A Freight Management System (FMS) is software that helps businesses manage, automate and optimise the movement of goods across multiple carriers and locations. It centralises core freight tasks, including shipment planning, rate management, carrier selection, tracking and documentation, so logistics teams can improve efficiency, reduce costs and gain full visibility across the supply chain.
Key Functions of a Freight Management System
A modern Freight Management System connects the dots between transport, warehousing and finance. Here are the key features that make it essential for efficient logistics operations:
Operations Management
An FMS acts as a central command centre for all freight activity. It brings quoting, dispatch and delivery management into one system, reducing manual work and errors while improving accuracy and accountability.
Shipment Tracking & Visibility
With real-time status updates and exception alerts, businesses always know where their freight is and when it will arrive. An FMS provides proactive notifications for delays or disruptions, improving customer communication and satisfaction.
Carrier Management
Choosing the right carrier for each job is critical. A good FMS compares carrier performance, rates, and service levels to ensure the best option every time. It also simplifies rate card management and contract tracking.
Rate Comparison & Freight Optimisation
An FMS analyses carrier pricing, service levels, and delivery options to ensure every shipment is booked in the most efficient and cost-effective way.
Document & Compliance Automation
Bills of lading, manifests, Proofs of Delivery and customs forms are generated automatically, saving admin time and ensuring compliance with freight regulations.
Reporting & Analytics
From delivery performance and DIFOT to carrier spend and route efficiency, advanced analytics transform freight data into actionable insights. Managers can make smarter, data-driven decisions to continually improve logistics operations.
Cost Management & Reconciliation
Freight invoices are automatically checked against agreed rates and shipment data to identify overcharges or discrepancies.
💡 MachShip users identify tens of thousands of carrier invoice discrepancies every month — turning lost revenue into cost recovery opportunities.
Benefits of Using a Freight Management System
An FMS isn’t just a back-office tool. It’s a strategic asset that creates measurable business impact.
Reduced Freight Costs
Automation and smart rate management eliminate unnecessary expenses. By comparing carrier rates in real time, businesses consistently secure the best possible price per consignment.
Improved Delivery Performance
Centralised visibility allows faster response to exceptions, helping to prevent missed deliveries and maintain DIFOT targets.
Enhanced Visibility
Live tracking across all carriers keeps operations, customer service and finance teams aligned on shipment status, reducing internal communication friction.
Simplified Compliance
Automated documentation ensures adherence to carrier, customs, and Chain of Responsibility (CoR) requirements, minimising legal and operational risk.
Scalability & Growth
A cloud-based FMS grows with your business — adding new carriers, locations, or integrations without disruption.
Better Customer Experience
When deliveries arrive on time, data is accurate and updates are proactive, customers notice. A reliable FMS helps strengthen long-term client relationships.
Freight Management Systems in Australia
Australia’s freight industry faces unique challenges — long distances, regional networks, and strict compliance standards. A robust FMS supports Australian businesses by integrating directly with local carriers, addressing regulatory requirements and improving operational agility.
Local advantages include:
- Seamless integration with major carriers such as Australia Post, Border Express, and StarTrack.
- Compliance automation aligned with National Heavy Vehicle Regulator (NHVR) guidelines.
- Visibility over interstate and intrastate freight movements across Australia and New Zealand.
- Flexibility to manage multiple carrier types (parcel, pallet, bulk and linehaul) in one system.
💡 MachShip was built in Australia, for Australian freight. Our platform connects over 500 carriers and technology partners to help logistics teams operate faster, smarter and with complete visibility.
Freight Management System vs Other Logistics Software
Understanding where an FMS fits within your wider tech stack helps ensure the right investment.
System | Core Focus | Key Difference |
|---|---|---|
Freight Management System (FMS) | Multi-carrier rate management, booking, tracking and invoicing | Designed for freight cost control and operational efficiency |
Transport Management System (TMS) | Fleet routing, driver management and dispatch | Focuses on owned transport assets rather than carrier networks |
Enterprise Resource Planning (ERP) | Finance, inventory, procurement, HR | Manages overall business processes but not detailed transport operations |
In many organisations, these systems work together, with the FMS acting as the freight layer that connects transport execution to business data.
Choosing the Right FMS for Your Business
When evaluating freight management systems, consider both the functionality of the software and the expertise of the provider. Here’s what to look for:
✅ Strong integrations — with ERP, WMS, and eCommerce platforms
✅ Real-time visibility — tracking, notifications, and performance dashboards
✅ Local carrier coverage — extensive Australian and New Zealand integrations
✅ Ease of use — intuitive interface and reliable onboarding support
✅ Transparent pricing — scalable plans without hidden fees
✅ Trusted support — responsive local team and ongoing account management
If you’d like a deeper comparison, explore our guide: What to Look for in an Effective Freight Management System
See How MachShip Simplifies Freight Management
Ready to see how a Freight Management System can transform your logistics operations?
MachShip helps brokers, 3PLs, retailers, and enterprises:
- Automate freight quoting, booking, and invoicing
- Gain visibility across every carrier and shipment
- Save time on manual administration and reduce cost-to-serve
Book a Free Demo and see how MachShip makes freight management faster, easier and more accurate.
FAQs About Freight Management Systems
What does a Freight Management System do?
An FMS manages the entire freight process, from quoting and booking to tracking and reconciling carrier invoices. It eliminates manual data entry, improves accuracy and provides clear oversight of logistics performance.
How does an FMS save money?
It reduces freight spend by comparing carrier rates, identifying overcharges and improving operational efficiency through automation.
Is a Freight Management System different from a TMS?
Yes. A TMS focuses on managing transport fleets, while an FMS manages freight operations across third-party carriers. Many businesses use both, with the FMS handling multi-carrier visibility and reconciliation.
Can small and medium businesses use an FMS?
Absolutely. Cloud-based FMS platforms like MachShip are scalable, allowing SMEs to automate freight tasks, improve delivery accuracy and access carrier integrations without enterprise-level costs.
Does MachShip integrate with my carriers and systems?
Yes. MachShip integrates with over 500 Australian and New Zealand carriers and connects seamlessly with ERP, WMS and eCommerce systems. This provides your business with complete visibility and control, from quote to delivery.