How to choose a TMS for last-mile delivery

Choosing the right Transportation Management System (TMS) can make or break your last-mile delivery operation. Here's what you need to know.

Why last-mile delivery needs a specialized TMS

Traditional TMS solutions were built for long-haul trucking and LTL operations. Last-mile delivery has fundamentally different requirements:

• High-volume, multi-stop routes (50-200+ stops per route)
• Tight delivery windows (2-hour or same-day delivery)
• Real-time customer communication and tracking
• Complex billing with accessorial charges
• Integration with e-commerce and retail systems

Key features to look for

1. Route Optimization

The backbone of last-mile efficiency. Your TMS should handle:

• Multi-stop route optimization (not just point-to-point)
• Time window constraints
• Vehicle capacity and type considerations
• Real-time traffic data integration

2. Mobile Driver Experience

Your drivers are the face of your business. They need:

• Intuitive mobile app (iOS and Android)
• Turn-by-turn navigation
• Digital proof of delivery (photos, signatures)
• Offline mode for areas with poor connectivity

3. Automated Billing & Invoicing

Manual invoicing is a bottleneck. Look for:

• Automated invoice generation from completed deliveries
• Accessorial charge calculation (redelivery, wait time, etc.)
• Carrier settlement automation
• Integration with accounting systems

4. Integrations

Your TMS needs to play well with your existing tech stack:

• ERP/WMS integration (SAP, Oracle, Manhattan, etc.)
• E-commerce platforms (Shopify, WooCommerce)
• ELD/telematics systems (Samsara, Geotab)
• Carrier APIs and EDI

Questions to ask vendors

1. How long does implementation typically take?
2. What's included in onboarding and training?
3. How do you handle data migration from our current system?
4. What's your API documentation like?
5. Do you offer a pilot program or proof of concept?
6. What are your SLA guarantees for uptime?
7. How is customer support structured? (hours, response times)

Implementation timeline

A realistic implementation timeline for a last-mile TMS:

• Week 1-2: Discovery, configuration, and data migration
• Week 3: User training and pilot testing
• Week 4: Full rollout and go-live

Measuring success

Track these metrics to validate your TMS investment:

• On-time delivery rate
• Route efficiency (miles per stop, stops per hour)
• Invoicing time (from delivery to invoice)
• Customer satisfaction scores
• Operational cost per delivery