Changing SaaS-Based TMS Models Will Drive Higher SaaS Adoption

The proliferation of SaaS platforms remains among the top TMS 2020 trends. The proliferation of platforms has also changed how organizations view investment and consider upfront costs versus time to ROI. Furthermore, software vendors now offer multiple launch options, including free or low-cost options. For example, Eric Johnson of Journal of Commerce explains:

“That proliferation has coincided with the rise of the so-called “freemium” model, whereby browser-based software providers offer two versions of a system: one free or low-cost version designed to gain traction from buyers and induce them to eventually pay for a second, premium version designed to drive revenue for the vendor and provide higher value for the user.

For shippers, especially small to midsized ones, this creates a market with many more options. That’s a double-edged sword, of course. Whereas before, the number of TMS providers was manageable even if those systems were out of reach financially (or if a shipper lacked internal capability to fully leverage it), now there are so many choices it can be difficult to determine the right fits in terms of cost and functionality. It can be a paralyzing situation.”

SaaS TMS Moves to Fully Replace Freight Brokers

Part of the interest behind SaaS lies in the ability to effectively replace human workers in the freight management process. Such abilities could replace traditional freight brokers with an automated, virtual process. Of course, companies with limited resources remain reluctant to the full exclusion of humans in freight management. It is important that shippers realize the use of a SaaS TMS does not necessarily replace all relationships. Instead, it serves to augment the collaboration and reduce delays in freight quoting and booking. As a result, it holds additional value for more than SMB shippers. Its use can help freight brokers, freight forwarders, carriers, and business-to-business partners better manage freight. In a sense, the SaaS TMS is on track to fully replace traditional freight brokers, but for 2020, it is likely that the systems will serve to augment the services of freight brokers more than an all-out replacement. 

APIs Streamline Implementation and Connection With Legacy Platforms

Another of the leading TMS 2020 trends surrounds the implementation of systems and their ability to connect with legacy platforms. As reported by Johnson:

“A modern TMS can use application programming interfaces (APIs) to plug into other software providers to extend their capabilities. Trucker Tools, which uses data from a driver-downloaded app to power its load-matching algorithm, partners with a number of TMS providers.”

At the same time, implementing a traditional TMS incurs much more than just investment costs. It requires IT resources and advanced coding knowledge. Depending on the level of modification, i.e., customization of the system, IT costs can easily surpass the cost of the system. As a result, companies forgo implementation and rely on increasingly older systems. Fortunately, this is another area where the TMS 2020 trends involving SaaS stand apart; SaaS platforms are based on user-friendly systems and an easy to implement the process. That includes integration with existing systems.