We continue to see the return on investment for transportation management systems (TMS) increase, making TMS software one of the best investments a shipper or 3PL can make. Why is the ROI so good on a TMS? The truth is there is no single answer as to why the TMS continues to drive savings and efficiency.
And, while there is not a specific way to ensure you can achieve and maximize ROI on your TMS software investment, we’ve identified 10 ways to increase your odds.
1. Conduct a full ROI analysis.
Whether you have started a search for a TMS or are getting ready to start implementation, take the time to do a full ROI analysis. To know your ROI, it’s good to start by evaluating all potential costs associated with the TMS software and weigh those against the projected savings. With this data in hand, you’ll know when you get to breakeven on your investment.
2. Focus on the end goal.
3. Secure buy-in.
4. Define a clear plan of action.
5. Prepare for change.
Change management is often an area that is overlooked with many system implementations, but when done well, it can make all the difference. Communicate to every team member what’s happening, and when. And, make sure they understand how the new TMS software will impact their day-to-day work life. It will ease concerns and encourage adoption.
6. Evaluate current processes.
7. Look to the cloud.
8. Invest in TMS Software training.
9. Measure success and celebrate early wins.
10. Opt for Transportation Optimization.
One industry analyst recently said that if your TMS software doesn’t have optimization, he wouldn’t even classify the system as a TMS. Not every TMS has optimization, and still others claim optimization without all the functionality it requires. To maximize your ROI, ensure that the system you choose has proven optimization capabilities.