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  7. Transportation Management System
Technology

Transportation Management System(TMS)

Definition

Enterprise software used by shippers, logistics providers, and railroads to plan, execute, track, and optimize freight transportation. In the rail context, a TMS manages rate procurement, shipment tendering, car ordering, tracking, freight bill auditing, and performance analytics. Modern TMS platforms integrate with railroad EDI systems and provide real-time visibility.

Related Terms

Electronic Data Interchange(EDI)

The computer-to-computer exchange of standardized business documents between railroads, shippers, and logistics providers using ANSI X12 transaction sets. Common rail EDI transactions include the 404 (rail shipment), 410 (freight invoice), 417 (rate inquiry), and 418 (rate reply). EDI is the foundational data exchange standard for the North American rail industry.

Predictive ETA

The use of machine learning models, historical performance data, real-time train location, and network condition information to generate more accurate arrival time predictions for railcars and intermodal shipments. Predictive ETA models outperform schedule-based estimates by accounting for actual network conditions and train plan changes. Improved ETA accuracy enables better inventory management and customer service.

Car Trace

The process of locating a specific railcar by querying the railroad's information system or the industry-wide Railinc car location network. Car traces provide current location, status, and estimated arrival information. Shippers use car traces to plan unloading schedules and manage inventory.

Third-Party Logistics Provider(3PL)

A company that provides outsourced logistics and supply chain management services including transportation procurement, freight brokerage, warehousing, and distribution on behalf of shippers. 3PLs frequently negotiate rail contracts and manage intermodal moves for their clients. They add value through scale, expertise, and technology platforms.

Rail Rate Negotiation

The process by which a shipper and railroad negotiate the terms of a transportation contract, including rates, volume commitments, service standards, and car supply provisions. Effective negotiation requires understanding market alternatives, the railroad's cost structure, and the shipper's volume and service needs. The Staggers Act enables these confidential bilateral agreements.

More in Technology

Wayside DetectionGPS TrackingEDI 417 Rail Carrier Rate InquiryEDI 404 Rail ShipmentRailincPositive Train Control