How to Choose the Best Transportation Management Software: Custom vs. Off-the-Shelf

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Key Takeaways

• Transportation management software (TMS) optimizes route planning and load consolidation, reducing fuel costs and transportation expenses.
• By picking the best TMS software for your needs, you can embrace automation for order consolidation and carrier selection so businesses can make better decisions to minimize transportation costs.
• Real-time tracking enhances visibility into the supply chain, allowing businesses to identify bottlenecks and manage inventory effectively. It also enables companies to promptly adapt to changing market conditions for increased customer satisfaction and reduced lead times.

Manual process management has become the biggest stumbling block to successful operations in logistics and supply chains. Businesses, from retail and manufacturing to carriers and brokers, operate with top transportation management systems to stay competitive by automating basic processes.

TMS software is a cloud-based logistics platform designed to simplify and automate supply chain management. To address the needs of modern supply chain actors, TMS providers offer powerful tools with order management, route optimization, and freight audit features.

At Acropolium, we have been trusted with logistics software development for 9+ years, breathing automation to elevate our clients’ supply chain operations. In this article, we’re giving an overview of leading TMS software providers to help you pick the best transport management system for your goals.

Dive in to explore the benefits and potential of custom solutions based on real-life use cases and our clients’ success stories.

Global TMS Market

The continuously evolving global trade makes TMS systems indispensable for businesses operating within the supply chain. Thus, the global transportation management solution market reached USD 13.61 billion in 2023. With the ever-growing potential for adopting cloud solutions, the market is anticipated to grow at a 17.4% CAGR from 2024 to 2030.

Features to Consider in a Transportation Management Platform

Remember: the best transport management system is the one that provides the necessary features for your specific needs. It might be anything from route optimization and order management to freight tracking and automatic reporting capabilities. When searching through TMS providers, most companies focus on the following functionality.

Route Optimization

Efficient route planning is imperative to minimize transportation costs and reduce delivery times. With the power of big data, predictive analytics, and AI algorithms, TMS tools offer GPS-based features, building the most efficient routes in real time.

Order/Load Management

Streamlined order or load processing, tracking, and visibility throughout the supply chain facilitate timely deliveries and drive customer loyalty. When all the historical shipment data is collected automatically, you can get immediate insights to predict potential errors and enhance risk management.

Real-Time Tracking

Live monitoring of shipments and inventory enables proactive decision-making. As you have complete visibility over ongoing processes, you can monitor the stock levels, avoiding overstocking and stockouts before they become an issue. Increased visibility also eliminates communication between different parties, ensuring cohesive supply chain management.

Integration Capabilities

Seamless integration with tools like ERP and warehouse management software is integral for a smooth workflow and data consistency. Not only should all the instruments from your arsenal sync in terms of data, but they also have to form an interconnected system.

Reporting and Analytics

Top TMS providers offer robust reporting tools and analytics features for data-driven insights into logistics performance. This is especially useful for electronic document management, where critical papers like invoices, certificates, and customer records are digitized for enhanced internal analytics.

Scalability & Customizable Workflows

Choose a TMS that can scale with your business as it grows. It should accommodate increasing transaction volumes, additional users, and expanding logistics complexities. The most popular TMS systems allow users to customize the workflow, expanding or limiting the functionality based on the workload.

Carrier-Oriented Features

For 3PL operations, choose transportation management software that allows for selecting and managing carriers, negotiating rates, and optimizing carrier relationships. Keeping all the communication within one system will help you significantly optimize your workflow while having all the critical information available in a few clicks.

Cost Management

Features for controlling and optimizing transportation costs, including freight audit capabilities, will help you better understand your expenses. This allows you to analyze the invested resources with data-driven insights, optimizing the budget and cutting operational costs.

Security and Compliance

Since supply chains rely on data integrity and legal compliance, TMS providers have to implement robust data security measures. Ensure the tool is built with encryption and secure user authentication practices and follows industry protocols.

The Best Transportation Management Software to Consider

You might come across dozens of tools on your way to choosing the best transportation management software. Although many of them may seem to be similar functionality-wise, each is designed to cover the needs that vary from business to business.

Let’s glimpse the most popular TMS systems for businesses of different sizes and explore their features, pros, and cons.

