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A TMS typically "sits" between a warehouse/distribution module and an ERP or legacy order processing module. A typical situation would involve the Transportation management system Planning Module evaluating both inbound (procurement) and outgoing (shipping) orders and providing the user with a number of suggested routing options. The transportation provider analysis programme selects the best mode and least expensive provider after the user assesses these alternatives for reasonableness.
The technology often generates electronic load tendering and track/trace when the best supplier is chosen to carry out the optimum shipment with the chosen carrier, and later to assist freight audit and payment (settlement process). Links back to ERP systems are frequent, as are secondary links to ERP-related Warehouse Management System (WMS) applications.
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https://cmitoc.blogspot.com/2022/08/transportation-management-system.html