How Does a TMS Reduce Fleet Management Costs?
Published:Feb 25, 2026
4 min. read
The trucking and freight industry is competitive, and any way that freight companies can reduce costs contributes to improved profit margins — and a Transportation Management System (TMS) like TenTrucks TMS can help. Freight companies that employ a Transportation Management System for fleet management can reduce costs by as much as 10% – 20% to help you improve your fleet operations. Freight companies that want to know — how does a TMS reduce fleet management costs — can get the answers to their questions at TenTrucks.
6 Ways a TMS Reduces Fleet Management Costs
Transportation Management Systems employ a wealth of innovative solutions that will help your freight company reduce your fleet management costs. Key features like route optimization software, real-time tracking solutions, and load management will impact the efficiency of your fleet operations to help you reduce costs in a variety of ways.
Here is a better look at key ways that a Transportation Management System can help trucking and freight companies reduce costs:
1. Route Optimization
The more efficient your truck routes are, the more money you can save in your day-to-day fleet operations. TMS platforms employ AI solutions to calculate the most fuel efficient routes based on a number of factors that include mileage, fuel costs, and traffic patterns. This aspect of a Transportation Management System can help companies identify the most efficient trucking routes and driving habits that impact fuel costs.
2. Load Management and Consolidation
Full Truckload (FTL) and Less-Than-Truckload (LTL) load management is important to the success of freight companies and Transportation Management Systems that provide load management and consolidation solutions can help reduce costs. This software helps maximize the amount of cargo on each truck, reduces the cost per shipment, and helps eliminate empty miles to help reduce fleet management costs.
3. Preventive Maintenance
Fleet maintenance costs can add up and when a vehicle breaks down, it costs freight companies money in repair costs and lost productivity. These fleet maintenance costs can be reduced by TMS platforms that implement Electronic Logging Devices (ELDs) and other innovative solutions. By monitoring and tracking fleet maintenance schedules, a Transportation Management System can help freight companies reduce long-term fleet maintenance costs.
4. Automated Administrative Operations
The day-to-day administration of freight companies takes time and money, handling important documents like invoices, payroll, and compliance. A Transportation Management System has the capability to automate many aspects of day-to-day paperwork and allows office staff to focus on more complex tasks. With this improved efficiency in the office, freight companies can see reduced fleet management costs.
5. Improved Driver Performance and Management
The ability to monitor driver performance and communicate with drivers is important to fleet operations for freight companies. ELDs integrated with TMS platforms allow dispatchers and fleet managers to monitor driver performance and better communicate with drivers on the road via TMS Mobile Driver Apps. With a better view of driver performance, freight companies can promote safer and more efficient driving practices, lower risks, and lower insurance costs.
6. Increased Access to Fleet Analytics
Data plays an important role in being able to reduce fleet management costs. The more data that fleet managers have to analyze, the more informed decisions they can make to improve operations. Real-time analytics provided by a Transportation Management System allow managers to monitor Key Performance Indicators (KPIs), identify where fleet operations are most inefficient, compare carrier rates, and improve the use of fleet resources.
READ MORE: What Is the ROI for a Transportation Management System in Trucking?
Are you looking for ways to improve profits for your trucking company? You may be asking — how does a Transportation Management System reduce fleet management costs? TenTrucks has the answer with this quick overview of the key ways a TMS will help companies reduce costs and boost profitability.