Transportation management systems (TMS) aren’t new technology. What is new, however, is the faster rates of TMS implementation. The increasing number of TMS shipping software users is largely due to the introduction of the SaaS service model, which allows for value-adding services and other innovative technologies which brought change to the supply chain industry.
There are a lot of potential concerns surrounding the industry currently. There is the electronic logging device (ELD) mandate, smaller fleets, potential for a driver shortage, and more to think about. With these issues, outdated shipping software is nearly obsolete.
Unfortunately, a lot of transportation management systems are based on such outdated shipping software. Shippers have begun to notice that predictive analytics and other value-add solutions becoming available on the shipping software market, and they are no longer accepting a standard TMS, which no longer does enough to reduce costs and improve supply chain management.
Outdated versions of TMS shipping software are expensive to implement, which leads shipping companies to see a lower ROI than they’d like. This isn’t an issue with SaaS TMS. It costs much less to implement, and it lacks the difficult integration of traditional TMS solutions. Lately, however, the differences don’t end there.
A transportation management system is no longer just a shipping software. Freight shipping companies want more value-adding services than just the shipping technology. Freight auditing, for example, is something shippers look for in a good SaaS TMS service provider. Both main shipping technologies, electronic data exchanges (EDIs) and application program interfaces (APIs) need to be integrated to make the most of the shipping software.
Of course, the shipping software is still after the same thing: save money shipping. The goal of TMS is to offer improved services and increase savings. Adding services like freight auditing help to increase these results. Looking through invoices for breaches in carrier contracts, late deliveries, and so on, so that shippers can file for refunds makes freight auditing a valuable service for shippers. More companies are looking for a short-term return on investment with the availability of a cheap TMS service model such as this, especially if the shipping software is combined with freight auditing services.
Shipping software and shipping technology has always had an influence on freight shipping industries, and the fast development of transportation management systems has left supply chain management teams wondering what the most effective logistics solution is. This forced shipping software vendors to wonder how to improve their TMS and appeal to more clients. To accomplish better service offerings, a few TMS vendors have gone above and beyond, offering services like freight auditing, like a 3PL might.
What really makes the SaaS TMS shipping software model so effective is the combination of quality tech, services, and convenience. Because SaaS models use the cloud, the shipping software and TMS applications are available conveniently online, wherever you need to access it. This saves money, as there is no installation fee, and IT needs are the responsibility of the vendor. In addition to that, the freight auditing, and other supply chain management services uncover further savings and can also be handled conveniently over the cloud. As technology continues to develop, the TMS shipping software is becoming more advanced and offering better solutions. Cost, convenience, and innovative technology: shippers need to start switching to the SaaS TMS model to optimize their supply chains, that is, if they haven’t already.