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Logistics/Distribution

TMS (Transportation Management System)

Integrates fleet dispatching, route optimization, real-time shipment tracking, and freight settlement to enhance logistics visibility and efficiency.

ISO 28000 (Supply Chain Security Management)EDI Standards
01

Are you facing these challenges?

1. Logistics costs keep rising, but you cannot pinpoint the exact cause

You know what percentage of revenue goes to transportation, but you cannot analyze where costs leak by route, carrier, or product. Without a basis to verify freight invoices, there are cases where you simply pay whatever the carrier bills.

2. Dispatch planning is manual, resulting in low vehicle utilization

Vehicle assignment relies on the dispatcher's experience. Vehicles depart with low load factors, or shipments headed in the same direction are placed on separate vehicles — these inefficiencies repeat. You want to optimize dispatch, but simultaneously considering operating constraints (time windows, loading limits, driver hours of service) is extremely difficult.

3. When customers ask where their shipment is, it takes time to find out

Calling the carrier to check location and then relaying the information back to the customer is a recurring process. Without a real-time tracking system, providing accurate ETAs (Estimated Time of Arrival) is difficult, and you cannot proactively detect delivery delays.

4. Carrier (3PL) management lacks structure

You use multiple carriers, but there are no criteria to compare and evaluate carrier-specific performance and service levels. Contract terms are managed in different formats for each carrier, making it easy to miss renewal dates or difficult to secure favorable conditions.

5. Regulatory compliance for hazmat transportation and ESG reporting is burdensome

Hazmat transportation requires managing numerous items: UN numbers, ADR classes, ERG guides, route restrictions, emergency contacts, and more. Carbon emissions calculation and ESG reporting are also demanded, but there is no system to derive emissions from transportation data.


02

Here is how we solve it

Calculate freight accurately and eliminate cost leakage

Freight management is systematized in a 5-stage pipeline: base rate - surcharge rules - freight calculation - settlement - audit.

  • Base rate structure: Register freight tables by carrier/route/vehicle type and define freight calculation formulas based on distance/weight/volume.
  • Surcharge rule management: Register surcharge conditions such as fuel surcharges, late-night surcharges, remote area surcharges, and oversized cargo surcharges as rules. Applicable conditions are automatically applied during freight calculation.
  • Automated freight audit: Freight invoices from carriers are automatically reconciled against system-calculated freight. Discrepancies are identified, and the workflow handles carrier reconciliation, adjustment, and ERP payment integration.
  • Freight analytics: Analyze freight trends by route, carrier, and period to identify cost reduction opportunities.

Optimize dispatch to increase vehicle utilization

5 route optimization algorithms (CVRP, VRPTW, GA, SA, ACO) simultaneously consider complex operating constraints to create dispatch plans.

  • Separated constraint management: Vehicle capacity, delivery time windows, driver hours of service, and route restrictions are managed as hard constraints (must comply) and soft constraints (comply when possible).
  • Simulation comparison: Compare multiple optimization results, select the best option, and automatically generate dispatch orders upon approval.
  • Consolidation/milk run: Consolidate shipments headed in the same direction or design milk run routes to increase load factors and reduce trip frequency.
  • 3D load simulation: Simulate how cargo should be arranged in the vehicle loading space using 3D bin packing. Maximizes load factor and reduces cargo damage risk.

Track shipment locations in real time and provide customers with accurate ETAs

GPS-based real-time tracking and ML (machine learning) ETA prediction deliver transportation visibility.

  • 8-stage shipment status tracking: Shipment status is updated in real time across 8 stages from receipt to delivery completion.
  • ML-based ETA prediction: Combining historical trip data, real-time traffic information, and weather conditions, the estimated arrival time is refreshed at 15-minute intervals. This is learning-based prediction, not simple distance/speed calculation.
  • Automatic customer notification: When ETA changes, customers are automatically notified via multi-channel communication including SMS, KakaoTalk alerts, and in-app notifications. Information is proactively provided before customers inquire.
  • Telematics integration: Collects and analyzes vehicle operating data including speed, harsh acceleration/deceleration, idling, and fuel consumption. Can be used for driving behavior improvement and fuel cost reduction.

