HomeCollege of Business Administration and Management Research Journalvol. 10 no. 1 (2025)

Transportation Management System (TMS) Applied by Small-Sized Businesses in the New Normal

Kaye Anne A. Cascalla | Danica Kae A. Abanador | Mary Patrice T. Bauyon | Zailene B. Calalo | Niño Philip L. Perculeza

Discipline: Business

 

Abstract:

Transportation Management System (TMS) plays a vital role in the overall success of the business operations, connecting all the channel members in the logistics’ supply chain. However, proper re– evaluation is necessary as businesses have faced an array of problems, particularly with the new protocols and procedures brought by the global pandemic. Due to the need for a greater understanding of the impact of the new normal in the TMS’ efficiency, the researchers were motivated to conduct this investigation. This study aimed to test the effectiveness of the transportation management system applied by small-sized businesses in the new normal. Specifically, it sought to evaluate the TMS’ efficiency in terms of operations management, freight management, and tracking. This study is descriptive in nature, and was participated in by 244 managers and owners of small-sized businesses operating in Batangas City. A modified questionnaire was employed as its primary data gathering instrument, consisting of two sections. Based on the reliability test, there has been an excellent consistency on the instrument, exhibiting a 0.921 Cronbach’s Alpha value. The gathered data was encoded, tallied, and interpreted using various statistical methods such as frequency, percentage distribution, weighted mean, Mann Whitney Test and Kruskal Wallis Test. Based on the findings, it can be inferred that TMS remains effective in helping small-sized businesses in terms of operations management, freight management and tracking in the new normal. It was also concluded that the majority of the small businesses operating in Batangas City are in the field of wholesale and retail trade, and are using a certain platform as their preferred TMS. A set of recommendations were also presented, along with a proposed plan of action for proper TMS adjustment, and to ensure that its application will be refined for the re-strengthening of the businesses’ transport operations.



References:

