Infographic: TMS and broker systems intersecting

Infographic: TMS and broker systems intersecting

The dynamic of digitally oriented freight brokers partnering with major transportation management system (TMS) providers shows no signs of slowing, with Uber Freight linking up with Oracle in mid-May as the latest example.

The driving force behind these partnerships is the need for these emergent brokers to quickly broaden their base of shipper demand. The benefit to TMS providers is the ability to give their shipper users an integrated source of capacity to compare with contract rates across their universe of for hire, dedicated, and private fleet options, as well as more ad hoc searches into digital load boards.

The increase in the number of these partnerships has accelerated over the past year, with Uber Freight eager to partner with as many TMSs as possible. The broker has established four partnerships with leading TMSs, whereas other digitally led brokers, like Loadsmart and Convoy, to this point have concentrated on fewer such arrangements.

These partnerships generally revolve around application programming interface (API) connectivity, which creates direct interfaces of broker rates into TMS workflows that are more cumbersome to generate through traditional electronic data interchange (EDI). Digitally oriented brokers have taken the lead on these partnerships because they tend to build their products with an API-first mentality.