Three reasons to implement a SaaS TMS
According to Gartner Group, an increasing number of TMS buyers choose a SaaS TMS solution over traditionally licensed software . Although each customer has its own rationale, I want to highlight three reasons that I believe are game-changing.
Defining the terms
TMS – Transport Management System
Let’s begin with defining the terms. A TMS (Transportation Management System) is a holistic enterprise software for advanced transportation management, which can be used for strategic planning, for example to design global networks, as well as for tactical and operational planning, for example dealing with anything from multi-mode routes to driver schedules.
Just like simpler transportation administration systems, a TMS has functionality dealing with day to day operations like bookings, call-offs and track and trace. In addition, a TMS also supports the financial processes for customer specific freight agreements, cost control, invoice matching and statistical analysis of relevant KPIs and trends.
Software as a Service
SaaS (Software as a Service), is one aspect of cloud computing in the sense of making a software application available as a service (most often over the Internet), where the customer does not need to care about hardware, 3rd party software and licensing, operations monitoring, etc.
Applications that have been designed for SaaS from the outset are also multi-tenant, meaning that the same installation of the application can serve multiple customers.
In contrast, licensed software is usually designed for physical distribution, on-premise installation and operation by the customer (or the customer’s outsourcing and/or hosting partner).
Why you should choose a SaaS TMS
1. TMS as SaaS lets you focus on the business
Albeit all larger companies have their own IT departments, in the end it is the business part that selects, pays for and uses a TMS. The business is mainly concerned with running the business, in this case relating to the transportation of parts, finished goods, aftermarket items or whatever is being transported.
A SaaS TMS is delivered with an SLA (Service Level Agreement) which ensures the availability of a functioning application. Can you let your own IT department operate your TMS under an equivalent SLA? I am sceptical.
2. A SaaS TMS lets the experts take care of the IT operations of the system
Handling IT operations of office productivity software is one thing, operating and maintaining an actively managed enterprise software solution is entirely different, since it evolves continuously through improvements and modifications to support a dynamic and specialised business. Give it a thought – who do you think will be most successful in managing the operation of your TMS?
An arbitrary company’s own IT organisation (imagine your own), a global IT giant who takes on virtually any IT related engagement using low-cost resources, or the company that virtually lives off its success with their own software and who can realise economies of scale through the multi-tenant model? Who is best suited and motivated to avoid issues and if worse comes to worst, sort them out quickly when they arise?
3. A SaaS TMS makes it easy to connect
Regardless of where your user is located, if it is a user within the company or an external user with your customer/supplier/partner, the SaaS solution is ready, accessible and available. In the specific case of TMS, the connection to carriers is also essential and thanks to the multi-tenant architecture, it is very likely that your carriers are already connected to your SaaS TMS from the start.
For many enterprise software categories in general and for TMS in particular, SaaS is more often a given choice.
Want to know more?
Please don’t hesitate to get in touch for a more in-depth discussion about the opportunities of implementing a SaaS TMS solution, what the main benefits are and how you construct your business case.