Which Transportation Management System is Right For You?

Which Transportation Management System is Right For You?

While at a the CSCMP Annual Global Conference this week, I was asked my thoughts on a number of different Transportation Management Systems (TMS), ours for Microsoft Dynamics AX included. I was surprised about the airs that people put on when I said I don’t know what the best TMS system is on the market now, but I can tell you the right one for you.

There are many consultants that want to talk your ear off why one Transportation Management System is better than another, and I heard this a lot this week. My warning is that you should be cautious of consultants bearing Transportation Management Systems and the end all be all for your transportation issues, because they likely get a huge percentage of the licence fee as well as an hourly rate to implement the system. While we do installations of a number of popular systems, we are unique in that we have a team of seasoned Supply Chain Professionals  in our Strategy Division that will work with your and your company to develop an overall Supply Chain Strategy before we ever consider what software will help you execute that strategy.

For an idea of how this works, here is a typical exchange between a Transportation Manager and a typical Supply Chain Consultant.

Manager, “My Company is paying too much for freight.”

Typical Consultant, “You need a Transportation Management System.”

One of the reasons that we have been asked back to customers time and time again is that we look at problems a little different. When presented with a customer that is paying too much for freight, we start by asking the tough questions.

Manager, “My company is paying too much for freight.”

Non-Typical Consultant, “Tell me about how you are shipping your products, where you are shipping them from, and what types of carriers you are using.”

We then dive deep into our customers operations and data in order to determine the best overall strategy across their supply chain and not just Transportation. While this might seem like overdoing it for companies just looking to solve transportation cost issues, there can be a multitude of factors before the load ever hits transportation planning that can drastically reduce the transportation expense. When I see a consultant that is solely focused on transportation, I know that they are missing 80% of the picture and can cause long term issues for clients post-go live.

When you are looking at transportation expenses, don’t assume that a Transportation Management System will fix all of your problems. Our team has decades of experience across procurement, warehousing, technology, and transportation. They can bring not only the implementation of popular systems, but a strategy that you can take with you after you get promoted for not only implementing a rock solid TMS, but delivering an overall strategy for your organization that will increase cash flow and reduce your overall supply chain expenses.

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