  1. Altexsoft. (2022). Transportation Management Systems (TMS): Features and Providers. AltexSoft. Retrieved January 6, 2023, from https://www.altexsoft.com/blog/transportation-management-system/
  2. Arab Trade Union Confederation. (2020). Impact of the Covid 19 on the Transport Industry. impact_of_covid-19_on_tranportation.pdf (ituc-csi.org)
  3. Assiri, S., Alyamani, M., Mansour, A., Fakieh, B., Badri, S., & Babour, A. (2020). Current Shipment Tracking Technologies and Trends in Research. ICISDM 2020: Proceedings of the 2020 the 4th International Conference on Information System and Data Mining, pp 113–117. https://doi.org/10.1145/3404663.3404683
  4. Bartik, A. W., Bertrand, M., Cullen, Z. B., Glaeser, E. L., Luca, M., & Stanton, C. T. (2020). How Are Small Businesses Adjusting to COVID-19? Early Evidence from a Survey. National Bureau of Economic Research. How Are Small Businesses Adjusting to COVID-19? Early Evidence from a Survey | NBER
  5. Batangas City Gov PH. (n.d). WHY DO BUSINESS IN BATANGAS CITY. SECTORAL-PROFILE.pdf (batangascity.gov.ph)
  6. Belitski, M., Guenther, C., Kritikos, A.S. Belitski, M., &  Thurik ,R. (2022). Economic Effects of the COVID-19 Pandemic on Entrepreneurship and Small Businesses. Small Bus Econ 58, 593–609. https://doi.org/10.1007/s11187-021-00544-y
  7. Bhattacharjee, D., Gould, R., Greenberg, E., & Kandel, M. (2020). US freight after COVID-19: What’s next?. McKinsey & Company. US freight after COVID-19: What’s next? (mckinsey.com.br)
  8. Bhattacharjee, A. (2023). What Is a Transportation Management System (TMS) and how does it work?. What is Transportation Management System & how it works (tatanexarc.com)
  9. Cathy. (2020). THE TWO MAJOR REASONS WHY SOAP & SKIN CARE BUSINESSES FAIL. The Two Major Reasons Why Soap & Skin Care Businesses Fail - thesoapguy.com blog
  10. Constantino, J., Dimdam, M., Luego, R., Soriso, E., Tolentino, R., & Dela Cruz, A. U. (2019). Freight Management System: Logistics Part 2 (Vendor Portal, Fleet Management System, Vehicle Reservation System, Document Tracking System, Audit Management System).
  11. Ascendens Asia Singapore – Bestlink College of the Philippines Journal of Multidisciplinary Research, 1(1).
  12. Freight Management System: Logistics Part 2 (Vendor Portal, Fleet Management System, Vehicle Reservation System, Document Tracking System, Audit Management System)
  13. Ascendens Asia Singapore – Bestlink College of the Philippines Journal of Multidisciplinary Research (aaresearchindex.com)
  14. Coyote Logistics. (2022). The Small Business Guide to Logistics Technology: 5-Steps for Growing Shippers. Small Businesses Guide to Logistics Technology: 5-Steps for Growing Shippers (coyote.com)
  15. Daño-Luna, M., Canare, T., & Francisco, J. P. (2018). Drivers of Philippine SME Competitiveness: Results of the 2018 SME Survey. Papers.ssrn.com.https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3299885
  16. DDI Development. (2021). Key Functions of Transportation Management System (TMS) in Logistics. General functions of Transportation Management System (TMS) in logistics | DDI Development (ddi-dev.com)
  17. Deane, M. T. (2022). Top 6 Reasons New Businesses Fail. Top 6 Reasons New Businesses Fail (investopedia.com)
  18. Dorofeev, A., Altukhova, N., Filippova, N., & Pashkova, T. (2020). Development of Transportation Management System with the Use of Ontological and Architectural Approaches to Ensure Trucking Reliability. 12(20):8504. DOI:10.3390/su12208504
  19. Dua, A., Mahajan, D., Oyer, L., & Ramaswamy, S. (2020). US Small-Business Recovery after the COVID-19 Crisis. US small-business recovery after the COVID-19 crisis (jaipuria.ac.in)
  20. Dudovskiy, J. (2022). The Ultimate Guide to Writing a Dissertation in Business Studies: A Step-by-Step Assistance (6th edition). Business Research Methodology. E-Book - Research-Methodology
  21. Engidaw, A.E. (2022).  Small businesses and their Challenges during COVID-19 Pandemic in Developing Countries: in the Case of Ethiopia. Journal of Innovation and Entrepreneurship 11, 1 (2022). https://doi.org/10.1186/s13731-021-00191-3
  22. Erazo, F. A. G. (2021). Ethics and its Importance in Research. (pp.9-22). (PDF) Ethics and its Importance in Research (researchgate.net)
  23. Essex, D. (2020). What is a Transportation Management System (TMS)? TechTarget. Retrieved January 6, 2023, from https://www.techtarget.com/searcherp/definition/transportation-management-system-TMS
