Choosing a TMS Today: Measure Five Times, Cut Once?

The wrong choice can ruin a company. For years, businesses have followed the old proverb “measure twice, cut once.” By the time all legal reviews and time negotiations are finally completed, several months have already passed, and large sums of money have been spent. Today, shippers mostly focus on improved visibility, efficiencies, and execution. For them, a modern transportation management system (TMS) can be operated and help them save money within days or weeks. When choosing a TMS, it’s important to differentiate between the nice to have and must have. Some of the must-haves for businesses are the following:

User-friendly

Customers are looking for an intuitive, efficient and effective user interface. Supply chain professionals have to find user-friendly business applications. This user-friendliness can improve their speed, which is vital for those who don’t want to risk losing a delivery to a competitor or for those who wish to access capacity immediately. Many transportation management systems are incorporating ease of use in their interfaces.

Support and Security

Companies need to understand the level of security and support offered by the TMS vendor. They have to ask the software vendor about their security processes. Cybercrimes are now rampant, so businesses have to protect themselves against these threats. The TMS should also offer excellent customer support network. TMS users want to make sure that the provider provides the infrastructure and bandwidth to manage large volumes of data.

Connectivity

TMS connectivity allows divisions and departments to work together and share information. It can also help them determine and improve areas of non-compliance to save costs and improve the efficiency of their processes. For companies that are planning to use their TMS to carry out shipping orders and choose carriers, their system should be capable of connecting flawlessly with thousands of carriers. This can help companies identify which carriers meet their needs. They can use their TMS to create a carrier scorecard and use their own data to measure onboarding, rating and service levels.

End-to-end Execution

Shippers should evaluate the ability of the TMS to execute end to end. The software should be able to choose the right carrier, follow through and monitor all orders, facilitate payments to carriers and should be able to provide route guide compliance and consolidation,

After securing these must-haves, you can now proceed to the features that are nice to have. Some features may be beneficial for you but are not critical for your business. Examples of such tools include access to various private and public bid boards and procurement tools to manage carrier bids.

When choosing a TMS, consider your processes. Make sure you choose one with features that are critical to your business operations. Consider your short-term and long-term goals. Think about your broader business goals. Do you have plans to expand into a new market? If a vendor has a partnership mentality and a business-minded team, you can ask them to help you determine what you really need and how the TMS fits into that goal. Ask the vendor for their customer satisfaction rate and list of successful and failed projects. This can help you quantify their soft skills.

You also need to consider the cost of ownership. Some vendors may offer a low-cost solution, but you may need to depend on them for support and changes later on. Your expenses will pile up, and this will have a negative effect on your bottom line. Look beyond the cost of the TMS and find a system that allows you to adjust it to your business needs without asking for help from the vendor’s support or development team. This will help you keep costs lower and guarantee better responsiveness to the demands of your customers. Visit https://logistician.com for more information.