Manage carriers (3PL) systematically

Provides a consistent framework from carrier registration through contracts, performance evaluation, and KPI management.

  • Carrier contract management: Contract terms, freight tables, and service level agreements (SLAs) for each carrier are managed in the system. Renewal date alerts and contract history tracking are available.
  • Carrier KPIs: Carriers are objectively evaluated through performance-based KPIs such as on-time delivery rate, cargo damage rate, and claim processing time.
  • Carrier fleet management: Information about carrier-owned vehicles, maintenance history, and insurance/licensing status can be tracked.
  • AI-powered freight negotiation support: Analyzes historical freight data and market trends to provide data-driven evidence for freight negotiations with carriers.

Manage hazmat transportation and ESG reporting through the system

Data needed for regulatory compliance is automatically collected within the transportation process.

  • Hazmat transportation management: Systematically manages UN numbers, ADR classes, ERG guides, route restrictions, placards, and emergency contacts. Emergency response processes for hazmat incidents are defined as workflows.
  • Carbon emissions calculation: Dual emission factors with TTW (Tank-to-Wheel) and WTW (Well-to-Wheel) automatically calculate carbon emissions per transportation segment. Emission calculations based on vehicle type, fuel type, and trip distance are built into the system.
  • Carbon credit management: Carbon credit management and simulation for K-ETS (Korea Emissions Trading System) and EU-ETS are available.
  • Compliance record keeping: Transportation-related regulatory compliance records are systematically maintained with file attachments.

03

Global standards this solution follows

SCOR Model -- Deliver Process Reference Model

Why does this standard matter?

The Deliver process of the SCOR (Supply Chain Operations Reference) model standardizes the entire process of delivering products to customers. When collaborating with overseas customers or global logistics partners, a SCOR-based transportation process serves as a common language for explaining service levels. Performance measurement metrics also follow SCOR criteria, enabling immediate benchmarking with global logistics companies.

How is it applied in VEXPLOR?

SCOR Deliver ProcessWhat it means for your operationsVEXPLOR approach
D1 (Stocked Product Delivery)Standard delivery process from finished goods warehouse to customerFully implemented: shipment registration - dispatch - tracking - POD
D2 (Make-to-Order Delivery)Delivery tracking for products manufactured per customer orderMTO order transportation tracking via ERP sales_order_items integration
D3 (Engineer-to-Order Delivery)Project-type deliveries starting from design require complex schedule managementBasic tracking available; project logistics-specific features planned for future expansion
D4 (Retail/Distribution Delivery)B2C or distribution channel deliveries require time windows and frequency managementFully implemented: last-mile delivery hubs, time windows, re-delivery logic
DR (Return Delivery)Return logistics requires the same traceability in the reverse directionFully implemented: return transportation process, SCM reverse logistics integration

EDI -- Electronic Data Interchange Standard

Why does this standard matter?

EDI (Electronic Data Interchange) is an international specification for exchanging data between carriers and shippers through standardized electronic documents. Following EDI standards for dispatch requests, shipment status reception, and freight settlement with carriers reduces manual communication and improves data accuracy. Especially when using multiple carriers, a unified data format significantly improves operational efficiency.

How is it applied in VEXPLOR?

