March 13, 2025 - 8 minutes read
The Importance of a Multimodal TMS in Today’s Complex Global Logistics Environment
Supply chains aren’t static—they’re actually evolving faster than ever in response to geopolitical instability, unpredictable weather patterns, and evolving trade policies. In response to this litany of uncertainty, companies are expanding vendor networks, nearshoring operations, and diversifying transportation modes to keep goods moving. Of course, as supply chain and logistics networks become more diverse, they become more complex and, consequently, more difficult to manage and monitor effectively.
So, how do you maintain visibility across multiple carriers? How do you control costs when rates fluctuate daily? And how do you ensure shipments arrive on time when the next supply chain crisis is always looming?Transportation management systems (TMS) are designed to help organizations oversee logistics operations, but many legacy systems lack the integrated multimodal capabilities needed in today’s complex environment, forcing businesses to juggle multiple platforms just to track shipments across air, ocean, rail, and road. A multimodal TMS eliminates these silos, centralizing operations into a unified system that improves visibility and enables smarter decision-making.
In this blog, we’ll explore the increasing complexity of global logistics, the role of a multimodal TMS, and how businesses can leverage this technology to stay agile in an unpredictable world.
The growing complexity of global logistics
Global supply chains have been hit with an unprecedented level of disruption, with volatility increasing by an astounding 183% since 2019. And these disruptions have exposed alarming vulnerabilities in traditional supply chain models, leading to an estimated $1.6 trillion in unrealized revenue opportunities annually.
At the same time, the e-commerce boom has effectively reshaped customer expectations for delivery service. Businesses and consumers alike now expect faster deliveries, real-time tracking, and high-level service across regions—all while logistics providers contend with consistent capacity shortages and unpredictable freight rates. The pressure to deliver cost-effectively and without delay has never been higher.
To overcome these challenges, more companies are diversifying their supply chains, including adopting mixed-modal transportation models for greater flexibility. But managing an increasing level of complexity in today’s market demands the right technology. A multimodal TMS provides the visibility, agility, and control needed to coordinate shipments, reduce spend, and mitigate the impact of disruptions across multiple transportation modes.
What is a multimodal TMS?
A multimodal transportation management system (TMS) is a centralized platform that allows businesses to plan, execute, and track shipments across multiple transportation modes—road, rail, air, and sea—within a single system. Unlike traditional TMS solutions that were designed for single-mode management (e.g., trucking or ocean freight only), a multimodal TMS unifies shipping options and activities to give companies the flexibility to shift between transport modes based on cost, speed, and capacity.
Think of an advanced, multimodal TMS as mission control for logistics—coordinating shipments across numerous carriers, selecting the most efficient routes, and providing real-time tracking for every leg of the journey. Beyond routing, it also automates processes like rating, booking, invoicing, and compliance management to maintain a single record of truth from origin to destination. And with a centralized hub for shipment data, businesses can eliminate silos to make informed decisions and scale operations with ease.
Why a multimodal TMS is essential in modern logistics
In today’s turbulent and uncertain environment, it’s not unusual for logistics teams to be constantly juggling disconnected systems, manually reconciling shipment data, and scrambling to find solutions when disruptions hit. A multimodal TMS changes that by bringing every mode of transport into a single, unified platform. Instead of working reactively, businesses can make informed decisions in real time and create a more resilient supply chain. But to truly understand its impact, let’s look at the ways a multimodal TMS solves common logistics challenges.
End-to-end visibility across all modes
Shipment tracking is one of the most frustrating pain points in logistics. Freight booked outside a company’s TMS, inbound shipments handled by suppliers, and 3PL shipments often create visibility gaps. These blind spots lead to wasted time chasing down updates and delayed responses to stakeholders. They also make it incredibly difficult to respond to issues and disruptions during transit, as companies are usually informed too late.
Cutting-edge transportation management system solutions eliminate these issues by centralizing all shipment data, regardless of mode or carrier. With end-to-end supply chain visibility, logistics teams can proactively manage exceptions, minimize the impact of delays, and improve communication with customers and internal teams.
Cost optimization and route efficiency
Managing freight costs is an ongoing challenge for logistics teams, especially when transportation decisions are made without full visibility into available options. Many companies still rely on manual processes, outdated spreadsheets, or rigid ERP systems to select carriers, compare rates, and analyze transportation spend. Without an integrated system, they struggle to identify inefficiencies, which ultimately leads to higher-than-necessary freight costs and late shipments. The lack of centralized data also makes it difficult to track contract compliance, enforce routing guides, or negotiate better rates with carriers.
