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Strategies and Best Practices for Successful Transportation Management System Selection.

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Strategies and Best Practices for Successful Transportation Management System Selection

One of the most popular reasons behind freight shippers implementing a transportation management system (TMS) is for the ROI. That’s clearly an essential piece of the puzzle for freight shipping companies, but there is more they need to consider. While it won’t sound as appealing as a proven ROI, another key influence driving the TMS industry is cloud-based shipping software.

Businesses decrease their freight shipping spend to save money through the TMS. The TMS helps with carrier selection for cheapest rates with efficient shipping speeds, freight consolidation, optimized routing, and more. Over and over freight shipping companies have found that TMS shipping software does save money shipping. Because ecommerce keeps growing, it’s not surprising that the TMS market continues to grow, as well.

Strategies for Buying a Transportation Management System

The first thing to do is to evaluate the TMS. It is critical to consider the details about the needs of your freight shipping business, and how particular TMS solutions will work to resolve those issues. You have to consider what features and functionality are important to your current shipping operations, along with what they’ll be in the future when you analyze your freight shipping operations. Freight shipping businesses need to understand what the strengths and weaknesses are, because every supply chain management strategy has them.

TMS buyers should only modify the software when it’s necessary. There are typically options for personalization with modern cloud-based transportation management systems. When freight shipping businesses have very specific software needs not offered with the basic software functionality, this could be useful. You need to note, however, that the more customizations you make, the longer the implementation time, the more confusing the software is to use, and the more it costs. Compared to the basic package, adding additional modification charges will reduce the ROI.

Desirable TMS Trends

A big trend we already mentioned is cloud-based transportation management systems. The TMS industry is making a strong move in the direction of SaaS TMS shipping software. It has faster execution, and it’s less expensive, but cloud-based options offer the same functionality and options as in-house shipping software. Freight shipping businesses can take the money they would have put into an IT department into other parts of their supply chain in addition to the savings and ROI provided by cloud-based TMS solutions.

While looking to implement a TMS, freight shipping companies should embrace advancements in shipping software. Shipping software should offer innovative solutions to optimize supply chains and cut shipping costs, as freight shipping is getting more complex and difficult. The shipping data and analytics that a transportation management system supplies are important for making better business choices.

Finally, it’s important to think globally about TMS for freight shipping companies. Around-the-world shipping is becoming more prevalent for companies. Shipping software that’s equipped to handle all their shipping needs is what freight shipping companies need to make use of. Software that TMS vendors offer should have capabilities for global customer support and shipment management.

Deciding on a TMS

The market is driven by proven ROI and cloud-based TMS shipping software. Freight shipping businesses are implementing transportation management systems more frequently, because it’s almost a required supply chain management tool. There’s lots of criteria to consider before selecting the shipping software you’ll use. It should not be taken lightly. Consider advancements in cloud-based technology, ROI, current and future supply chain and freight shipping needs, and other industry developments before selecting a TMS. Once you have carefully considered your choices, all the benefits and savings will quickly follow.

Strategies and Best Practices for Successful Transportation Management System Selection

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