Advancements in supply chain technology, including robotic process automation (RPA), big data analytics, and software-as-a-service (SaaS) platforms, have broken down barriers to efficiency and made big promises. Unfortunately, limitations still fuel avoidable TMS disadvantages.
Not all transportation management systems (TMS) platforms are created equally, nor do they all carry the enterprise level of sophistication and value.
Afterall, when it comes to TMS, “The scope and capabilities of transportation management systems, as well as the vendor landscape, have changed significantly over the years, and the systems continue to evolve,” according to Talking Logistics founder and market analyst Adrian Gonzalez. “The same is true for the transportation market and the types of challenges and opportunities that shippers and third-party logistics providers face.”
As a result, supply chain leaders need to know the top signs to recognize when technology limitations are producing TMS disadvantages in your organization.
TMS Disadvantages: Limited Visibility Results in Missed Pickups
tMS Disadvantages: Users Cannot Access Data in Real-Time
Another of the top limitations of TMS software revolves around the accuracy and timeliness of data. In today’s world, outdated data can have disastrous consequences.
And when users cannot access data in real-time or experience disruptions during routine operations, the limitations of the software are beginning to hurt your process further.
TMS Disadvantages: Updates Are Time Consuming and Disruptive
On the topic of disruptions, frequent updates to a TMS platform are inevitable. Software developers are continuously looking for ways to add more functionality and data-rich functions to the best media. However, that ongoing process alludes to one of the limitations of TMS software that can go overlooked.
When updates become excessively time-consuming and disruptive to your supply chain’s overall flow, it is one of the biggest TMS disadvantages.
TMS Disadvantage: Freight Spend Continues to Climb Despite “Promised ROI”
Fly-by-night TMS vendors built their reputations on promising a more substantial ROI. However, any successful TMS should continuously add value through realistic returns and process improvements.
We’ve created content to help you understand the ROI of a TMS and the benefits it offers.
- Infographic: 6 ROI Impacts of Integrated Visibility Solutions.
- eBook: Driving ROI | Comprehensive Transportation Management System for Optimization.
Use our ROI Calculators to discover the return on investment delivered by all our transportation management solutions.
TMS Disadvantages: The System Lacks Multimodal Optimization
Today’s consumer has high expectations for everything which is contributing to an increased demand for faster, lower-cost shipping.
Offering free shipping to customers is one side of the equation. The remainder of the equation rests on lowering the overhead expenses experienced by the shipper or transportation network.
If the system cannot offer multimodal optimization, you are facing disadvantages in your TMS and it may be time for a serious upgrade.
Overcome TMS Disadvantages of Limited Software
There is a perception that maintaining the status quo is a way to handle supply chain growth. However, the pandemic and ensuing significant disruptions taught supply chain leaders that working within the limitations of TMS software may be a recipe for disaster.
To overcome TMS disadvantages, supply chain leaders need to recognize when the limitations of TMS software hurt more than they help and intervene accordingly.
Discover how a TMS Software Buyer’s Guide can help you overcome TMS disadvantages and select a platform that supports your transportation management needs.