Oracle

Oracle’s TMS is a comprehensive and integrated transportation management solution developed by Oracle Corporation. It is known for its ability to handle complex logistics scenarios, providing large businesses with the tools to optimize their supply chain. The tool is designed to reduce transportation costs and enhance overall efficiency in managing the movement of goods.

Best for: large enterprises

Features & Advantages

• Order management, route optimization, and freight audit features enable end-to-end visibility over transportation operations.
• Integrates seamlessly with other Oracle applications and third-party systems.
• Provides robust reporting and analytics tool
• Supports global logistics with features for managing international shipments, compliance with regulations, and coordination of complex supply chain networks.

Disadvantages

• Implementation can be complex and time-consuming, requiring skilled IT resources.
• The initial and maintenance costs may be relatively high since the tool is designed to serve enterprise-level needs.
• Customizing the system to specific business requirements may be challenging.

Shipsy

Shipsy stands among the top transportation management systems for global businesses. The product aims to establish a resilient, interconnected, flexible, sustainable, and autonomous supply chain and logistics operations. Offering an intelligent logistics management platform, the company enables 3PLs to achieve substantial cost reductions, minimize carbon footprint, and facilitate smooth cross-border freight movement.

Best for: large enterprises and medium-sized carriers.

Features & Advantages

• The TMS platform provides real-time visibility into the supply chain, allowing users to monitor shipments, optimize routes, and dispatch freight with multi-carrier management features.
• A user-friendly route optimization tool enables users to utilize the maximum capacity of their operations.
• The product offers intelligent live reporting and trends analytics capabilities.

Disadvantages

• Some users report a non-intuitive interface and late system updates.
• Due to server loads, the tracking application might not respond promptly during pick-up and delivery, impacting user experience.
• No middle mile transportation features.

Uber Freight TMS

Uber Freight oversees a vast global transportation and logistics network. The company enhances supply chain performance, catering to businesses of all sizes. As one of the most recognized transportation management providers, the software positions itself to deliver data-driven results in logistics management, strategic capacity, and cross-border services.

Best for: logistics businesses of any size.

Features and advantages

• The application pairs truck drivers with the required cargo and aids shippers in quicker load tendering and comprehensive tracking.
• This TMS offers a dashboard enabling shippers to obtain a non-negotiable quote upon login promptly.
• Shippers can efficiently create a load, while dispatchers gain immediate access to available freight loads and driver availability.

Disadvantages

• The tool does not consider the driver’s service hours or breaks, resulting in a lack of transparency in the estimated delivery time frames.
• Insufficient automation features hinder the ability to achieve optimal resource optimization.
• The TMS doesn’t support real-time reporting and report customization features.
• Users report slow payment processing, which affects their reputation.

SAP

SAP TMS is designed to help businesses manage and optimize their transportation and logistics processes. It comprises a set of tools and features for transportation planning and monitoring.

Best for: logistics businesses of any size.

Features and Advantages

• The product enables collaboration with carriers, providing a platform for communication, document exchange, and coordination of transportation activities.
• Comprises essential features like route planning, load optimization, and carrier selection.
• The solution supports compliance with transportation regulations.
• Provides scalability features to cater to businesses of all sizes
• SAP TMS integrates with other SAP modules.

Disadvantages

• Complex implementation requires additional spending on deployment.
• There’s a possibility of learning curve issues due to the system’s extensive functionality, necessitating thorough training for effective utilization.
• Despite being a scalable solution, the TMS implies costly installment, which might not be the best TMS software for small businesses with fixed budgets.

Blue Yonder

Blue Yonder specializes in digital supply chain management and omni-channel fulfillment, offering an intelligent end-to-end platform for retailers, manufacturers, and logistics providers. The TMS aims to automate profitable business decisions, fostering growth and enhancing customer experiences.

Best for: logistics businesses of any size.

Features and advantages

• The tool utilizes real-time data from big data, artificial intelligence (AI), machine learning subsets, and advanced algorithms to plan and perform transportation activities.
• Provides knowledge base using real-time data to optimize your transportation network and fulfill market demand.
• This software caters to scalable operations, allowing for flexible planning and consumption of logistics services using data from an extended supply chain.

Disadvantages

• It might not be compatible with some business systems due to the SFTP-based data exchange approach.
• Some users report the interface to be hard to navigate.
• The product offers limited workflow customization features.

