Supply chain leaders recognize the value of a transportation management system (TMS). Unfortunately, adoption rates across the country continue to reflect the sub-standard use of a TMS to manage freight spend resulting from shippers that failed to realize the value of a TMS as few as 66% of US shippers take advantage of a transportation management system. The only way to drive TMS adoption rates lies within creating a successful business case for TMS implementation for those that are not necessarily involved in the supply chain process.
A successful business case for TMS implementation must begin with understanding the barriers to TMS adoption. These barriers reveal why supply chain leaders fall short of obtaining shareholder and IT shareholder support for implementation. Recognizing these issues in today’s current supply chain processes is integral to the development of a business case itself. Key barriers include:
Without focusing too much on the diversity of TMS solutions on the market, it is crucial to understand the primary benefits provided by a TMS. For example, a dedicated, modern TMS, reports Supply Chain 24/7, offers these advantages:
After taking the time to recognize the limits of current operations, as well as the benefits of TMS implementation, it is time to begin building the business case for TMS selection criteria, implementation, and maintenance. As with any change to operations or system use, the business case must clearly define each action, how it will benefit an organization, recognize the value gained from implementation and provide a general timeline to return on investment. Although the exact business case will vary based on a shipper’s unique needs, the best business case must include these core characteristics:
Building the business case for TMS implementation is a complicated process. However, the reward outweighs the risk. Supply chain professionals that suffer from the challenges of traditional, manual, and expensive methods need to start building the business case for an advanced TMS today. Every second delayed between now and implementation is a lost opportunity for savings.
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