Question

What is the difference between Centralized TMS and Decentralized TMS? Provide a real-life example of each.

Answer 1

Centralized Transport Management System (TMS) is one where all the data points are integrated so that a transaction made at one end of the vendor gets percolated to the other end of the client. Every information regarding a vehicle can be observed at any point in time. There is minimal manual interference. For e.g.: The fleet management of Amazon is centralized. At any point in time you can track where the parcel is, who is moving it, what is the status of the product.

A Decentralized TMS, however has a lot of manual intervention in between. The software system of different parties are not integrated so there is delay in data transfer. Under this condition a vehicle cannot be tracked on real time basis. An example could be a local grocery store, who can track information regarding whether the vehicle has moved with the vehicle but it can't ascertain where the vehicle is currently until it calls up the vehicle driver and gets the information on the same.