4 Factors to consider before choosing a TMS software
Supply chain professionals face a daunting decision when selecting the right transportation management system (TMS Software) for their organizations. With several entrants joining this space recently, it has become more difficult than ever to decide on an appropriate solution that is also cost-effective and suits your needs well enough before choosing one with these features or opting out of using any at all if need be – which would mean giving up some key benefits altogether!
Here are the four factors you should consider before you choose a Transport Management system for your supply chain.
1. Think ROI
It’s essential not to rush when selecting a transportation management system (TMS). Companies should establish realistic timelines during the decision-making process. The objective is always to choose a solution that could scale as the business requirements expand and lasts for five to ten years. The solution should also be able to provide an ROI under 15 months and saves around 3%-7% on transportation costs; these benefits are important, so you needn’t worry about rushing your choice just because there’s been some overlap with another vendor.
Therefore, the most crucial factor to note here is finding the best system fit. Existing relationships don’t necessarily make for a more straightforward integration process either — one TMS company being 10% higher or lower in cost than another could lead you down the path of making wrong choices based on irrelevant information — it doesn’t really matter how much higher/lower their price might seem compared to one another, especially if it is by a negligible margin.
2. Look at your scenarios, not just the product features
When weighing new TMS options, getting hung up on features is tempting. However, organizations should avoid emphasizing the number of buttons or other technical specifications because this can distract from key considerations when deciding which system best suits your business needs.
So, what should you do alternatively? Make use of your “super users” — the team that will actively be using the TMS once it is deployed. These individuals could be in charge of determining priorities, defining problems and developing a business case for any new initiatives or changes needed within your company so that you can make informed decisions about them.
The best way for a company to do this is by developing scenarios based on what they might need to downpour future projects. These testing grounds help vendors show off features but at the same time, reveal their systems’ capabilities when supporting an organization’s process – something every firm must consider before purchasing software!
Taking the right amount of time and involving people in an implementation process tailored to their skills and experience levels allows you as much chance at success.
3. Ask for case studies
Instead of identifying a date and pushing toward it, organizations should begin with the details and work to determine an appropriate timetable. The new TMS can make significant changes on both the organizational side as well as process improvement initiatives within businesses themselves- so this requires careful planning throughout all levels for a successful implementation!
Valuable information can only be obtained by asking the right questions. Make sure you are getting a thorough understanding of what your potential vendor might offer, and make them work hard for it! A great way to get an idea if they meet specific needs or address scenarios unique within our industry is through case studies: ask vendors about their experience with other companies who have similar goals as yours. This will give you insight into how the TMS software can support you and know whether this solution would fit well within your organization’s current infrastructure.
4. TMS software is not for everyone
Companies often purchase TMS platforms that are more complex than they need. They then struggle to figure out how best to use the system, leading them down an expensive path without any clear benefits for their organization’s productivity or efficiency.
In addition, many studies have been done on this topic, including studies by Gartner, BCG, etc. One common theme among most research findings is “too much choice” – customers seem happiest when faced with fewer options that answer their most specific questions. In fact, many companies might not need expensive and extensive TMS software but a cost-effective, customized solution that could fit their business needs.
Alternatively, here’s what we would suggest
Suppose you want to start with an automation solution that best fits your business needs and requirements. In that case, you should explore an easy-to-use, customizable, multi-modal logistics solution, which is also highly scalable as and when your business grows. Not to mention, such SaaS solutions are the easiest to deploy, hardly require any training to start using and are highly intuitive. These affordable solutions make it easier for medium and smaller companies to optimize their supply chain efficiencies cost-effectively.
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