FMS vs. TMS: What Logistics Technology Is Best for Your Business?

If your business utilizes vehicles, logistics technology like FMS or TMS can do wonders to
improve your operations. But which one is right for your business?

This article gives a detailed overview of both systems and their differences, so you can make an informed decision.

What Is FMS?

FMS (fleet management software) technology is more straightforward than TMS and helps with vehicle maintenance and monitoring. This system focuses more on vehicle management and tracking than delivery metrics and route efficiency.

An FMS provides constant information directly from the vehicles, including location,
performance, and security. It collects this data via a GPS device or OBD II dongle using a 2G or 3G network.

Some fleet management systems are more advanced than others. But a few functions are the best

FMS technology offers include:

● Vehicle tracking with physical locations
● Automatic vehicle diagnostics
● Manages part replacement and a vehicle lifecycle
● Improves vehicle security
● Immobilizes vehicles if stolen

● Geo-fencing
● Real-time data parameters tracking
● Monitors battery levels
● Monitors tax and insurance deadlines and sends alerts

Essentially, an FMS focuses on vehicle maintenance, safety, and monitoring. Simple things like oil changes, tire rotations, or even keeping the gas tank full can fall by the wayside when a business has to manage many vehicles. If these things go unchecked, productivity decreases and a company can struggle.

What Is TMS?

TMS stands for the transportation management system. This logistics technology focuses on the status of deliveries, route planning, and automated task assignments. A TMS system aims to optimize the delivery process and monitor the success or failure of pickups, deliveries, and similar tasks.

This technology can make routes more efficient and enhance communication between drivers and a central office or management. It also helps record important data and metrics to help businesses scale or improve services.

Some functions TMS technology offers include:

● Route and timeline planning
● Route optimization
● Automated dispatch to drivers
● Automatic shipping documentation
● Vehicle and driver tracking
● Electronic proof of delivery
● Automated key performance indicator reports
● Automated administrative work (billing, invoicing, payroll, etc.)

Some solutions, such as Oracle Transportation Management, offer advanced functionality for complete end-to-end management of all transportation functions in your business.

What is Oracle Transportation Management? It’s a leading TMS that offers extensive features such as 3D visibility, transportation network modeling, and rate maintenance, as well as seamless integration with other Oracle technologies to connect every facet of your business.

The Oracle Transportation Management system provides superb metrics and insightful data to help businesses make informed decisions concerning scaling, productivity, and improvements.

Key Differences Between FMS and TMS

Below are the differences between the two logistics systems to consider.

1) Scope and Focus

The primary difference between fleet management systems and transportation management systems is that fleet management systems focus on managing fleet operations. At the same time, a TMS is broader in scope, dealing with the strategic and operational view of moving goods and optimizing business processes that can impact overhead costs.

TMS also can handle oversight of shipments outsourced to third-party carriers and connects with supply chain partners to increase overall supply chain visibility and monitor and plan for potential disruptions.

2) Delivery Optimization and Route Planning

An FMS helps with delivery optimization because it keeps vehicles serviced and in decent condition. However, TMS offers better delivery optimization, helping to stay on top of delivery duration and movements in real time.

For example, a TMS will expertly and quickly plan a driver’s route to minimize fuel waste and vehicle wear and tear while making the deliveries as soon as possible.

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It also helps ensure deliveries are successful using electronic proof of delivery and real-time delivery tracking.

3) Vehicle Maintenance

A TMS is not focused on more granular management tasks, such as keeping vehicles in tip-top shape. (Instead, a TMS would focus more on how current maintenance procedures are working and how they’re impacting the bottom line.)

Keeping one or two cars in good working order, with fresh oil, full tires, and functional brakes is easy. But when dealing with many vehicles, whether 10 or 100, those basic tasks can be challenging to track and manage.

An FMS makes it easy to keep vehicle servicing on schedule to reduce the likelihood of
decreased performance or unexpected breakdowns. Plus, it’s important to consider drivers’ safety, as operating a neglected vehicle is dangerous.

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How To Choose the Right Technology

Businesses struggling with delivery times and productivity will benefit more from a TMS. But large companies with many vehicles will benefit more from monitoring and maintenance management.

Consider what areas your business is struggling in and choose a logistics system accordingly.

An important thing to note is that an FMS and TMS do not need to be mutually exclusive. Large businesses that want to optimize both vehicle maintenance and operational tasks like planning and execution.

Not every business needs both, but having the two systems work together can make things more streamlined and efficient.