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Cloud-Based TMS Kuebix

Why a Cloud-Based TMS is Better

A decade ago, if you wanted a TMS, you had to buy the software and install it within your organization. Today that has changed as more TMSs are moving to the cloud. Transportation management systems (TMS) based in the cloud are being adopted at faster rates than ever before. Industry analyst firm Gartner sees a 15% growth in TMS usage within small- to mid-sized businesses with some vendors reporting more than 20% growth.

So why are cloud-based TMSs growing in popularity?

We can think of 10 good reasons:

  1. Lower Barriers to Entry – Upfront expenditures related to hardware and software are eliminated with a cloud-based TMS allowing businesses of any-size to gain access to the technology. No longer do companies have to fork out hundreds of thousands of dollars on installed software. Instead, with a cloud-based TMS, you pay subscription or usage fees.
  2. Enhancements Made Easy – The cloud-based TMS software provider is responsible for upgrades and enhancements to its solution, which includes maintaining the application and ensuring its availability and reliability. Most application upgrades can be easily deployed automatically, eliminating the need for internal IT staff involvement.
  3. Connectivity – Cloud-based computing enables the TMS to connect to a global group of supply chain trading partners. As more and more carriers, shippers and suppliers connect to this network of trading partners, the ability to collaborate and conduct business with more and more companies brings value to the participants. Under a cloud model, the TMS can become a central marketplace where you connect to a variety of supply chain stakeholders.
  4. Flexibility as You Grow – Cloud-based TMS systems offer lots of flexibility, starting with basic features that can be easily upgraded with additional functionality as your business needs change. Start with the ability to rate, book and track shipments, then add other features as needed – from predictive analytics to freight bill audit/payment and more.
  5. Level the Playing Field – Deploying a cloud-based TMS levels the playing field as businesses of any size have access to a larger variety of rates and carriers, allowing your business a greater chance to get better rates.
  6. Software Always Up & Running – Cloud-based TMS vendors deploy their systems across multiple data centers to ensure 24/7/365 operations. So, no matter if there is a widespread power outage or weather-related event, you will have access to the TMS and your data to ensure you can always get your products out the door.
  7. Fastest Route to Implementation – Cloud-based TMS systems are easy to deploy and easy to use with typical start-up within minutes or a few hours. Some systems offer online how-to videos to help new users begin.
  8. Faster ROI – Cloud-based TMS users get a faster return on investment (ROI) because of the low upfront investment and quicker start-up. You’ll be up and running quicker, making smarter decisions on rates and carriers.
  9. Smarter Shipping Decisions – Smarter decisions can be made by your transportation operations team by leveraging actionable reports and dashboards within a TMS housed on the cloud. Every transaction is captured and can be analyzed for improvements in service levels, freight spend, KPIs and more.
  10. Lower Freight Spend – Using a cloud-based TMS will lower your freight spend, reports say between 10 – 20% on average, because you have more choices of modes and access to more carriers and lanes.

A cloud-based transportation management system like Kuebix TMS offers a wide variety of benefits for shippers. Before you take the plunge with a new cloud-based TMS, use this Complete Buyer’s Guide to figure out exactly what your needs are!

A Clear Industry View

Dan Clark_3274_reduced

Dan Clark, Founder & President, Kuebix

The logistics industry revolution has begun. Technology is empowering supply chain visibility, control and collaboration that was unimaginable just a few years ago. My experience dates back more than two decades when, while working as a supervisor at a major LTL carrier, I spent my days walking the dock and learning everything I could about freight. I quickly worked my way up in the industry and at the age of 28 I was regional director of one of the largest freight divisions in the northeast, and from there became a divisional vice president overseeing 23 terminals.

While at USF group, I helped standardize business process across five different LTL companies and worked with the IT team to develop software applications to automate these processes. Back in 2007, I saw the emergence of cloud technology, knew the impact it would have on logistics, and founded one of the first true cloud-based transportation management systems, Kuebix.

Today, companies are looking more than ever at opportunities in the supply chain to increase efficiencies and bottom line dollars. Over the course of my career, I have met with thousands of companies and almost all of them have shared a common problem – pain points in their shipping process. Many companies outsourced shipping to third party logistics companies (3PLs), which have come to play a huge role in the industry. However, emerging players fueled by technology are challenging their dominance. This kind of disintermediation is not a new phenomenon; we’ve seen the impact on the travel and movie rental industries to name a few. Remember going to Blockbuster on a Saturday night?

Don’t worry, trucking isn’t going anywhere. Until someone invents a device that transports packages through space and time, almost everything will continue to be moved by trucks. However, what is changing is the inefficiency of an old school industry.

I believe that complete supply chain visibility is paramount for business success in this evolving marketplace. In Supply Chain 20/20, I offer my industry knowledge, opinions, insights and predictions as we witness the evolution of logistics. I hope that you will join the conversation by sharing and commenting on my posts. The time is now for the logistics industry to change. Get ready to embrace the change or be left behind!