December 10, 2013 | Written by: Anu George
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The opportunity to optimize transportation and supply chain planning is greater than ever before, and many organizations are starting to understand the importance of Transportation Management System (TMS) in supply chain management. With Software-as-a-Service changing the game by making solutions that were once only available to those with deep pockets much more accessible and less risky, leading organizations are expanding their current supply chain capabilities by taking advantage of TMS delivered as SaaS. TMS as a service has made it easier than ever to facilitate planning, execution, management, and measurement—the key cornerstones of transportation.
Why is it, then, that so many companies are slow to adopt? Many organizations cite four factors that keep them from implementing a TMS solution:
- Cost: Cost is often given as a reason for not embracing TMS. But companies that implement TMS see excellent returns on their investments, and these days, most TMS systems require no capital investment.
- Time: For many organizations, SaaS TMS implementations can be completed within a month. And rapid deployment means faster ROI.
- Lack of expertise: Not having the expertise to implement a solution is no longer a barrier, either. TMS can be bundled with managed services, which can be implemented regardless of geography or operating platform.
- Conflicting priority: It can be hard to get TMS considered when there are so many competing concerns. But as the benefits become more obvious, executives are realizing that TMS is actually aligned with their strategic goals.
Change can be challenging—but failure to change can be damaging. For many companies, the solution to overcoming these barriers is to start small, demonstrate value and ROI, and allow the savings of the initial rollout to fund the next steps.
Watch this webinar with Ted Zeigler, Vice President at ABF Supply Chain solutions, to get an in-depth look at the benefits of TMS as a service. Find out how companies are reducing direct and indirect costs, driving improved quality of services, and increasing visibility to ensure better performance with transportation management solutions.