Difference Between DMS and TMS (And Why You May Need Both)

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These days, the automotive industry moves faster than ever; with the normalization of online shopping, increased reliance on residential deliveries, and fast sales combined with low inventory levels and supply chain issues, it’s no wonder that companies have trouble keeping up.

And in order to stay competitive, dealerships need to use all of the tools at their disposal. Through the use of modern technology, your dealership should be able to increase its rate of efficiency and task completion speed.

But because there are so many different types of tools available to dealerships nowadays, trying to tell them all apart from each other can sometimes be a difficult task. Today we’ll be discussing both DMS and TMS solutions, how they are different, and share why we believe your business may need both.

What is a DMS?

A DMS stands for Dealership Management System. It is a software solution that helps automotive dealerships manage their daily business operations. A DMS typically includes modules for accounting, vehicle inventory, customer relationship management (CRM), and more.

What is a TMS?

A TMS stands for Transportation Management System. It is a software solution that helps businesses plan, execute, and track shipments. Dealerships that are also involved with auto transport require a TMS solution, as it allows them to properly optimize their shipping routes, choose the best carrier for each shipment, and track shipments in real-time. 

Additionally, it can be seamlessly integrated with CRM solutions, accounting software, and other great tools for your auto transport business.

Biggest Differences Between DMS and TMS

While both tools are management systems at their core, DMS and TMS solutions serve entirely different purposes from each other. 

TMS solutions are specifically used for shipping vehicles and offer an all-in-one solution for tracking orders, managing shipments, dealing with car haulers, and other auto transport-related functions. It’s a great tool for everything related to transport management, but can also serve as a great information highway, by integrating together with all of your other favorite tools and systems. 

A DMS, on the other hand, is used for other business-related tasks and functions of a dealership. A DMS solution offers great inventory insights and customer management, while a TMS is best used for all things related to the auto transport industry.

Major Uses of a DMS

As the name suggests, a DMS solution is used by a dealership primarily. Dealership management systems are used to manage all aspects of an automotive dealership’s business, from accounting and vehicle inventory to customer relationships. A DMS can help a dealership run more efficiently and improve customer satisfaction.

Major Uses of a TMS

Transportation management systems are used to plan, execute, and track shipments of vehicles, though unlike a DMS auto transporters outside of dealers use them. Used by dealers, auctioneers, brokers, and car haulers, a TMS is a popular tool used by auto transport companies. 

With a TMS, businesses can better optimize their shipping routes, choose the best carrier for shipments, and directly communicate with carriers. There are also additional features that Super Dispatch’s Shipper TMS solution is capable of as well, such as its exclusive ability to track orders in real-time using GPS tracking

Do You Need Both?

If you’re in the automotive business, you may need both a DMS and TMS. While a DMS is necessary to manage the day-to-day operations of your dealership, a TMS serves as the key to taking your business to the next level. 

In order to keep up with your competitors who offer additional shipping services, then a TMS may be required in order to match rivals’ offerings. So while a DMS and TMS serve entirely different purposes, they are equally important for dealerships looking to ship their vehicles.

Try Super Dispatch Shipper TMS

If a TMS sounds like something that your dealership could use, then consider trying Super Dispatch. Our TMS solution allows dealerships to more efficiently ship cars by fully digitizing the processes of filing paperwork and reports, managing carriers, tracking orders in real-time, and much more. Our solution can fully transform your business, and allow you to ship cars faster than ever before. Request a demo from us today!

Published on June 14, 2022

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