Do Not Waste Your Money on Transportation Management System (TMS) Unless You Do This First

Do Not Waste Your Money on Transportation Management System (TMS) Unless You Do This First

AUTHOR

Shyam Soni

TIME TO READ

minutes 

UPDATED ON

April 7, 2021

On the face of it, thinking logically, there is only one drive for transportation management systems - reducing costs. That is why there is a common assumption that no matter what TMS you choose, you will come ahead with savings. The system is expected to pay for itself within a few years, if not months. 

These systems are expensive, and have a learning curve. We have built many such systems using common tools for our clients.  In each case they delivered cost savings well in excess of what the client paid for the system. 

Having said that, I would also like to point out that a bulk of transport dollars are wasted in many companies of moving goods that should not be moved, or carried in the inventory in the first place. If you handle that problem first - your transportation costs will plummet significantly. 

We cover this question in full detail in several blogs because it is a rather deep discussion worthy of its own contemplation. We encourage you to read the following blog posts before we continue this discussion:

  1. What is the Most Effective Strategy to Massively Slash Shipping Freight Costs?
  2. Why Logistics Companies Get Away With Extra-ordinary Practices and Pricing?
  3. What Is The Easiest Way To Cut Warehousing Logistics Cost To Minimum?

Once you have read these three posts carefully, you would already have a number of ideas on making changes in your logistics and transportation arrangements. Now you are ready to consider the right TMS for your operation. Read the following 2 blog posts before you actually invest in a TMS:

  1.  Critical Functionality Of A Good Transportation Management System (TMS)
  2. Three Dimensions Of Transportation Optimisation

Now you are well equipped with the requisite information to start choosing the right TMS and implementing it into your business. 


Copyright - These concepts, frameworks and ideas are copyright of GLOBAL SUPPLY CHAIN GROUP from the time of their creation. Do NOT copy these without permission and proper attribution.

Notes:

  1. These ideas and concepts will be usually expressed by our thought leaders in multiple forums - conferences, speeches, books, reports, workshops, webinars, videos and training. You may have heard us say the same thing before.
  2. The date shown above the article refers to the day when this article was updated. This blog post or article may have been written anytime prior to that date. 
  3. All anecdotes are based on true stories to highlight the key points of the article - some details are changed to protect identification of the parties involved. 
  4. You are encouraged to comment below - your real identity and email will not be revealed when your comment is displayed.  Insightful comments will be  featured, and will win a copy of one of our books. Please keep the comments relevant, decorous and respectful of everyone. All comments represent opinions of the commentators.

Shyam Soni

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