Key Questions to Ask When Selecting a Transportation Management System (TMS)

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Most companies, especially ones who do not currently have a Transportation Management System (TMS) may not know what to ask when vetting providers. Here are some of the best questions we get to make sure that the TMS works for your business today, but also scales with you for tomorrow.

1. What systems are you integrated with?
For many companies, a TMS needs to fit into your existing infrastructure, so it is important to understand any pre-built integrations into the TMS. Especially with most companies having strapped resources for IT, having flexibility or pre-built integrations will help tremendously. One thing we love about Kuebix TMS is the API connectivity giving you flexibility in how you integrate.

2. How long will implementation take?
This can vary based on if it is a TMS only solution, if there are integrations, how carriers are set up and other factors. But understanding whether the implementation takes weeks or months will help you better align with your business goals and your own time.

3. How will this TMS work across departments?
Transportation impacts every facet of business from Accounts Payable departments paying carrier invoices to warehouse managers scheduling shipments. So understanding user roles, how user friendly the platform is and understanding what is important to those teams before you begin the TMS selection process will help. We usually recommend – Accounting, Procurement, Customer Service, and Logistics/Operations/Transportation all being consulted prior to the TMS selection process to understand what is important to those specific groups.

4. How do I load my carrier rates?
If you have carriers already set up, understanding how you can connect with them is critical. Most LTL carriers have a pretty standard integration setup (API, EDI), but for some smaller truckload or specific modal carriers, they may not be as sophisticated, so understanding your connectivity options is key.

5. If I have the occasional spot shipment, can the TMS support that?
Other than contracted carrier rates, most companies will have the occasional spot shipment. Or it may not be your reality today, but in the future if you foresee needing to support the occasional spot quote or shipment, take that into consideration so all shipments can be maintained in a single system vs. having to call a carrier or broker for a one off shipment.

6. How user-friendly is the TMS and what amount of training will be required across my warehouse locations and teams?
Oftentimes, we see companies fall in love with the functionality and capabilities of a highly complex TMS system, only to realize the UI is equally as complex. So if there are a number of teams who will be working in the TMS daily, then being user friendly should also be a high ranking criteria during the decision making process. Kuebix TMS was designed for SMB and mid market businesses to be a user-friendly system.

If the highly complex technology requires a significant amount of training for teams, then understand what the provider is willing to provide by way of training and ongoing support for your internal stakeholder groups.

7. Does the TMS have reporting and dashboard capabilities to easily review and segment the data?
One of the main reasons companies look to deploy a TMS is to have everything in a single place and to better understand transportation spend. This is why having some base functionality for dashboards and reports will help validate the TMS investment back to the business, while giving you visibility into your logistics operations.

8. Can I manage all modes in a singular TMS? Including parcel shipments?
Companies sometimes assume that a TMS that can manage complex LTL and truckload moves, should be able to rate and route parcels, but that is not always the case. We recommend specifically asking questions about parcel shipments. Even if you don’t have a significant amount of parcel shipments today, if there is an ecommerce channel in the future, parts for equipment or future smaller product lines – having a TMS that can rate and route parcels will save you time down the road.

These are some of our favorite questions we get asked around how to select the right TMS provider for today and tomorrow.

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Trends in the Supply Chain and Their Impact on the Transportation Management System Market

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This year has reminded everyone to expect the unexpected – even in the supply chain which is one of the most unflappable industries out there! Covid-19 has disrupted the logistics operations of companies throughout the U.S. Technology is rapidly advancing as new tools and integrations become available and consumer shopping habits have been directly affected in the process. In order to overcome these and many other challenges, companies can leverage the latest supply chain technology and find mutually beneficial opportunities with one another as part of connected logistics networks. Understanding the state of the industry and how it relates to the TMS market is the first step any company trying to ‘weather the storm’ must understand.

We believe Gartner’s recently published research titled Gartner Research: Macro Trends Affecting the Transportation Management System Market offers insight regarding current trends that are influencing the buying process for transportation management systems (TMS) and is a great place for any potential technology user to start with. It’s important that logistics professionals understand these trends as it will empower them to make better informed decisions when selecting technology for their supply chain. 

 

Leverage this report to:

  • •   Evaluate key factors such as usability, ease of implementation, and carrier networks
  • •   Understand important trends shaping the TMS industry
  • •   Identify TMS vendors that bring innovation to a changing marketplace

 

One of the major trends affecting the buying process for transportation management systems is the constant maturing of technology. As technology advances, consumer expectations heighten. Think of it like the “Amazon Effect.” Now that the world knows 2-day shipping is possible, everyone starts to expect this from every retailer, not just Amazon. Factors like user experience and implementation times are becoming more important. TMS providers have to work harder to meet these expectations, but it’s up to the potential buyer to determine whether they will be up and running quickly enough to generate rapid ROI. Additionally, if the TMS doesn’t provide a user-friendly user interface (UI), it doesn’t matter how many bells and whistles the technology has if teams won’t adopt it into their everyday operations.

Nearly all transportation management systems on the market today are cloud-based, even those legacy systems with their main capabilities based in hardware are trying to play catch up. Solutions that are cloud-based make it easier for users to store data and regularly update software. As more digital networks and platforms arise in the transportation industry, providers continue to expand their capabilities and work together to create partnerships and integrations.

Technology is constantly evolving and as a result, shippers are thinking ahead before investing in a TMS. Decision making is no longer focused solely on the software’s current features but rather a combination of its current functionality and efforts to expand partnerships and capabilities. Shippers want a transportation management system that will be able to grow alongside their needs and take on new challenges in an uncertain market.

These trends and their impact on the market are important for shipping companies planning to grow their business in 2021. Understanding the effects of Covid-19, a changing technology landscape and consumer expectations will help any company make the best decisions for their supply chains in the face of uncertainty.

Gartner, Macro Trends Affecting the Transportation Management System Market, 17 September 2020, Bart De Muynck, Brock Johns, Carly West, Oscar Sanchez Duran