EDI StandardWhat it means for your operationsVEXPLOR approach
EDI 204 (Motor Carrier Load Tender)Electronically transmits cargo information and dispatch requests to carriersData structure mapped via dispatch_orders + loading_plans tables
EDI 214 (Shipment Status)Receives current shipment location and status in standard formatTracked via delivery_tracking 8-stage status ENUM
EDI 990 (Response to Load Tender)Electronically confirms carrier acceptance/rejectionManaged via dispatch_orders.status (planned-confirmed-cancelled)
EDI 210 (Freight Invoice)Electronically receives carrier freight invoices for automatic reconciliationMapped via freight_calculations + settlement tables
EDI 856 (Ship Notice)Pre-notifies trading partners of shipment informationIntegrated via shipments + WMS outbound_orders

Actual EDI message (EDIFACT/X12) conversion is handled at the Integration layer, while the data structures themselves maintain alignment with EDI standards for streamlined integration.

ISO 28000 -- Supply Chain Security Management Standard

Why does this standard matter?

ISO 28000 is an international standard for systematically managing security risks across the entire supply chain. It provides a framework for preventing security incidents and responding rapidly when they occur during hazmat transportation, high-value cargo transport, and international logistics. Global customers increasingly check ISO 28000 compliance when evaluating logistics partners' security levels.

How is it applied in VEXPLOR?

ISO 28000 RequirementWhat it means for your operationsVEXPLOR approach
Risk AssessmentHazmat transportation and high-risk segments must be proactively identified and managedhazmat_shipments (UN number/ADR class), claim_predictions (AI proactive prediction)
Security ManagementTransportation security systems and access controls must be documentedSecurity cross-solution integration, compliance_records for security record management
Emergency ResponseRapid response systems and contact networks must be in place for hazmat incidentshazmat_incidents incident management, emergency_contact, WF8 hazmat response workflow
TraceabilityCargo movement routes and status must be trackable in real timeGPS real-time tracking, blockchain POD (SHA-256 hash + electronic signature tamper-proofing)
Document ManagementSecurity-related documents and certifications must be systematically maintainedcompliance_records (file attachment), 4 document_template types

GS1 EPCIS -- Electronic Product Code Event Tracking Standard

Why does this standard matter?

GS1 EPCIS (Electronic Product Code Information Services) is a standard for recording events (identification, loading, dispatch, location changes) that occur as cargo moves through the supply chain in a standardized format. Following this standard provides end-to-end supply chain visibility and enables consistent tracking data sharing between trading partners.

How is it applied in VEXPLOR?

EPCIS EventWhat it means for your operationsVEXPLOR approach
ObjectEvent (Cargo Identification)Individually identifies and records unique cargo and lot informationshipment_items (barcode), shipment_holds (lot_id)
AggregationEvent (Loading)Records the point when cargo is loaded onto pallets/containersloading_plans, consolidation_shipments
TransactionEvent (Dispatch)Records dispatch orders and shipment creation timestampsdispatch_orders, shipments
Visibility Event (Tracking)Records real-time cargo location and status changesdelivery_tracking (GPS, 8-stage status), telematics_events

04

How it differs from existing systems

6 built-in AI/ML prediction capabilities

While most TMS solutions focus on route optimization, VEXPLOR TMS has 6 built-in AI/ML prediction capabilities.

AI/ML CapabilityPractical Benefit
ETA PredictionImproves customer experience through real-time arrival time prediction
Demand ForecastingEnables proactive vehicle procurement based on transportation volume prediction
Disruption PredictionProactive risk detection based on weather/traffic/events
Claim PredictionAdvance warnings for cargo damage/delay probability
Freight Negotiation SupportProvides data-driven negotiation evidence based on market data
Natural Language BI QueryAnswers questions like "What was the Seoul-Busan route freight cost this month?"

Blockchain proof of delivery (POD)

Delivery receipts at the point of delivery completion are stored in a tamper-proof form using SHA-256 hashing and electronic signatures. They can be used as objective evidence in delivery disputes. This is a feature not yet offered by most commercial TMS solutions.

Full ESG integration

Dual emission factors with TTW (Tank-to-Wheel) and WTW (Well-to-Wheel), K-ETS/EU-ETS carbon credit management, and carbon reduction simulation are fully integrated within the TMS for transportation ESG management. There is no need to collect data from separate systems for ESG reporting.