Custom Transportation Management Software vs. Off-the-Shelf Solutions

While searching for the best transport management software among off-the-shelf options, you might find parts of their functionality either insufficient or unnecessary. At this point, you might consider custom software development.

Custom TMS is tailor-made to address your specific goals and requirements. It is designed and developed from scratch, offering a high level of customization but often involving a longer development time and higher costs.

Conversely, off-the-shelf solutions offered by TMS providers are pre-built and readily available. While implying a quicker implementation process, they may have limitations in terms of customization.

Benefits of Operating with Custom Transportation Management Software

Streamlined Operations

Tailored software can automate and streamline processes like route planning, scheduling, dispatching, and tracking, resulting in cost savings and enhanced productivity. For example, C.H. Robinson — a leading 3PL — operates with custom-made software to optimize the management of shipments for both shippers and carriers.

Scalability and Integration

Custom solutions scale to meet rising demand and complexity as your transportation business expands. It can seamlessly integrate with GPS tracking, inventory management, and ERPs through shipping APIs.

Speaking of tailored TMS examples, XPO Logistics invested in tailored software, which allows the company to enhance data accuracy and enable real-time decision-making for better route planning. Their system easily communicates with other tracking and management tools, optimizing the workflow.

Cost-effectiveness

Despite the initial investment required for custom software development, it can lead to long-term cost savings. By optimizing operations, reducing manual errors, and increasing efficiency, bespoke software minimizes operational costs and maximizes revenue over time.

Business Adaptability

Your business needs may shift as market dynamics, regulations, and technology evolve. Custom software provides the adaptability to swiftly and efficiently respond to these changes, ensuring your business maintains competitiveness and agility.

Making the Right Choice for Your Business

Apart from functional transport management system requirements, there are deeper, business-related factors to consider when evaluating popular TMS providers. You need to compare the available offers and ensure the product translates to business growth by analyzing the following parameters:

• User-friendliness. An easy-to-navigate interface is what differentiates top TMS solutions. Opting for intuitive, straightforward tools can improve the adoption rate and training time, especially when it comes to process and software modernization.
• Cost and ROI. Assess the overall implementation and maintenance expenses. Consider the return on investment regarding improved efficiency, enhanced customer satisfaction, and cost savings. If customization and ownership are priorities, consider developing software with a web development vendor.
• Vendor reputation and portfolio. Before approaching TMS providers, it’s wise to check for their product on verified software reviewing platforms. The same goes for outsourcing vendors: see what people say about their performance on Clutch or GoodFirms. Also, make sure that their dedicated teams’ expertise and approach to communication match your requirements.

Through 20+ years of bespoke web development, we have delivered over 150 software project consultations and solutions to businesses of all sizes. In the last ten years, we have been focusing on maximizing logistics operations by delivering cost-efficient SaaS solutions to industry top players.

Acropolium’s Success Stories

When modernizing a TMS for our partner, we have helped the business shift to a cloud-based system:

• As the company grew its operations, over 1 billion shippers could access the software effortlessly.
• At the same time, the implemented integration capabilities resulted in a monthly savings of over $5,000 for the client.
• Furthermore, relocating the client’s transportation management platform to AWS hosting has led to an annual saving of approximately $10,000.

We also saw significant cost reductions after building a SaaS warehouse management system for a client:

• Having implemented automation and integration capabilities, the company reduced operational costs by 17%.
• Through accurate inventory tracking and instant visibility into stock levels, the client has experienced a 31% improvement in order processing time.
• Overall the company achieved a notable rise in the number of orders processed, enhancing warehousing efficiency by 29%.

Final Thoughts

Finding the best TMS software starts with understanding your business needs and operational focus. If chosen right, a tool that seamlessly integrates into the intricacies of your supply chain will act as a catalyst for efficiency and cost-effectiveness.

Choosing between custom and off-the-shelf TMS depends on your resources and priorities. Custom solutions offer tailored precision, while off-the-shelf software provides speed and initial cost advantages. Whatever your objective, Acropolium will be there to craft a GDPR-compliant for your logistics business.

Prioritizing your needs and budget, we offer subscription-based cooperation with ongoing support and transparent management. Let’s chat!

Sources of Information

• TMS Market Analysis — Grand View Research
• Global TMS Market Forecast 2024 — Verified Market Reports