TRANSPORTATION MANAGEMENT SYSTEMS
technologyreview
must-have
features
in a TMS 7
In the market for a new transportation management system?
Here are seven features to look for.
EVEN BY THE STANDARDS OF THE SUPPLY CHAIN software world, transportation management systems
(TMS) have proved to have exceptional legs. After
nearly two decades on the market, these solutions con-
tinue to sell briskly. Last year, revenues generated
through TMS sales and software support grew 11 per-
cent, according to the research firm Gartner Inc. In
fact, Chad Eschinger, an analyst at Gartner, estimates
that in 2010, the global TMS market reached $625 mil-
lion despite the sputtering economy.
That will come as little surprise to those in the business. These solutions have earned widespread renown
for their ability to streamline time-consuming tasks like
carrier selection, routing, and rating as well as their
capacity to save users money—no small consideration
in an era of skyrocketing fuel prices and tight capacity.
What’s less well known is that today’s models can do
much more than handle basic shipment planning tasks.
In addition to managing freight movements and expenditures, the newer, full-featured packages offer capabilities like electronic load tendering, freight analytics, shipment visibility, and freight-bill audit and payment.
If you’re in the market for a TMS, what should you
look for? We asked several industry experts for their
advice. What follows are their recommendations for
“must have” features:
Support for parcel shipping. Early versions of
TMS were geared toward truckload and less-than-
truckload (LTL) moves, the predominant modes of
shipping at the time. But patterns have changed over
the years. As the “inventory is evil” mentality has taken
hold, a lot of customers have begun demanding smaller, more frequent shipments from their suppliers. The
result has been a shift toward parcel shipping.
For that reason, industry experts recommend choosing
a TMS that can handle parcel rating and routing along
with the traditional truckload and LTL comparisons.
“The TMS should be able to evaluate piece vs. hundredweight ratings as well as compare LTL to parcel,” says
Monica Wooden, chief executive officer of TMS developer MercuryGate International Inc. “All too often, these
decisions are based on a fixed weight and they should
take into account distance, packaging, etc.,” she adds.
Support for international movements. The
first transportation systems on the market concentrated on domestic moves. But in today’s global economy,
most companies will need a program that can also
select air and ocean carriers and manage international
shipments. Gartner analyst Dwight Klappich recommends choosing a solution that can “support all modes
in a common platform” and make rate and service
comparisons among those modes.
Wooden advises shippers to look for a TMS that can
provide multi-language interface screens and supports
the use of foreign currencies. On top of that, the solution should be able to calculate any cross-border fees,