Last-mile delivery management

Manages both B2B and B2C deliveries. Delivery hub management, delivery time windows, driver assignment, and re-delivery attempts (automatic return after 3 failed attempts) are systematized within the last-mile process. While conventional TMS solutions like SAP TM focus on line-haul transportation, VEXPLOR TMS covers last-mile delivery as well.

20 automated workflows

Core transportation processes are automated through 20 workflows. Dispatch-tracking-POD, freight calculation-settlement-audit, hazmat transportation, last-mile re-delivery, and ETA prediction notifications reduce manual steps in repetitive tasks.

13 cross-solution integrations

VEXPLOR TMS integrates with 13 solutions: HR, EAM, ERP, WMS, SCM, MES, APS, ESG, Groupware, Digital Twin, Security, PLM, and FEMS. Transportation operates not as a standalone system but as part of the enterprise-wide logistics chain.


05

How does it compare to global solutions?

VEXPLOR TMS's functional scope is compared to major global TMS solutions. This is expressed through functional coverage rather than self-scoring.

Global comparison by feature area

Feature AreaSAP TMOracle TMSBlue Yonder TMSManhattan TMSVEXPLOR TMSWhat this means for you
Dispatch/DispatchTop-tierTop-tierTop-tierTop-tierTop-tierDispatch order-loading plan-optimization execution is at SAP TM equivalent level
Route Optimization (VRP)Top-tierExcellentTop-tierExcellentTop-tier5 algorithms (CVRP/VRPTW/GA/SA/ACO) on par with SAP TM and Blue Yonder
Freight Management/AuditTop-tierTop-tierExcellentExcellentTop-tier5-stage freight pipeline (rate-surcharge-calculation-settlement-audit) is at global top-tier level
3PL ManagementExcellentTop-tierExcellentExcellentTop-tierCarrier contracts, fleet, and KPI management is more comprehensive than most global solutions
Real-time Tracking (GPS)ExcellentExcellentTop-tierTop-tierTop-tierGPS tracking combined with ML ETA prediction provides global top-tier visibility
POD/ePODExcellentExcellentExcellentTop-tierTop-tierBlockchain-based tamper-proof POD is a differentiating feature not offered by most commercial TMS
Last MileFairFairTop-tierTop-tierTop-tierB2B/B2C delivery, re-delivery logic, delivery hub management are strengths versus line-haul-focused TMS
IntermodalTop-tierExcellentExcellentFairExcellentLeg-by-leg tracking is supported, though a dedicated workflow is not yet implemented
Hazmat (ADR)Top-tierExcellentFairFairTop-tierUN number/ADR class/ERG/route restrictions/emergency response workflow fully implemented
TelematicsFairFairExcellentExcellentTop-tierSpeed, acceleration/deceleration, idling, and fuel operating data collection/analysis built into TMS
HOS (Hours of Service)FairExcellentFairTop-tierTop-tierDriver operating time, rest periods, and violation alerts manage commercial vehicle regulatory compliance
Carbon Emissions/ESGExcellentFairExcellentFairTop-tierTTW+WTW dual emission factors, K-ETS/EU-ETS carbon credits, and simulation are a distinctive strength
AI/ML PredictionExcellentFairTop-tierExcellentTop-tier6 built-in AI capabilities: ETA, demand, claims, freight negotiation, NL query, logistics simulation
3D Bin PackingFairBasicExcellentFairTop-tier3D simulation of vehicle loading space enables maximum load factor optimization
Blockchain PODBasicBasicFairFairTop-tierSHA-256 hash + electronic signature tamper-proof receipt is the most advanced in the industry
Autonomous/Drone DeliveryBasicMinimalFairFairExcellentPre-established data structures for autonomous/drone delivery provide future readiness
NL BI QueryFairBasicFairBasicTop-tierNatural language transportation data querying is not offered by most TMS solutions
Cross-solutionTop-tierExcellentFairFairTop-tierIntegration with 13 solutions represents the broadest scope versus competitors

VEXPLOR TMS differentiation areas

Areas where VEXPLOR TMS shows strength relative to global solutions.