  24. Fabiel, N. F., Pazim, K. H., & Langgat, J. (2020). The Impact of COVID-19 Pandemic Crisis on Micro-Enterprises: Entrepreneurs’ Perspective on Business Continuity and Recovery Strategy. Journal of Economics and Business, Vol.3 No.2 (2020). The Impact of COVID-19 Pandemic Crisis on Micro-Enterprises: Entrepreneurs’ Perspective on Business Continuity and Recovery Strategy by Noor Fzlinda Fabeil, Khairul Hanim Pazim, Juliana Langgat :: SSRN
  25. Garg, R., Kiwelekar, A. W., & Netak, L. D. (2021). Logistics and Freight Transportation Management: An NLP based Approach for Shipment Tracking. Department of Computer Engineering, Dr. Babasaheb Ambedkar Technological University, Lonere Maharashtra, India. 28 JST-2606-2021.pdf (upm.edu.my)
  26. Garg, R., Kiwelekar, A. W., & Netak, L. D. (2021). Logistics and Freight Transportation Management: An NLP based approach for Shipment Tracking. Pertanika J. Science & Technology, 29(4), 2745-2765. DOI: https://doi.org/10.47836/pjst.29.4.28
  27. Guerrero, D., Itoh, H., & Tsubota, K. (2021). Freight rates up and down the urban hierarchy. Research in Transportation Business & Management. DOI: 10.1016/j.rtbm.2021.100775. [PDF] Freight rates up and down the urban hierarchy | Semantic Scholar
  28. Guo, H., Yang, Z., Huang, R. et al. The digitalization and public crisis responses of small and medium enterprises: Implications from a COVID-19 survey. Front. Bus. Res. China 14, 19 (2020). https://doi.org/10.1186/s11782-020-00087-1
  29. Globaltranz. (2023). The Value of a TMS for Multimodal Shipping. The Value of a TMS for Multimodal Shipping | GTZ (globaltranz.com)
  30. Griffis, S. E., Goldsby, T. J. (2007). Transportation Management Systems: An Exploration of Progress and Future Prospects. DOI:10.22237/jotm/1175385780
  31. Haas. D., Irlbacher. S., Loo. R. V. D., and Storbrock. P. (2020). Our Perspective on the Transportation Management System (TMS) Market. Transportation Management System Compass.transportation_management_system_compass.pdf (deloitte.com)
  32. Hand, R. (2022). How Small Businesses Can Improve Their Supply Chains in Difficult Times. How Small Businesses Can Improve Their Supply Chains (shipbob.com)
  33. Hasan, H., AlHadhrami, E., AlDhaheri, A., Salah, K., & Jayaraman, R. (2019) Smart Contract-Based Approach for Efficient Shipment Management. Computers & Industrial Engineering, Volume 136, 2019, Pages 149-159, ISSN 0360-8352, https://doi.org/10.1016/j.cie.2019.07.022.
  34. Helo, P., & Shamsuzzoha, A.H.M. (2020). Real-Time Supply Chain—A Blockchain Architecture for Project Deliveries. Robotics and Computer-Integrated Manufacturing, Volume 63, 2020, 101909, ISSN 0736-5845, https://doi.org/10.1016/j.rcim.2019.101909.
  35. Hentschel, T., Steinpichler, C., & Hartwig, A. (2020). Transportation Management System Compass. Deloitte. Retrieved January 6, 2023, from https://www2.deloitte.com/content/dam/Deloitte/de/Documents/consumer-business/transportation_management_system_compass.pdf
  36. Heinbach. C., Beinke. J., Kammler. F., and Thomas. O. (2022). Data-Driven Forwarding: A Typology of Digital Platforms for Road Freight Transport Management. Electron Mark. https://doi.org/10.1007%2Fs12525-022-00540-4
  37. Indeed Editorial Team. (2022). Business Partnership Problems: 11 Common Causes and How to Avoid Them. Business Partnership Problems: 11 Common Causes and How To Avoid Them | Indeed.com
  38. IT & Telecom. (2020). Transportation Management Systems (On-Premise and On-Demand) Market Outlook 2030. Transportation Management Systems Market Overview 2030 (transparencymarketresearch.com)
  39. Jovic, M., Tijan, E., Aksentijevic, S., & Zgalijic, D. (2020). Disruptive Innovations in Electronic Transportation Management Systems. 1-20. DOI:10.18690/978-961-286-362-3.1
  40. Khattar, M. (2023). Transport Management System: A Definitive Guide. What is a Transportation Management System (TMS)? (locus.sh)
  41. Kluwer, W. (2022). What is a sole proprietorship and how to start one. What is a Sole Proprietorship & How to Start One | Wolters Kluwer
  42. Knowledge Center. (2023). Transportation Management System: Meaning, Importance, and Benefits. Transportation Management System: Meaning, Importance, and Benefits - Inbound Logistics
  43. Li. X. (2014). Operations Management of Logistics and Supply Chain: Issues and Directions. Discrete and Dynamic Optimization Problems in Operations Management, vol. 2014, Article ID 701938. https://doi.org/10.1155/2014/701938
  44. Magboo, S. M., Marasigan, F., & Mendoza, I. (2021). Assessment on the Level of Effectiveness of Transportation Management System Applied by Abest Express, Calabarzon and Manila Branches.
