Many companies are still using the transportation management system (TMS) they installed 15 or even 20 years ago! Technology has changed and improved significantly over that time. So if you’re still using an outdated TMS to manage your logistics operation, it’s time to upgrade to a modern, cloud-based system.
Why Should I Replace My Old TMS?
The old mantra “if it ain’t broke, don’t fix it” doesn’t work when it comes to technology. Just because a system is functioning doesn’t mean that there aren’t more and better features to improve your shipping operations. A horse and cart are likely faster than walking up the road, but that doesn’t mean a car isn’t the better option to get to your destination efficiently. The same is true when it comes to technology, without exploring all the options, you may be missing out on valuable features.
Legacy TMS systems often don’t provide the transparency and visibility you need to monitor shipments, optimize routes, lower costs and improve efficiencies. What sufficed for customers in the past probably doesn’t cut it with your current customers. Customers have become accustomed to Amazon-like delivery options and visibility to their orders. It’s up to you to meet these heightened customer expectations with technology.
With legacy transportation management systems, there’s no way to tell if a delivery is going to be late so you can warn your customers. You don’t have the ability to collaborate in real time with your carriers and onboarding new carriers is a hassle. Your old TMS is simply not keeping up with consumers’ changing expectations and the increasing demands of the modern supply chain. A modern, cloud-based TMS can help.
How Can I Improve My Transportation Operations with Technology?
Upgrading an older system is rarely an option. To compete in the modern supply chain where visibility and flexibility are key, you need to implement a cloud-based TMS. A cloud-based TMS offers faster start-up, lower usage costs, greater flexibility and rapid return-on-investment (ROI). Lower maintenance and support costs are a big plus, too. With a cloud-based TMS, any size business is given a fair chance at competing with larger companies because of low start-up costs and easier upkeep.
Modern transportation management systems can do a whole lot more than they used to.
Scalability is something that most legacy, on-premise TMS solutions do not offer because of their rigid infrastructure. With scalability available in newer TMSs, you are able to add new features and functionality to your system without starting from scratch. Your TMS should be flexible to grow as your business grows. Start with just rating, booking, scheduling and tracking, then add modular features like freight bill pay and audit, ERP integrations, order consolidation, route optimization, and collaboration portals as needed to help you customize the technology to best fit your needs.
Complete supply chain visibility is another feature which only new, cloud-based TMSs can offer. From the loading dock to the final mile, a TMS should track and trace orders down to the SKU level, giving visibility to what is on each truck, how many items there are and where the truck is. A TMS should help you answer questions like whether the truck is delayed and if there are items missing from the order.
Most legacy TMSs do not integrate well with other systems. Today’s cloud-based transportation management systems have the ability to easily connect and share with customers, suppliers and carriers, on any device, wherever the stakeholder is. New systems integrate purchase orders directly from any ERP system to facilitate the rapid creation of shipments, avoiding the need to re-enter the order, which can lead to errors and increased admin time. Retailers with their own e-commerce engine should be able to connect directly to the TMS by using open APIs, adding shipment tracking and the ability to rate, book and schedule deliveries.
Your TMS Should Connect You To a Vast Network
If your TMS is not cloud-based, will not integrate with other systems and cannot provide end-to-end visibility, along with flexibility and scalability to easily add additional features, then it is time for a change. Not only that, your modern TMS should be connecting you with a vast network of carriers, suppliers, freight marketplaces, brokers, and 3PLs to streamline your operations. Being able to manage all of your shipping functions within a single system is essential. With a cloud-based transportation management system like Kuebix TMS, all of this is possible.
Become a Kuebix Free Shipper to see how a modern TMS can improve your transportation operations today!