5 Considerations For Selecting a TMS That's Right For Your Operation

Jessica Eynon

12 October 2018

Selecting a TMS? These 5 questions can help you determine the ideal system based on your need for customization, integration, scalability, and more.

Transportation management systems (TMS) offer a host of valuable new options for streamlining your shipping. A modern system can be up and running — and saving you money — within weeks. But there are now so many decent options on the market, how do you go about selecting a TMS that is right for your operation?

If you are looking for a TMS that will drive efficiencies, reduce freight transportation costs, improve visibility for your business, and allow you to better serve your customers, consider these five questions.

Start with a business-focused approach in selecting a TMS

If you’re searching for how to upgrade or even where to begin with a TMS, start with your business’ needs. Here are five questions to guide your search.

1. Do you want out-of-the-box or custom?

Many TMS offer “out-of-the-box” options. When you choose to plug and play with a TMS, you get the standard options. You will use the platform’s interface as is, without accommodating any of your business’ special needs. Pricing for upgrades and add-ons is variable. If you realize after the fact that you need even small changes to support your shipping practices, they may be expensive or impossible to accommodate.

Creating a customized TMS starts with a review of the current state of your business. With recommendations for best practices and streamlining, the result is a one-of-a-kind system built to work for your unique needs. Workflow, invoicing — it’s all considered in the development of a custom TMS. Need changes? No problem. You are working with an adaptable platform.

2. Do you want integration or web access?

There are two options for TMS access: integration and web access.  How do you choose?

Web access is quicker to turn on and less costly on the front-end. Additionally, web access is a good choice for shippers with small IT teams because your TMS provider will handle most technical issues. The downside? If you choose web access, your TMS will operate outside of your existing systems, requiring the export of data prior to amalgamation and analysis.

Integration takes longer to set up and costs more on the front-end. Ultimately, however, it will save you time and money. Why? Integration aligns your TMS with your existing systems, bringing all data under one roof. You will experience efficiencies — like fewer “clicks” between screens and platforms and a reduced risk of letting valuable data slip through the cracks during analysis.

One of the reasons we like MercuryGate TMS: it offers both integration and web access. Every business is different and MercuryGate’s flexibility allows us to meet every business’ needs.

3. Do you need a basic system or something scalable?

If you are looking for an out-of-the-box option, you are probably concerned about the costs of custom and scalable options.

Opting for an out-of-the-box TMS will save you time and money on the front-end. The catch? An out-of-the-box TMS will help your business grow, but it will not scale to meet your growing business’ changing needs. For this reason, we recommend selecting a customizable and scalable TMS.

Start streamlined for lower cost, quick start-up, and easy adoption. Then, as your business grows and you identify the precise areas of value provided by your TMS, you can augment those precise areas of value via solutions for scale.

For example, let’s look at reporting. In the beginning, you might not need more than basic spreadsheets. But down the road, your reporting needs might change. With a TMS like MercuryGate, you can upgrade your reporting capabilities from spreadsheets to beautiful, interactive, and completely customizable live-data dashboards.

Supply chains are complex machines. A TMS provides visibility across all layers, allowing you to identify areas for improvement and drive efficiencies.

4. What benefits are you looking for in a TMS?

Just like every business, every TMS is different and will provide a unique set of benefits. However, these are the non-negotiables:

  • Control-Tower Visibility

The most common reason for TMS implementation is control-tower visibility. Supply chains are complex machines. A TMS provides visibility across all layers, allowing you to identify areas for improvement and drive efficiencies.

  • Load and Route Optimization

Ship smarter by selecting a TMS that can optimize loads and routes. Based on your historic transportation data, the right TMS will present the best load and route plans per a selected set of parameters like ship-date, mode, and fuel surcharge. In today’s complex and carrier-centric marketplace, shippers must optimize their supply chain logistics to succeed.

  • Business Intelligence and Reporting

If your supply chain logistics aren’t data-driven, you’re wasting money. The right TMS will support your business intelligence and reporting needs so that you can collect the right data, convert it into insights, and then deliver those data-backed insights to drive efficiencies.

  • Omnimodal Support

If you only ship one mode, you are missing out. A TMS that supports omnimodal transportation helps you select the right mode for your freight every time. Usually ship TL but can’t find capacity? Investigate LTL. Usually ship LTL but can’t afford the transit time? Look into TL! You get the idea.

  • Ability to Locate Capacity

Speaking of finding capacity, the TMS you select must aid you in your search for container space. As long as today’s driver shortage continues, capacity is limited. Find it faster than your competitors with the right TMS.

  • Ease of Use

TMS are meant to save time and reduce transportation frustration, so ease of use is critical. Training a team on a new technology is difficult enough without adding a complex user interface to the mix.

  • Proven Integration

Finally, select a TMS that has proven integration capability to meet any current and/or future need for merging multiple systems. While beginning with a web-accessed TMS is ok, we have a feeling that it won’t be long before you’re looking into integration. Nothing beats seamless, end-to-end data!

5. What value does a 3PL add?

Partner with the right 3PL and offload TMS customization, training, and management onto them.

Out-of-the-box solutions are not hard to turn on, but for that reason, they aren’t designed to support your unique needs. If you choose a customizable and scalable solution, the right 3PL will ensure your TMS is set up for success from day one. They’ll conduct all trainings, educate you on any system updates, advocate for you with your TMS provider, and mitigate all technical issues.

Of course, different 3PLs offer different TMS solutions.

Our recommendation? Give Evans a call. Tell us about your business and the problems you’re trying to solve. We’ll let you know if our technology and transportation management solutions will help you reach your goals. If we’re not the right match for you, we will point you in the right direction.

Bottom line: TMS selection and implementation is no easy task. Don’t go it alone.

Jessica Eynon

Jessica is the VP of Technology Solutions at Evans Transportation.

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