More factors impact everyday modern logistics operations than ever before, including regulatory policies and pressure to deliver correctly and on time. A transportation management system (TMS) is needed to navigate the challenges these factors present.
However, before seeking approval for your TMS project, a clear vision of the desired outcome is essential. It’s not just about simplifying logistics; the TMS is much more powerful than that.
Making the Case for TMS Projects in Your Technology Budget
1. Start with a Compelling ROI
Break down how the TMS helps control costs when it:
- Optimizes routes.
- Consolidates shipments.
- Helps negotiate better carrier rates.
Although TMS has a great ROI, it also has a quick rate of returns. Highlight certain TMS benefits that can be realized quickly, even within the first year of implementation. Then, consider case studies because nothing speaks louder than stories. Share real-life examples of companies that have achieved significant ROI with a TMS, but ensure the focus is on relatable examples.
2. Assess Feasibility and Integration
Check that the TMS you feel is compatible with your operating systems. Assessing data and customization needs. TMS solutions like MercuryGate can integrate with many tech solutions used in the supply chain.
3. Align With Strategic Business Goals
Ensure the TMS project is connected to broader business goals such as customer satisfaction, efficiency, and scalability. Leveraged pain points to emphasize the TMS application’s importance. Some challenges a TMS might solve for your operation include poor scheduling and lack of visibility and transparency.
Don’t be afraid to point out current shortcomings in the organization if the TMS can resolve those. In fact, you can appeal to some key executives that way. Align the project with their strategic objectives to win their support.
4. Prepare for Budget Justifications
An example objection: the TMS project cost is too high.
- Suggested answer: While the upfront cost may seem significant, focusing on the long-term ROI is essential. A TMS can generate substantial savings through freight cost reduction, operational efficiency gains, and inventory optimization.
5. Address Potential Risk and Mitigation
6. Empower Internal Champions
7. Develop a Clear Roadmap for Implementation
Outline the key milestones from project approval to full implementation.
This will help provide a realistic timeline that aligns with the company’s goals and budget cycles. Encourage a mindset of ongoing improvement post-implementation because it is crucial for long-term success. Ensure the business knows to prepare for continuous improvement and foster a culture of ongoing enhancement.
Calculate your potential Saving While Using an enterprise TMS
MercuryGate is Your Ideal TMS Solution
MercuryGate is not just a software tool but a gateway to unprecedented efficiency and expertise in transportation management.
Find out how we can streamline your entire implementation process, ensuring little to no pressure from the TMS project approval committee. Request a demo today and see the difference. Download our eBook for more support in your TMS journey.
