What Are the Benefits of a Hosted TMS?

Utilizing a hosted TMS solution does provide certain benefits. It may be designed to work seamlessly and together with your existing legacy ERP platforms. Since the solution resides in house, shippers have fast control over its resources and functions. They control the maintenance, upkeep, and improvement of the system. This is an excellent point for maintaining cost control over TMS implementation and maintenance.

What About Cloud-Based TMS?

Cloud-based TMS leverages cloud computing technologies to move the entire platform off-premise. In other words, the data and platform reside within the cloud, so information is continuously logged between access points and the cloud itself. This information also updates in real time, depending on the level of connectivity within your facilities. As a result, the risks of data loss decrease. Furthermore, cloud-based platforms are designed with integration between different systems in mind. They leverage the latest connection technologies, such as electronic data interchange and application programming interfaces (EDI and API), to enable integration with legacy systems. More importantly, cloud-based platforms are more versatile, allowing for a more diverse group of functions than their on-premise counterparts.

Is a Hosted or Cloud-Based TMS the Better Option?

That is a loaded question. It really all depends on the ability of your operation to continue within its current profit margins without risking setbacks from your competitors’ advantages. Amazon will come for your organization. It is only a matter of time. The value of a TMS on a cloud-based platform offers critical benefits over on-premise solutions. These include:

• Reduce the need to store equipment, software, and servers, as well as employ additional IT staff to handle the system’s quirks and needs.
• It generally costs less than on-premise platforms, but again, extensive modification of cloud-based systems could adversely affect the return on investment.
• Cloud-based solutions are also designed with scalability in mind, leveling the playing field for smaller companies, critical to ensuring small businesses can compete with the likes of Amazon and major retailers on the planet.
• Cloud computing allows for centralized access, reducing barriers to system use and adoption. Since the system resides within the cloud, virtually any user within your organization could access the system, enabling more of remote working and less time spent change to the proverbial desk.
• Cloud-based platforms offer cybersecurity advantages too. In today’s age, the slightest data breach could result in severe consequences for an organization, including a sense of betrayal among your consumers, penalties assessed by government authorities, and more. Cloud computing eliminates the physical, cybersecurity risk, and it empowers operations with the latest encryption protocols, including the AES 256 standard.
• Advanced capabilities and cloud solutions empower shippers with more information through big data analytics. Big data analytics are resource-consuming functions, and it is impractical to attempts deployment with outburst using a cloud-based platform. The connected nature of the cloud leverages real-time data through many algorithms and cross-sectional analyses to render the most important metrics and ensure your organization headlines with key performance indicators (KPIs).