Logistics operations can quickly become fragmented when order processing, shipment tracking, and finance are managed in separate systems. Many businesses rely on a Transportation Management System (TMS) for freight scheduling and carrier selection but lack integration with ERP and CRM platforms. This leads to delays, duplicate entries, and limited visibility.
By integrating a Transportation Management System with Microsoft Dynamics 365, organizations gain a unified order-to-delivery workflow. As a Microsoft Solutions Partner, Alphavima helps businesses connect TMS platforms with Dynamics 365 CRM and ERP applications, creating seamless logistics, finance, and customer engagement processes.
Why Integrate a Transportation Management System with Microsoft Dynamics?
1. Centralized Workflow
Combining ERP, CRM, and TMS provides a single source of truth from order creation to shipment delivery.
2. Real-Time Shipment Tracking
A Transportation Management System integration ensures live updates – including carrier details and estimated arrival – inside Dynamics 365.
3. Freight Cost Allocation
Freight expenses are automatically recorded in Dynamics 365 Finance, reducing manual reconciliation.
4. Inventory and Returns Management
Shipment updates flow back to Dynamics 365 Business Central or Finance & Operations, improving inventory accuracy and enabling smoother reverse logistics.
5. Customer Communication
CRM can deliver real-time status updates to customers directly, improving transparency and satisfaction.
Transportation Management System and Dynamics 365 Workflow
A practical workflow of TMS and Microsoft Dynamics 365 integration includes:
Order Creation in Dynamics 365 Sales or customer portal.
Inventory & Pricing Validation in Dynamics 365 ERP.
Shipment Request sent from Dynamics to the Transportation Management System.
Carrier Selection by the TMS, returning optimal rate and scheduling details.
Status Updates (ETA, tracking, carrier info) synced back to Dynamics.
Freight Costs Recorded automatically in Dynamics Finance.
Customer Updates sent through Dynamics CRM with real-time delivery data.
Reverse Logistics handled by the TMS and integrated with Dynamics workflows.
Methods for Integrating Transportation Management Systems with Dynamics 365
1. RESTful APIs
Most TMS platforms like MercuryGate, Descartes, and Shipwell provide REST APIs that connect directly with Dynamics 365 endpoints.
2. Microsoft Dataverse
Dataverse creates a unified layer where CRM, ERP, and TMS data can interact seamlessly.
3. Azure Logic Apps
Azure Logic Apps offer prebuilt connectors and triggers to automate workflows between Dynamics and a Transportation Management System.
4. Electronic Data Interchange (EDI)
For large-scale shipping operations, EDI standards (EDIFACT, X12) enable batch exchanges of orders, shipments, and invoices.
5. iPaaS / Middleware
Solutions like MuleSoft, Boomi, and KingswaySoft act as bridges, connecting TMS with Microsoft Dynamics 365 across hybrid and multi-cloud setups.
Use Cases for TMS and Dynamics 365 Integration
Manufacturing: Manage in-house fleets or coordinate with third-party logistics providers.
Distribution: Automate freight allocation and receive live shipment status.
Retail: Support omnichannel delivery models with smooth returns management.
Logistics Providers: Provide customer-facing delivery updates directly within CRM portals.
Benefits of Integrating Transportation Management Systems with Microsoft Dynamics
Operational Efficiency: Fewer manual updates, faster shipping cycles.
Accurate Reporting: Unified logistics and finance data improves KPIs.
Faster Deliveries: Automated carrier selection and scheduling.
Cost Transparency: Freight allocation tied to financial transactions.
Improved Customer Experience: Real-time communication reduces support delays.
Conclusion
Integrating a Transportation Management System with Microsoft Dynamics 365 bridges the gap between logistics, finance, and customer engagement. From automating shipments to tracking freight costs and returns, businesses gain a comprehensive, real-time view of their supply chain.
At Alphavima, we design TMS integration solutions using APIs, Dataverse, Logic Apps, and middleware, helping organizations improve efficiency and scalability.
Contact Alphavima Technologies to explore how Transportation Management System integration can optimize your logistics operations and customer experience.
Looking to manage logistics smarter with Dynamics 365?
Use Microsoft Dynamics 365 to plan routes, track shipments, and optimize transportation operations from one platform.
FAQs
What is a Transportation Management System (TMS)?
A Transportation Management System (TMS) is software used to plan, execute, and optimize the physical movement of goods. It manages carrier selection, shipment tracking, freight cost allocation, and reporting.
Learn more in Microsoft’s overview of TMS and supply chain integration.
How does integrating a TMS with Microsoft Dynamics 365 help?
Integrating a TMS with Dynamics 365 provides a single flow for orders, shipping, and finance. Shipment updates are visible in CRM, freight costs sync to Finance, and customers get real-time delivery notifications.
For related ERP extensions, see our guide on deploying Business Central extensions.
What methods are available for TMS integration with Dynamics?
Common methods include:
REST APIs for direct connectivity
Microsoft Dataverse for unified data layers
Azure Logic Apps for automation flows
EDI standards for large batch transactions
Explore Azure Logic Apps for more details on integration options.
Who benefits most from TMS and Dynamics 365 integration?
Manufacturers: Better fleet and plant coordination
Distributors: Automated freight allocation and updates
Retailers: Omnichannel delivery and returns
Logistics providers: Real-time updates in CRM portals
For another automation scenario, check how we enabled Power BI CSV exports using Power Automate.
Do I need Dynamics 365 Finance or Business Central for TMS integration?
No, TMS integration can work with both Dynamics 365 Finance and Business Central, depending on your ERP setup. Smaller companies often use Business Central, while larger enterprises integrate with Finance & Supply Chain Management.