For evaluating TMS Vendors, the TMS Scorecard provides a valuable tool that helps you make the best decision for your organization’s transportation management needs.
The logistics and supply chain industry continues to face challenges from a changing landscape. Inventory imbalances, decreased warehouse space and increased warehouse pricing, global politics and international conflicts, added charges, port congestion, and a shortage of workers – all jeopardize smooth supply chain operations.
Increased data collection and proper use of that data helps you manage many of these challenges. A robust transportation management system (TMS) is critical to collecting diverse data and turning it into valuable business intelligence and insights.
However, the particular TMS you choose significantly affects how well it supports your organization. Let’s explore how a TMS scorecard helps you make the right choice.
Understanding the TMS Scorecard
A TMS scorecard is similar to a school report card. It includes important details about each TMS company and its system, including:
- Key features.
- Drawbacks and concerns.
Before comparing vendors, it’s helpful to have a good idea of what a transportation management system can do and the possible TMS capabilities. This understanding helps ensure your company finds the TMS that will best meet your needs and continue to fit as your business scales.
The Power of a Digital TMS Scorecard
Comparing transportation management systems and their vendors is much easier through a digital scorecard. Companies can use it to:
- Track a long list of details about each vendor.
- Create lists of pros and cons.
- Make notes and update them in real-time.
- Communicate in one place between team members.
- Provide everyone with the same access to information.
Key Benefits of Using a TMS Scorecard
Some of the benefits a TMS scorecard provides for your company includes:
- Reviewing quickly any past bids from vendors by collecting and organizing this data in the system.
- Identifying which vendors offer the specific features and services your company is seeking.
- Comparing offers and adjusting reviews as needed.
- Simplifying the processes of creating pro and con shortlists, as well as reviewing these lists.
- Streamlining the sharing of data and status updates to keep stakeholders informed.
- Tracking budgets and profits versus losses for new selection/onboarding to avoid surprises.
- Collaborating quickly while keeping the team focused on the same goals and results.
- Customizing the setup and details to fit each company’s specific needs, wants, and goals.
Avoid Common Pitfalls in TMS Vendor Selection
One important reason for using a TMS scorecard is to avoid potential challenges in the vendor selection process. For example, a company may be faced with challenges like these:
- Not collecting the exact details on every vendor and TMS.
- Having data that is disorganized.
- Not giving all relevant parties access to the same information.
- Failing to consider the company’s growth goals and whether the TMS will continue to be effective as the company scales.
- Forgetting or misplacing specific data.
- Not realizing which data is helpful to track.
A TMS Scorecard helps your company avoid these potential pitfalls by making it easy to track all relevant data in one place, make it comparable, and provide access to all appropriate parties. Once your company decides on a TMS, it’s essential to focus on overcoming implementation obstacles.
Leveraging TMS Scorecard for Competitive Advantage
When used effectively, a vendor scorecard can be a strategic asset that provides your organization with a competitive advantage.
It helps you get the best view of the available TMS options, the details of what they offer, and how they can benefit your business. The scorecard provides insight into which TMS would be best to meet the needs and wants of your company, as well as which TMS will help your company grow into its goals and beyond.
Having the right TMS provides a competitive edge in transportation management. It helps your company run more streamlined and strategically, and using automation in a TMS can create a competitive advantage.
Successfully Choose a TMS Vendor
Just as a TMS collects data and helps a company use it effectively, a TMS vendor scorecard does the same with data about vendors.
As a result, the TMS scorecard enables decision-makers to manage and compare data on vendors, then make the best selection for a TMS RFP submission that will meet tailored needs and goals.