What To AVOID When Choosing Your New TMS

WE ALL KNOW that a transportation management system (TMS) serves as the cornerstone of a freight broker’s operations due to its pivotal role in streamlining and optimizing various aspects of the logistics process. But with so much on offer today, what should you avoid when choosing a new one so you don’t make a massive mistake?

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In essence, a TMS serves as the nerve center of a freight broker’s operations, empowering brokers to efficiently manage their logistics processes, optimize resources and deliver superior service to their customers. By leveraging the advanced capabilities of a TMS, you can gain a competitive edge in the dynamic and fast-paced – and changing – world of freight brokerage.

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In today’s rapidly evolving logistics landscape, selecting the right transportation management system (TMS) is paramount for the success and efficiency of your operations. With a plethora of options available, it’s crucial to navigate the selection process judiciously to avoid potential pitfalls and ensure optimal outcomes for you and your team.

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Here are 12 essential points to consider before committing to a new and potentially better TMS platform:

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Zero upfront charges:

When considering a TMS, steer clear of any provider that requires large upfront payments. Choosing a TMS should not be a financial burden, and any provider demanding payment upfront may not have your best interests at heart. Today, we live in a subscription world.

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Generous free trial period:

A reputable TMS vendor will offer a generous free trial period of at least 30 days. This allows you to thoroughly evaluate the platform’s capabilities and suitability for your business needs before making any financial commitments.

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No additional charges for training or support:

Avoid TMS providers that tack on extra charges for training, support or maintenance. Such fees indicate a lack of confidence in the platform’s usability and reliability, potentially leading to hidden costs down the line.

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Ease of implementation:

In today’s digital age, TMS platforms should be intuitive and easy to implement without the need for extensive IT expertise or complex configurations. Just think of the iPhone. When did you last read the "manual" for it (hint: there isn’t one). Choose a TMS that can be seamlessly integrated into your existing workflows with minimal disruption.

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Pure cloud-based platform:

Opt for a TMS that is built natively for the web and hosted entirely in the cloud. A pure cloudbased solution offers unparalleled flexibility, scalability and accessibility, allowing you to manage your transportation operations from anywhere at any time and avoiding the hefty costs of on-premises installations and management.

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Transparent pricing structure:

Beware of TMS providers with convoluted pricing structures that require a degree in mathematics to decipher them. Pricing should be straightforward and transparent without any hidden fees or nickel-and-diming. If you can’t understand their pricing now, you surely won’t understand their bills later.

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Free tier option:

Look for TMS vendors that offer a free tier option, allowing you to test drive the platform’s core features for as long as you need before committing to a paid plan. This enables you to gauge the platform’s suitability for your needs without incurring any financial obligations upfront and at a pace that works for you.

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Verified customer reviews:

Prioritize TMS providers with verified customer reviews from their real users. These testimonials offer valuable insights into the platform’s performance, reliability and customer satisfaction levels, helping you make an informed decision. If reviewers like a TMS, then your own team will likely be happy with your choice, too.

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Financial stability:

Before selecting a TMS vendor, conduct thorough due diligence on their financials and profitability. Entrusting your transportation management to a financially unstable provider could pose significant risks to your own operations in the long run. Ask the hard questions – or you’ll regret it later.

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Independence from competitors:

Ensure that the TMS provider is not owned or affiliated with any of your competitors. Choosing a TMS with potential conflicts of interest may compromise the confidentiality and security of your data, as well as your competitive advantage in the market. You might need to do a little digging, but committing to core TMS technology that’s owned and operated by your direct competitor is very unwise.

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Comprehensive functionality with assets:

Select a TMS that supports both asset-based and brokerage operations within a single unified system. This integrated approach streamlines your transportation management processes, eliminates data silos and enhances overall efficiency and visibility whether you have assets today or if you decide to acquire some in the future.

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Continuous innovation at no extra cost:

Lastly, opt for a TMS vendor that prioritizes continuous innovation and regularly introduces new features and enhancements to the platform at no additional cost to you. This ensures that your TMS remains up-to-date with the latest industry trends and technologies, empowering you to stay ahead of the competition, all without the burden of added costs.

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In Summary; AVOID Disaster - Follow The Above List:

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Most people never consider the above traps of moving to a new TMS system. They usually only consider what features they need and want their TMS to perform. But even if a new TMS meets your needs in terms of features and even price, you need to fully understand the negative ramifications of picking the wrong TMS platform, as it’s something you’re going to need to live with for a long time.

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Choosing the right transportation management system is a critical decision that can significantly impact your business’s success and your efficiency. By considering these 12 essential points, you can confidently navigate the TMS selection process and find a solution that meets your unique needs and objectives, both now and in the future.

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Remember, the right TMS is not just a software platform – it’s a strategic investment in the future growth and success of your brokerage and transportation operations.

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Happy hunting!

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See the original TIA article in 3PL Perspectives at: https://3plmagazine.tianet.org/trim/library/page/july_2024/10/

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