What Exactly is BulkTMS and is a TMS worth it?

To our fault, we assumed most companies knew what a TMS (Transportation Management System) was. But if you don’t know what it is, how are you going to know if it’s helpful for your business? And how do you know if it’s for shippers, brokers, carriers, or all of the above? In this post, we’ll break down what a TMS is, who it’s for, and just as importantly, who it’s not for.

TMS systems have been around for a while. When I think of TMS systems, the first that comes to mind is McLeod Software. I can still remember driving down the interstate, even before I was in trucking, and seeing stickers on the back of semi-trailers that said, “Powered by McLeod Software.” Little did I know what this was, other than software to help the trucking company.

When I started working for Bartlett Grain in 2005, we managed all of our truck shipments with a clipboard and paper that floated around the merchandisers' desks. If a trucker called in asking if we had any loads, someone would grab the clipboard and go through the list of loads/lanes we had in alphabetical order. If the trucker was interested, you’d write their name down along with the number of loads they took and the agreed-upon rate. It was manual and cumbersome, trying to figure out who took what and where loads still needed to be covered. So, I took it upon myself to say there was a better way to use technology and automate this process.

We quickly moved the paper clipboard to a shared Excel drive, I think on the G drive, where multiple users could pull it up and use it. But it still had its drawbacks as you constantly had to refresh the sheet to make sure someone didn’t make an update. I knew there had to be a better way, but we didn’t have a large budget, if any, to spend. I ended up working with our in-house developers to create our own internal system, and it was a hit! This was basically my first shot at creating a TMS system to help manage our loads.

Since then, with the tech revolution and expansion of truck freight and freight brokerages, many other TMS systems have been created with specific purposes and functions. Some have been developed for shipping companies like SAP, others for medium and large brokerages like McLeod, and many more for smaller brokerages and trucking companies of all sizes. Some of these TMS systems are adaptable for both shippers and carriers, while others are not.

Here are some of the key functions of a TMS system, which may vary slightly depending on the specific software:

• Load and Truck Management:
  TMS software plays a key role in knowing what loads you have to move and what trucks are booked and where they are moving them.

• Dispatch:
  Most systems have robust functionality where you can easily send load confirmations to drivers via email, text, or an app.

• Tracking:
  Most systems have tracking built in with an app like ours (BulkTMS) or can integrate with ELD providers.

• Document Flow:
  This has been a game changer in the bulk industry. Most shipping companies now accept electronic documents (pre-COVID, they did not), allowing documents to flow digitally from the driver through the app, back into the system for easy settlement and invoicing. This has revolutionized how fast documents can be returned and, more importantly, how quickly trucking companies get paid, allowing shipping companies to settle faster as well.

• Invoicing:
  Most TMS systems include a built-in invoicing section or can easily integrate with accounting software like QuickBooks. This feature simplifies the billing process, ensuring that you can quickly and accurately bill your clients without needing separate systems.

• Integration with Other Platforms:
  TMS systems can connect directly with load boards like BulkLoads, allowing you to send loads that need to be covered with just a few clicks. This seamless integration means that your loads get viewed, booked, and covered faster, reducing the time spent on manual processes.

• Private Carrier Groups:
  While this might be unique to BulkTMS, within our system, you can build out private carrier groups and send load offers that can be accepted or negotiated. A great example of this was when a shipping company sent out 100 loads and had them all automatically booked and covered in less than a minute. Another customer shared that they reduced their invoicing time from 33 hours a week to just 3 hours using our system.

Many TMS systems come with an annual cost, and it’s important to be fully transparent about what to expect. While I can’t give specific pricing for all systems, here’s a general breakdown:

• Lower-level TMS systems:
  These can range from around $200 per month or $2,400 per year.

• Medium systems:
  Typically, these systems cost around $1,000 per month or $12,000 per year.

• Large, robust systems:
  These can cost $5,000 per month or up to $50,000 per year.

These prices may seem high, but it’s crucial to view them as an investment in your business. The efficiencies created and the ability to better manage your operations can more than justify the cost. Most of the successful trucking companies, freight brokerages, and shippers all use TMS systems to manage their freight.

Our goal with BulkTMS was to create an affordable TMS specifically built for bulk companies that don’t want to spend five figures on systems that aren’t really set up for bulk.

To sum it up, TMS systems help you stay organized and save you a significant amount of time—time that you can spend growing your business rather than getting bogged down in day-to-day tasks. They also free up more time for you to spend with your family or on activities you enjoy.

Our system, BulkTMS, was built and designed to serve all companies—whether you’re a shipper, broker, or carrier. What sets BulkTMS apart is that it was specifically created for bulk trucking companies, which is unique and rare in our industry.

Happy Bulk Trucking and God Bless,

Jared Flinn