Better Use IT Funds in 2023: The Cost-Saving Benefits of a SaaS-Based TMS
Macroeconomic uncertainty is impacting all markets and companies. With predictions of rough waters ahead, many businesses are battening down the hatches. Trucking and logistics companies have felt squeezed by two vices: declining freight rates and inflation.
To defend profit margins from further erosion, companies are reevaluating budgets and assessing cost-savings opportunities before they enter 2023.
Many companies, unfortunately, have become accustomed to compromising when it comes to budgeting their IT funds. They have to make tough financial decisions between supporting what they currently have versus what technology they need to make their businesses run more smoothly.
Such is often the case when using a traditional client-server transportation management system (TMS). The recurring overhead from hardware, maintenance, storage, training, and more add up and get in the way of putting money where it will make a real difference.
If you want to make better use of IT funds — and who doesn’t? — the best strategy is to invest in technology today that can yield immediate returns and higher future profits by permanently reducing the cost of doing business. For this reason and others, the right time to switch to an enterprise, SaaS-based TMS platform that works for you and with you – is now.
Better yet, choosing a SaaS model that is all-inclusive with product offerings, support and integrated services will eliminate the need to compromise and instead introduce financial and operational resiliency.
The Benefits of an All-Inclusive Subscription
Magnus Technologies sees and understands the financial pressures that fleets are feeling today. That’s why we deploy modern, SaaS-based TMS technology through an all-inclusive subscription that has no upfront costs. Fleets can save thousands of dollars per month by making the switch from a traditional, client-server model, which no longer meets the needs of today’s fleets, to a full-featured, cloud-based TMS.
Rather than be saddled by intricate, variable pricing models with user-based licensing fees and extra charges for add-on modules, our technology offers the opposite experience for fleets. By design, Magnus Technologies TMS eliminates the overhead cost of servers, software upgrades, training, support, and more.
How exactly does it work? Pricing for the Magnus TMS is a monthly subscription based on a per-truck fee (with periodic adjustments for actual truck utilization). The cost includes unlimited log-ins, implementation and training, all EDI setup and maintenance, hosting, backups, server maintenance and cybersecurity, and customer-driven enhancements and upgrades.
What About Third-Party Integrations?
Most TMS platforms charge extra for anything outside the box, including implementation fees, transaction charges, and critical third-party integrations. These extra charges can quickly add up, which no fleet wants to be surprised with or have to compromise by picking and choosing integrations based on what they can afford, versus what they need.
Consider how many integrations companies need to support and simplify how they share data with customers and with internal and third-party systems. Here’s a few:
- EDI: To conduct routine transactions and to strengthen communication and supply chain visibility with customers.
- ELDs: To enable connections that feed real-time data on key elements like hours of service, vehicle speeds, and equipment locations to operations and to customers.
- ERPs & Applications: To centralize order entry processes for increasing productivity and providing end-to-end visibility by aligning the TMS and ERP software.
- Fuel & Driver Credit Cards: To integrate fuel data and driver trip expenses from card providers to pre-authorize fuel purchases, send advances, and pay expenses directly from the TMS.
- Accounting & Payroll: To unite operations and back-office functions by connecting the TMS to accounting systems.
These integrations introduce greater efficiencies into a fleet’s operation, and they shouldn’t be met with overbearing financial consequences. With Magnus, third-party integrations are part of implementation, not an afterthought. The price stays the same—no matter what.
Our technology is truly built for fleets—how you operate today and how you’ll need to operate tomorrow and beyond. When you’re ready to shift to a modern, cloud-based TMS, contact us to schedule a demo at (877) 381-4632 or email@example.com. You can also download our latest guide on how fleets can fight inflation by using a modern, SaaS-based TMS.