Every term you'll encounter while evaluating and using carrier TMS software, explained in plain language.
API
Application Programming Interface. A set of protocols that allow different software applications to communicate. In TMS, APIs enable integrations with ELDs, load boards, accounting software, and custom tools.
BOL
Bill of Lading. The primary document in a freight shipment that serves as a receipt, a contract of carriage, and a document of title.
Backhaul
A return load that a truck carries on its way back from a delivery, reducing empty (deadhead) miles.
Cloud-Native
Software built from the ground up for cloud infrastructure, as opposed to on-premise software adapted to run in the cloud. Cloud-native TMS platforms like Strivie offer automatic updates, no hardware requirements, and anywhere access.
Deadhead
Miles driven with an empty trailer. Reducing deadhead is one of the primary ROI drivers of modern TMS platforms. AI-powered TMS can reduce deadhead by 15-23%.
Detention
Time a truck spends waiting at a shipper or receiver beyond the allotted free time. Detention fees compensate the carrier, and TMS platforms can track detention patterns to inform rate negotiations.
Dispatch Board
The central interface in a TMS where dispatchers assign loads to drivers and track shipment status. Modern dispatch boards are visual, drag-and-drop interfaces; legacy systems often use grid/list views.
EDI
Electronic Data Interchange. Standardized electronic communication format used between carriers, shippers, and brokers. Common EDI transactions include 204 (load tender), 214 (shipment status), and 210 (invoice).
ELD
Electronic Logging Device. A device that records a driver's Hours of Service (HOS) electronically. ELD integration is a critical TMS feature — native integrations pull real-time HOS data into dispatch decisions.
Factoring
Selling accounts receivable (invoices) to a third party at a discount for immediate cash. Many small carriers factor freight bills to manage cash flow. TMS integration with factoring companies streamlines this process.
FMCSA
Federal Motor Carrier Safety Administration. The US agency responsible for trucking regulations, including ELD mandates, HOS rules, and carrier safety ratings.
HOS
Hours of Service. Federal regulations limiting how long commercial truck drivers can drive and work before mandatory rest. TMS platforms use HOS data from ELDs to inform dispatch decisions.
IFTA
International Fuel Tax Agreement. A tax collection system among US states and Canadian provinces that simplifies fuel tax reporting for carriers operating across state/provincial lines.
Lane
A recurring freight route between an origin and destination. Lane analysis — tracking rates, volumes, and profitability by lane — is a key TMS analytics feature.
Load Board
A marketplace where freight brokers and shippers post available loads and carriers search for freight. DAT and Truckstop are the two dominant load boards. TMS integration with load boards saves time finding and booking freight.
LTL
Less-Than-Truckload. A shipping method where freight from multiple shippers shares space on one truck. LTL operations require TMS features like consolidation logic, multi-stop routing, and complex billing.
OCR
Optical Character Recognition. Technology that converts images of text (like scanned BOLs) into machine-readable data. AI-powered OCR in TMS mobile apps (like Strivie's) automates document processing.
On-Premise
Software installed and run on the carrier's own servers and hardware, as opposed to cloud-hosted software. On-premise TMS (McLeod, Trimble) requires IT staff and hardware investment.
POD
Proof of Delivery. Document confirming that freight was delivered to the consignee. Digital POD capture via TMS mobile apps has largely replaced paper PODs.
Rate Con
Rate Confirmation. A document confirming the agreed-upon rate and terms for a load between a carrier and broker/shipper.
Settlement
The process of calculating and paying drivers and owner-operators for completed loads. Includes base pay, accessorials, fuel advances, deductions, and benefits. A critical TMS function for carriers with owner-operator workforces.
TMS
Transportation Management System. Software that helps carriers plan, execute, and optimize freight transportation. Core functions include dispatch, driver management, compliance, billing, and analytics.