These days, the right TMS selection can make or break your supply chain, and we’re not exaggerating.
A good TMS cuts through red tape, slashing freight invoice payments by up to 95% and getting deliveries to the right place, on time, 20% more often.
The ideal TMS selection process must involve your entire team from the boardroom to the stock floor. Everyone, from the techies to the finance people, the supply chain pros and everyday workers, and even your suppliers and customers, has skin in the game and something to offer.
Why Stakeholder Involvement Matters
Choosing a TMS is like picking a new nervous system for your company. It’s a big deal that affects everyone, from the workers in the warehouse to the executives in the corner offices. Let’s break it down.
Untangling the TMS Selection Web
Picking a TMS isn’t just about finding software that tracks boxes from A to B. It’s a decision that ripples through your entire organization.
At the top, it gives leadership the data they need to make smart decisions and leapfrog the competition. Down on the ground, it makes life easier for the team by automating the boring stuff and cutting down on human errors.
But here’s the catch — it takes time to see the payoff. We’re talking an average of 17 months from “go” to “show me the money,” with returns typically kicking in around the 14-month mark. That’s a long time for a system that touches every part of your business.
The Power of Cross-Functional Input
The finance people monitor costs and ROI. IT ensures that the new system integrates well with existing technology. Logistics focuses on the nitty-gritty of day-to-day operations.
In other words, involving everyone makes it more likely that you will pick a TMS that fits your company’s needs. When your whole team feels heard during the selection process, it smooths the path for implementation. Considering the average user adoption rate for TMS products is around 80%, getting everyone on board early can push that number higher and help make your TMS investment pay off faster.
Key Stakeholders in the TMS Selection Process
Suppose you’re a newly appointed project lead tasked with selecting a transportation management system for a mid-sized logistics company that’s struggled for years with outdated systems.
You know this decision will shape the company’s future, but you need to sell it to a diverse team of stakeholders to make the right choice.
1. Chief Financial Officer (CFO)
2. Supply Chain Strategy Officer
3. Warehouse, Distribution, or Supply Chain Directors
4. Everyday Workers
5. Director of Operations
6. Marketing Personnel and CIO/IT Director
Marketing might seem like an odd addition, but think about it — they’re the ones who are going to have to sell this new system, not just to customers but to everyone inside the company, too. They can help frame the system’s advantages in a way that resonates. And the CIO/IT Director? They ensure this shiny new system plays nice with all your existing tech and protects your data from cyberattacks.
Calculate your potential Saving While Using an enterprise TMS
Enhancing TMS Selection Through Cross-Functional Collaboration: Final Thoughts
Choosing a TMS is like assembling an all-star logistics team. You wouldn’t run a warehouse with just forklift drivers, right? The same goes for selecting software. Bring together your operations, IT, finance, and everyday teams. Together, their input will help you pick a solution that works for everyone, from the loading dock to the corner office.
Are you curious about the details of TMS selection? Our MercuryGate TMS Buying Guide breaks down the process from initial scoping to final implementation.
And if you’re ready to take the next step and see how our TMS can upgrade your freight planning, carrier management, and real-time tracking, book a demo today. We’ll show you how to turn transportation data into a competitive edge.
