A Transport Management System works in conjunction with an Enterprise Resource Planning (ERP) system by integrating transportation data with other business functions such as inventory management, order processing, and customer service. The integration allows for seamless data flow between the two systems, enabling a holistic view of the supply chain. For instance, when an order is processed in the ERP, the TMS can automatically create a shipment plan, select the best carrier, and schedule the delivery. This ensures that transportation activities are aligned with broader business objectives, improving overall efficiency and reducing the risk of errors.