A transportation management system (TMS) automates shipping processes on a single digital platform. The efficiency gains can be enormous, and many modern shippers wouldn’t be without one. However, they do come with pitfalls. Fortunately, those pitfalls can be avoided.
Pitfall #1: Hidden Costs
It can be easy to run up a tab with a TMS. Often there are extra fees for setup, installation, customization, training, and maintenance. There can also be fees for integrating third-party resources such as load boards and data feeds.
Pitfall #2: Maintenance
Because TMS providers charge extra for maintenance, many shippers rely on their own employees for this. But this comes with some risks. The biggest risk, of course, is that a power user leaves. Now the shipper is stuck with a platform it cannot maximize until a replacement is brought up to speed.
Pitfall #3: Complexity
TMS solutions have grown incredibly complex. This complexity can discourage shippers from venturing beyond the most crucial features, even when there is additional value available.
The Managed Services Solution
A managed services solution avoids these pitfalls because it provides both the TMS platform and the experts to operate it on your behalf.
- Usually the only cost is a predictable monthly fee. A few providers, including UTS, do not charge any fees.
- The provider employs experts who set up and maintain the TMS for you.
- Much of the complexity is hidden to you because it is managed internally by the provider rather than externally by the shipper.
- The provider will help you maximize the value you get from the TMS.