its foundation — a cloud-based system means the TMS software and your company's data are hosted on remote servers managed by the provider, rather than on physical servers located within your own office. Your access to the system is secured via the internet through a web browser or a dedicated TMS application.

This Software-as-a-Service (SaaS) model provides a variety of advantages over traditional on-premise software solutions that include increased accessibility, reduced costs, access to real-time data, easy scalability, and enhanced security. These benefits enable trucking and freight companies to streamline operations, improve decision-making, and boost the overall efficiency of their operations.

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1. Increased Accessibility

A cloud-based TMS minimizes the limitations of office-based software platforms. Authorized users can securely log in and access the full functionality of the system from anywhere with an internet connection — whether it is in the office, at home, or even on the road via a mobile connection. This 24/7 accessibility helps ensure that dispatchers, managers, sales teams, and even drivers through portals or mobile apps like TransPlus Connect can stay connected and informed, facilitating improved communication.

2. Reduced Costs

When your company implements a cloud-based TMS platform, it has the potential to significantly lower upfront and recurring IT expenses compared to more traditional systems. With a cloud-based platform, there is no need to purchase, house, and maintain expensive server hardware, reducing expenses and costs associated with server maintenance, upgrades, and internal IT support. Many cloud-based TMS solutions operate on a predictable subscription model, making budgeting simpler.

3. Access to Real-Time Data

Cloud-based systems house data in a centralized location, which means that updates made by any user — like a dispatcher updating a load status or a driver confirming a delivery via a mobile app — are reflected in real-time across the platform for all relevant users with the right access. This helps provide a real-time view of operations, from truck locations with ELD and GPS integrations to load statuses and profit margins. Access to current and accurate data allows businesses to make faster, more informed decisions for routing, scheduling, and customer communication.

4. Easily Scalable

Trucking operations can fluctuate based on seasonal or economic demands and on the growth of your business. A key benefit of a cloud-based TMS platform is that they are easily scalable and they allow companies to easily add or remove user licenses, features, or capacity as needed without major changes to the software or the system. This level of flexibility ensures you only pay for the resources you need at a given time, making it easy to adapt the system to your evolving needs.

5. Enhanced Security

High-quality TMS providers that use a cloud-based platform invest heavily in robust security measures for their data centers, which can often exceed what individual trucking companies can implement on their own. This includes physical security, network security, data encryption, regular data backups, data recovery protocols, and adherence to industry compliance standards. Entrusting your data to a specialized cloud-based TMS provider often results in a more secure environment for your operational data.

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READ MORE: How Technology Will Benefit Trucking Companies in 2025

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What is a cloud-based Transportation Management System? This overview will highlight the benefits provided by a cloud-based TMS that include reduced costs, accessibility, and scalability. Contact the TransPlus Team today to learn more about our cloud-based TransPlus TMS platform firsthand with a demo!

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