Even if you know the basics and benefits of implementing a transportation management system (TMS), you may still question if it’s the right move for your business. Small and medium-sized businesses are often left out of the digital transformation when solutions are overly expensive or complex. And I understand—why complicate business if everything is running fine as is?
I do know from experience that SMEs miss out on a lot of beneficial technology due to the myth that digitalization is mainly for large, very lucrative multinationals. So, is a TMS right for your business?
Here, I’ll answer frequently asked questions about TMS solutions that I hope will demystify the topic and help you make this important decision.
The transportation solution landscape is a labyrinth of abbreviations and various applications. If it has been difficult to find what you’re looking for, you can perhaps find solace that you are not alone! Let me try to clear some of the fog around different solutions that are commonly confused or overlapping.
Historically, many logistics operations have opted to outsource the freight audit and payment processes. A significant driver behind that has been reduced administrative burden and the allocation of in-house resources to more proactive tasks. However, more and more companies are now considering insourcing, and potential clients that earlier had too low of freight spend to motivate audit and payment services are now actively looking to set it up. So, what has changed? The short answer is digitalization, along with a few more factors that are contributing to this switch.
A common desire with transport management application buyers is that they want to pay as they grow. There are many reasons for that, and they are usually soundly motivated by budget constraints, project scope constraints and differing ambitions within the organization. But fear can also play a large part.
These constraints often lead to compromises on system solutions that can come back and bite hard once the first project phase is completed. It is therefore important to consider some aspects that may extend beyond your immediate project horizon.
I’ll end with a few questions for you to consider when seeking out the best road to digital, automated transportation management.
This text was originally published 26 October 2021 and last updated 12 April 2022.