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You're wondering why a lack of a Transportation Management System (TMS) solution exists in current operations?

Modern Supply Chains rely heavily on Transportation Management Systems (TMS). Collaborate with a provider to benefit from TMS's essential features and enhance your logistics management.

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3 min read
Modern Logistics Relies Heavily on Transportation Management Systems (TMS). Collaborate with an...
Modern Logistics Relies Heavily on Transportation Management Systems (TMS). Collaborate with an Expert to Integrate This Vital Functionality into Your Supply Chain.

A Final Look at the Fewness of TMS Adoption

You're wondering why a lack of a Transportation Management System (TMS) solution exists in current operations?

Who'd have thought that so few companies would refuse to jump on the TMS (Transportation Management System) bandwagon, given the boundless benefits it offers? Yet, here we are, scratching our heads and wondering why fewer than half of today's businesses don't have a TMS in place.

Let's take a stroll through the darker alleyways of corporate mindsets to shed light on this perplexing issue. A few decades back, I, myself, embarked on a supply chain venture, convinced that our company's expertise, systems, and processes would appeal to customers in need of a reliable freight management service.

Our star offering? An advanced TMS that guaranteed substantial cost savings and exceptional service levels. Yet, surprising as it may seem, many potential clients showed little interest in our lucrative proposition. So, what was stopping them?

Pride

Are you the king or queen of your supply chain castle? Some Supply Chain leaders might take umbrage at the suggestion that someone else could manage their freight better. These individuals may feel that any hint of better cost savings is a not-so-subtle jab at their negotiation skills. However, a true leader knows that best practices and partnerships lead to greater success.

Loss of Control

The idea of relinquishing control over supplier relationships to a third party can cause dread in many procurement professionals. A TMS, they might fear, would take over their relationships and leave them powerless. The truth of the matter is that you can still manage relationships while enjoying the benefits of a TMS, such as expanded logistical reach and improved service levels.

The False Investment Promise

Many companies believe that they'll eventually be able to justify the massive upfront investment required for a homemade TMS solution. The reality? Building your own TMS from scratch is likely a waste of time, money, and resources for small to mid-sized businesses. Instead, consider partnering with a cloud-based TMS solution provider, who has already made the considerable investments in software development, supplier relationships, and more.

Resistance to Change

  1. Fear of Change: The prospect of change can be overwhelming, especially in the face of new technologies and processes. But with proper change management, your company can adapt to the disruptive, yet beneficial, shifts brought about by a TMS.
  2. Time and Resource Constraints: Small businesses often struggle with allocating time and resources to implementing a new TMS. However, the investment is crucial for reaching needed operational efficiencies and cost savings.
  3. Lack of Technical Expertise: For many small businesses, the complexities involved in deploying a TMS can be daunting. Seek out experienced providers that offer simplified integration, training, and ongoing support to help navigate the rollout.

With the advent of cloud-based TMS solutions, there's no reason to stay stuck in the past. Change the game, adopt a TMS, and pave the way to success!

Footnotes:

  1. Some Statistics on TMS Adoption
  2. Barriers to TMS Adoption
  3. Why TMS Is Key to Your Business Success
  4. Challenges in TMS Adoption for Small and Medium-Sized Enterprises (SMEs)

You can find this post's original version here.

  1. Despite the numerous benefits and advancements in technology, some businesses in the industry remain hesitant to adopt Transportation Management Systems (TMS), making it a rare sight in supply chain visibility.
  2. Pride and fear of being perceived as less competent in procurement or logistics can hinder companies from embracing TMS solutions, potentially leading to missed opportunities for cost savings and improved service levels.
  3. The idea of outsourcing control to a third party through TMS can cause concern amongst business leaders, but the truth is that it opens doors to expanded logistical reach and improved service levels without losing control over relationships.
  4. Many businesses may feel daunted by the substantial upfront costs associated with building their own TMS, but partnering with a cloud-based TMS solution provider can lead to more significant benefits without the heavy initial investment.
  5. Resistance to change, time and resource constraints, and lack of technical expertise can hinder small businesses in adopting TMS solutions, but proper change management, ongoing support, and simplified integration can smoothen the process, transforming the business landscape and paving the way for success.

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