A multimodal TMS eliminates these issues by aggregating real-time pricing, historical performance, and capacity data across all transportation modes. Logistics teams can compare costs side by side to select the most cost-effective and reliable shipping options based on transit time, carrier performance, and fluctuating freight rates. By optimizing mode selection and automating carrier decisions, companies can cut unnecessary transportation costs without sacrificing speed or reliability. More advanced systems also integrate AI-driven analytics to help shippers optimize mode selection and cut unnecessary freight expenses.
Resilience in the face of disruptions
Supply chain disruptions aren’t a question of if—they’re a question of when. Whether it’s port congestion, extreme weather, or labor strikes, logistics teams need the flexibility to pivot between transportation modes without scrambling for a backup plan. Without an integrated multimodal solution, teams are forced to manually seek alternatives, resulting in further delays, increased costs, and frustrated customers. The inability to pivot quickly leaves businesses vulnerable, with disruptions rippling across the entire supply chain.
A multimodal TMS helps businesses to react in real time, quickly shifting between carriers or modes to keep shipments moving. By providing immediate access to alternative transport options, companies can avoid costly delays and improve supply chain resilience even in volatile conditions.
Automated compliance and documentation management
Navigating global trade regulations requires precise documentation and strict compliance with international laws, yet many businesses still rely on manual paperwork, email-based processes, and disconnected systems. These outdated methods increase the risk of customs delays, non-compliance penalties, and costly errors, especially when dealing with multiple regions, trade agreements, and regulatory bodies. Missing a single document or failing to meet a regulatory deadline can lead to shipment holds and substantial fines, creating major setbacks.
A multimodal TMS automates and centralizes compliance workflows to ensure import and export shipments meet regulatory requirements and that documentation is complete. Advanced systems digitize and store all shipment-related documents, making it easy to track requirements and generate reports for audits. With built-in regulatory intelligence, businesses can stay ahead of changing trade laws, apply the correct tariff codes, and prevent costly mistakes.
The reality is that logistics teams don’t just need another system—they need a functional, adaptable solution that puts them in control. Without it, they’re stuck fighting the same battles: limited visibility, rising costs, and no way to react fast enough when things go wrong. A multimodal transportation management system has the ability to change how companies compete and scale in a world where supply chain complexity isn’t going away.
What to Look for in a Multimodal TMS
Managing multimodal freight is already complex—a TMS shouldn’t make it harder. The right system should simplify execution, connect siloed data, and give logistics teams the control they need to make informed decisions without wasting time. Here are five essential capabilities to look for:
- Unified Shipment Execution: A multimodal TMS should eliminate the need for multiple carrier portals and fragmented systems. By centralizing booking, tracking, and shipment management across air, ocean, rail, and road, it allows faster and more effiecient execution from start to finish.
- Real-Time Data and Event Monitoring: Shipment delays and disruptions are inevitable, but they shouldn’t derail operations. A TMS with real-time tracking and automated alerts helps logistics teams anticipate issues and respond quickly to minimize their impact.
- Carrier and Supplier Collaboration: Disjointed communication between internal teams, suppliers, and transportation means logistics teams often spend too much time responding to status update requests. A TMS should facilitate stronger supply chain partnerships through direct data-sharing, keeping everyone aligned throughout the shipment lifecycle—without endless email chains and phone calls.
- Automated Audit and Cost Controls: Without enough oversight, freight costs can spiral due to billing discrepancies, contract non-compliance, and poor routing decisions. A TMS with automated auditing tools helps enforce routing guides, track invoice discrepancies, and limit unnecessary transportation spend.
- Scalability and System Integration: A multimodal TMS must integrate with existing enterprise systems, including ERPs, warehouse management systems, and external carrier networks. Bi-directional data exchange ensures continuity as supply chains evolve and expand.
A multimodal TMS is truly the foundation of an agile and cost-effective supply chain. Companies that invest in the right technology now will be better equipped to navigate future disruptions and opportunities.
Meet Agistix: A Multimodal TMS
Modern supply chains simply can’t run on outdated systems and disconnected processes. Agistix TMS is built for logistics teams that need a smarter, more efficient way to manage multimodal freight—bringing shipment execution, real-time visibility, and stakeholder collaboration into a single, powerful platform.
Unlike rigid, one-size-fits-all solutions, Agistix TMS adapts to the needs of complex, fast-moving supply chains. It works as a standalone system or integrates with the Visibility and Microsites solutions to provide a comprehensive and powerful platform for managing global freight operations. With direct data-sharing across carriers and suppliers, automated workflows, and centralized access to shipment details, Agistix eliminates the annoying inefficiencies that slow logistics teams down.
If you’re ready to take control of transportation management, book a demo to see how Agistix can transform logistics operations.
