Posts

How to Choose the Right TMS for Your Company

How to Choose the Right TMS for Your Company

Choosing the right transportation management system for your company can seem like a daunting task, but it doesn’t have to be difficult. Whether you’re a first-time TMS buyer or a long-time user looking for an upgrade, all you need to do is arm yourself with the right questions to ask before starting your TMS search.

Answering These Questions Will Help You Find the Right TMS for Your Company

Step One: Understand Your Business

Kuebix TMS SolutionThe best place to start is to understand how your company operates and could most efficiently leverage a transportation management system. Having a complete understanding of how your company runs its logistics operations will give you a solid foundation to work from. Before doing research on specific TMS systems available, make sure you know how your logistics operations run.

  •      ☑     How many modes of transportation does my company ship with?
  •      ☑     How many shipments does my company make per month?
  •      ☑     Do we operate out of multiple locations?
  •      ☑     Are there multiple people at my company involved in the shipping process?
  •      ☑     Do we use an ERP system to streamline orders?
  •      ☑     Is routing and shipment consolidation a challenge right now?
  •      ☑     How many invoices do we audit each month?

Click here to discover which solution is right for your business: https://www.kuebix.com/productrec/

Step Two: Understand Your Goals

Understanding why you need a transportation management system will ensure that you implement a TMS that is right for your business. Ask yourself these questions to prepare yourself with a list of “must-haves” before you start researching the industry.

  •      ☑     What type of ROI do I need to see from a TMS? What’s most important:
    •      •     Time savings
    •      •     Bottom-line savings
    •      •     Error mitigation savings
  •      ☑     Does the system need to be highly user-friendly for non-technical users?
  •      ☑     Will this technology need to be able to grow and adapt as our business needs change?
  •      ☑     How much do we want to spend on implementation? How much on subscription costs?
  •      ☑     How quickly do we need to be up and running with this new technology?
  •      ☑     Will we need to integrate to any internal systems?
  •      ☑     Do we want to attain full visibility to all of our shipments?
  •      ☑     Are we looking for a way to find additional spot volume when our regularly negotiated rates don’t cover a load?

Step Three: Understand the Market

Now that you have a solid understanding of your operational functionality laid, you’ll quickly be able to eliminate unsuitable types of transportation management systems. For example, some systems brand themselves as complete TMS solutions, but are in reality, only rate aggregators. If you are looking for a place to conduct all of your logistics operations, you’ll know right away that a simple solution like a rate aggregator won’t work for your company. Alternatively, you may be able to eliminate other TMS solutions that require you to purchase all available features, even ones you won’t use. This will help to narrow down the field quickly.

In your day to day life you probably rely on word-of-mouth and review sites to make important purchases. Buying a TMS shouldn’t be any different. Make sure to check out reputable review sites and research from 3rd party consultancies. These will give you unbiased accounts of the top TMS options available on the market.

Check out these resources to discover some of the leading TMS vendors:

Step Four: Understand a Specific Transportation Management System

10 Essential Questions Datasheet Image Kuebix TMS

Once you’ve reviewed some of the leading research and review sites to discover which TMS solutions have the best reputations for success, you’re ready to dive into researching specific TMSs. Below is a list of questions you should answer when evaluating a specific transportation management system. These questions will help you choose the right TMS for your business.

Download this list as a PDF to have with you during your evaluation process.

  •      ☑     How do current customers rank this TMS on review sites? (Gartner Peer Insights, Capterra, G2)
  •      ☑     What will the implementation process look like and what is the expected turn-around time?
  •      ☑     Will this TMS work for teams across my company? (Logistics, sales, customer support, etc.)
  •      ☑     Are there benefits for being a member of this TMS’ community such as a spot market?
  •      ☑     Will this TMS save me time with a user friendly UI and simple processes?
  •      ☑     Does this TMS have a history of creating outstanding ROI for its users?
  •      ☑     Does this TMS give preferential treatment to any carriers or brokers?
  •      ☑     Will this TMS be able to adapt and grow alongside my business?
  •      ☑     Can I manage all modes of transportation with this TMS?
  •      ☑     Is this TMS cloud-based or a monolithic, in-house model

By following these four steps you will be in the best position to choose the TMS that is right for your business. Click here to contact Kuebix and we would be happy to work with you directly to help you understand your company’s specific needs. After all, the decision to implement a transportation management system can have positive ramifications throughout your entire company and we want to make sure you get the most benefits from your final choice.

Kuebix TMS

How to Buy a TMS

The combination of the capacity crunch and new government regulations are causing transportation costs to soar – and are expected to continue this trend into the future. In today’s market, shipping is one of the biggest expenses for any shipper, growing at a rate of over 5% per year, depending on the lane. Implementing a TMS solution can bring a business the freight savings and intelligence they need to keep transport costs as low as possible.

A broad range of TMSs exist, ranging from cloud-based to on-premise, automating freight bill audit and pay, streamlining execution and optimization, integrating with disparate systems, analyzing data for performance monitoring, and on and on. With all these features and options, how does a company go about buying a TMS system?

First of all, the goals for deploying a TMS need to be determined – is the goal to cut shipping costs, improve customer service, become a preferred shipper, consolidate loads, etc.? Do these goals align with the corporate strategy? They should!

Next, make sure that the TMS is easily scalable to meet current business needs and those of the future. Additional features and functions should be able to be easily added without having to start from scratch. A spot market should be accessible for volume quotes and the system should also easily integrate with other software to extend the value of the technology.

A TMS should offer the following:

  • ·       Automatic rating, booking and tracking of shipments, managing carriers and communicating with shippers and customers in real-time
  • ·       A network of carriers incorporating all modes with the ability to consolidate and optimize shipments
  • ·       A wide variety of reports and dashboards to monitor cost, shipping status and service levels
  • ·       Management of the carrier bid process from initial set up to tendering of shipments
  • ·       Extensive analytics to manage performance in real-time
  • ·       A quick implementation time and return-on-investment (ROI)
  • ·       Integration with enterprise systems and 3rd party applications
  • ·       The ability to track and trace any shipment in real-time, anywhere in the supply chain
  • ·       The ability to easily add functionality as needed such as order and route optimization, dock scheduling, yard management and container tracking

Some TMS providers like Kuebix offer a free version of their technology to help shippers better understand how to use the system and see real results from their operations risk free. Unlike a demo, Kuebix Free Shippergets shippers managing their freight and gaining true ROI even before adding modular features and capabilities.

When looking for a new TMS, check out The Complete Buyer’s Guide to Transportation Management Systems to get answers to questions like what to look for and how much a TMS should cost before committing to a system.

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!

Portfolio Items