Differentiation AreaDetailsWhat this means for you
13 cross-solution integrationsHR/EAM/ERP/WMS/SCM/MES/APS/ESG/Groupware/DT/Security/PLM/FEMSTransportation is organically connected to the entire enterprise system, eliminating the need for separate interface development
6 AI/ML prediction typesETA, demand, claims, freight negotiation, NL query, logistics simulationBeyond simple route optimization, predictive and proactive transportation management becomes possible
Full ESG integrationTTW+WTW dual emission factors, K-ETS/EU-ETS carbon credits, simulationESG reporting data is collected within the transportation process without a separate system
Blockchain PODSHA-256 hash + electronic signature tamper-proof receiptTamper-proof objective evidence is secured for delivery disputes
20 workflows2-3x the automation scope of competitorsReduced manual steps improve operational efficiency

Transparently disclosed unsupported features

Features provided by global solutions but currently not supported in VEXPLOR TMS are explicitly listed.

Unsupported FeatureRelated Global SolutionRoadmap
Customs ProcessSAP TM, Oracle TMSAddressed through SCM import process integration; dedicated tables planned (short-term)
Intermodal Dedicated WorkflowSAP TMIntermodal transition automation workflow planned (short-term)
Dynamic PricingBlue YonderReal-time supply/demand-based freight auto-adjustment planned (mid-term)
Driver Mobile App (PWA)Manhattan TMSDedicated driver mobile app planned (mid-term)
Map-based VisualizationSAP TM, Blue YonderDelivery tracking and route optimization result map display planned (short-term)

06

Expected benefits after implementation

Logistics cost reduction

Automated freight audit blocks overcharges, and route optimization with consolidation/milk runs reduces vehicle trips. Freight analysis data strengthens carrier negotiation leverage.

Improved dispatch efficiency

5 optimization algorithms increase load factors and reduce trip distances and times. Moving beyond manual dispatch reduces dispatcher workload while achieving better results.

Improved customer service levels

Real-time tracking and ML ETA prediction proactively provide customers with accurate delivery information. When delays are anticipated, advance notification prevents customer complaints.

Regulatory compliance cost reduction

Data needed for hazmat transportation regulations and ESG reporting is automatically collected within the transportation process. The burden of separate manual data collection and report preparation is reduced.

Enhanced carrier management

Data-driven carrier evaluation and KPI management enable continuous improvement of transportation service quality. Concentrating volume with top carriers and early identification of underperformers for replacement becomes possible.

Vehicle maintenance cost reduction

Analyzing maintenance history, fuel consumption, and telematics data per vehicle predicts preventive maintenance timing. Analyzing driving behavior through harsh acceleration/deceleration data improves fuel efficiency and extends vehicle lifespan.

Reduced claim costs

AI-based advance prediction of cargo damage/delay enables proactive measures for high-risk shipments (repackaging, route changes, carrier substitution). When claims do occur, blockchain POD and GPS tracking data serve as objective evidence, reducing settlement disputes.


07

Key feature details

Dispatch and dispatching

  • Shipment registration, dispatch orders, loading plans, optimization execution
  • Automated dispatch approval and carrier notification through workflows

Route optimization

  • CVRP (capacity constrained), VRPTW (time window constrained), GA (genetic algorithm), SA (simulated annealing), ACO (ant colony optimization)
  • Hard/soft constraint separation, simulation comparison with optimal plan selection

Fleet management

  • Vehicle master, fuel management, maintenance history, insurance/licensing management
  • Telematics event collection/analysis (speed, acceleration/deceleration, idling, fuel)
  • Driver hours of service (HOS) management