  45. Manors. (2021). Invest in Batangas: A Guide to Investing in Southern Luzon’s Key Emerging Province. Invest in Batangas: A Guide to Investing in Southern Luzon’s Key Emerging Province | Condo in Batangas | Condo in Lipa - Camella Manors Lipa
  46. McCrea, B. (2019). 2019 Transportation Management Systems (TMS) Market Update: Keeping pace with the times. Logistics Management. 2019 Transportation Management Systems (TMS) Market Update: Keeping pace with the times - Logistics Management (logisticsmgmt.com)
  47. Minor, Y. (n.d). How to Transport and Ship Goods for Small Businesses. DNB_How_To_Ship_Or_Transport_Goods_A_Guide_For_Small_Business.pdf
  48. Naradda Gamage, S. K., Ekanayake, E., Abeyrathne, G., Prasanna, R., Jayasundara, J., & Rajapakshe, P. (2020). A Review of Global Challenges and Survival Strategies of Small and Medium Enterprises (SMEs). Economies, 8(4), 79. https://doi.org/10.3390/economies8040079
  49. Nebraska Warehouse. (2019). Transport Management Systems Small Businesses. Transport Management Systems Small Businesses | Nebraska Warehouse
  50. Nguyen, D. H., Leeuw, S. D., Dullaert, W., & Foubert, B. P.  J. (2019). What Is the Right Delivery Option for You? Consumer Preferences for Delivery Attributes in Online Retailing. Journal of Business Logistics, https://doi.org/10.1111/jbl.12210 
  51. Palkina, E. (2022). Transformation of business models of logistics and transportation companies in digital economy. Transportation Research Procedia, Volume 63, 2022, Pages 2130-2137. https://doi.org/10.1016/j.trpro.2022.06.239
  52. Panchenko, N. Dr. Sc., Krasheninin, A. Dr. Sc., Kovalov, A. PhD, Shapatina, O. PhD, & Kovalova, O. PhD. (2021). Improvement of Freight Management Technology. Ukrainian State University of Railway Transport (Kharkiv). Theses_2021_10.12.pdf (kart.edu.ua)
  53. Papadopoulos, T., Baltas, K. N., & Balta, M. E. (2020). The use of digital technologies by small and medium enterprises during COVID-19: Implications for theory and practice. International Journal of Information Management, 55, 102192. https://doi.org/10.1016/j.ijinfomgt.2020.102192
  54. Pat Research. (n.d.). Top 20 Transportation Management Software. Top 20 Transportation Management Software in 2022 - Reviews, Features, Pricing, Comparison - PAT RESEARCH: B2B Reviews, Buying Guides & Best Practices (predictiveanalyticstoday.com)
  55. Schulz, J. D. (2019). Freight Audit and Payment Update: Take what you need. Logistics Management. Freight Audit and Payment Update: Take what you need - Logistics Management (logisticsmgmt.com)
  56. Shafi, M., Liu, J., & Ren, W. (2020). Impact of COVID-19 Pandemic on Micro, Small, and Medium-Sized Enterprises operating in Pakistan. Research in Globalization, 2. Impact of COVID-19 pandemic on micro, small, and medium-sized Enterprises operating in Pakistan - ScienceDirect
  57. Shinozaki, S., & Rao, L. N. (2021). COVID-19 Impact on Micro, Small, and Medium-Sized Enterprises under the Lockdown: Evidence from a Rapid Survey in the Philippines. Papers.ssrn.com. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3807080
  58. Shinozaki, S., & Rao, L. N. (2021). Covid-19 Impact on Micro, Small, and Medium-Sized Enterprises under The Lockdown: Evidence from a Rapid Survey in the Philippines. ADBI Working Paper Series. COVID-19 Impact on Micro, Small, and Medium-Sized Enterprises under the Lockdown: Evidence from a Rapid Survey in the Philippines (adb.org)
  59. Straight, B. (2019). Making the Case for TMS Implementation. Making the case for TMS implementation - FreightWaves
  60. Trinity Logistics. (2020). Guide to Transportation Management Systems. A Burris Logistics Company. Guide to Transportation Management Systems [FREE] (trinitylogistics.com)
  61. Vanpetch, Y., & Sattayathamrongthian, M. (2022). Technology Acceptance and Willingness to invest in Transportation Management System of Small and Medium Enterprise in Nakhon Pathom, Thailand. Transportation Research Procedia,   Volume 63, 2022, Pages 2458-2465. https://doi.org/10.1016/j.trpro.2022.06.282
  62. Wadhwa, T. (2022). What is a Transportation Management System (TMS)? Why Do You Need Transportation Management System? 4 Key Benefits Inside! (loconav.com)
  63. Wanganoo, L., and Patil, A. (2020). “Preparing for the smart cities: IoT enabled last-mile delivery,” 2020 Advances in Science and Engineering Technology International Conferences (ASET), 2020, pp. 1-6, DOI: 10.1109/ASET48392.2020.9118197.