Real-time tracking

  • GPS-based location tracking, 8-stage status updates
  • ML ETA prediction (15-minute refresh interval)
  • Customer multi-channel notification (SMS, KakaoTalk, in-app)

Proof of delivery (POD)

  • Electronic receipt, photo capture, signature collection
  • Blockchain-based tamper-proofing (SHA-256 hash + electronic signature)

Driver hours of service (HOS) management

  • Driving time management based on commercial vehicle transportation regulations
  • Continuous driving time, rest period, daily/weekly driving limit tracking
  • HOS violation advance warning and history management

Intermodal transportation

  • Ocean/air/rail/road intermodal management
  • Leg-by-leg transportation mode and status tracking
  • Dwell time monitoring at intermodal transition points

Last mile

  • Delivery hub management, B2B/B2C classification, delivery time windows
  • Re-delivery logic (automatic return after 3 attempts)
  • Data structure readiness for autonomous/drone delivery

08

Currently unsupported areas and roadmap

Unsupported AreaDescriptionRoadmap
Customs ProcessDedicated management for import/export customs and bonded transportationAddressed through SCM import process integration; dedicated tables planned
Intermodal Dedicated WorkflowIntermodal transition automationIncluded in short-term roadmap
Dynamic PricingReal-time supply/demand-based freight auto-adjustmentIncluded in mid-term roadmap
Driver Mobile AppDedicated driver PWA with offline modeIncluded in mid-term roadmap
Map-based VisualizationDelivery tracking and route optimization result map displayIncluded in short-term roadmap

09

Real-world transportation scenarios

Scenario 1: Daily dispatch planning

Each morning, pending outbound orders are reviewed and the route optimization algorithm is executed. After the dispatcher reviews and approves the system-proposed dispatch plan, dispatch orders are automatically transmitted to carriers. Carriers confirm the dispatch in the system and respond with acceptance/rejection.

Scenario 2: Proactive delivery delay response

At 2:00 PM, the ETA for a Seoul-Busan shipment is predicted to be delayed by 1 hour from the original schedule. The system automatically sends a notification to the customer and also alerts the dispatcher. The dispatcher checks the delay cause (traffic congestion) on the dashboard and, if necessary, directs an alternative route.

Scenario 3: Month-end freight settlement

When freight invoices are received from each carrier at month-end, the system automatically reconciles them against system-calculated freight based on actual transportation data (distance, weight, surcharge conditions). Discrepancies are displayed as a list, and after the personnel reconciles with the carrier, the adjusted amount is submitted for ERP payment.

Scenario 4: Hazmat transportation

When a hazmat shipment is received, the ADR class is automatically classified based on the UN number. Route restrictions for that class (e.g., tunnel passage prohibited) are automatically reflected in dispatch optimization, and placard information and emergency contact details are transmitted to the driver. If an incident occurs during transportation, the emergency response workflow activates, guiding regulatory authority notification and incident handling procedures.

Scenario 5: Carbon emissions data collection for ESG reporting

At the quarterly ESG reporting milestone, carbon emissions for all transportation shipments during the period are automatically aggregated. Emissions classified by vehicle type, fuel type, and route are ready for ESG report data extraction without separate processing. Since calculations apply TTW and WTW dual emission factors, the appropriate figure can be selected based on reporting standards.


10

Document templates

4 document templates required for transportation operations are provided by default.

  • Waybill: Standard waybill including cargo information, shipper/consignee, and transportation terms
  • Proof of Delivery (POD): Delivery receipt documenting consignee signature, receipt time, and cargo condition
  • Freight Settlement Statement: Monthly freight details and settlement results by carrier
  • Hazmat Transportation Documents: Regulatory documents including UN number, ADR class, ERG guide, and emergency contacts

Try it yourself

Apply the TMS (Transportation Management System) template on the canvas, and data models to screens are auto-generated.

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