Anything that impedes progress for your transportation company must be removed or replaced. It’s only a matter of time. In some cases, survival depends on it. For instance, why keep an unreliable vehicle, an unsafe driver, an unprofitable customer, or an outdated software system?
Regarding the latter, those clinging to traditional on-premise Transportation Management Systems (TMS) may be getting by. While keeping what you have may seem like a stable, cost-effective approach, the costs of falling behind in technology outweigh modernization's short—and long-term benefits.
This article shows how a modern, multi-tenant SaaS-based TMS makes it easier to save money and maintain an advantage in this highly competitive and fragmented industry.
Traditional, on-premise TMSs have high maintenance and support fees. This offers little investment value because vendors typically do not include new upgrades and enhancements in the contract.
A modern, SaaS-based TMS includes continuous updates with a subscription at no additional cost. This keeps customers at the forefront of technology on the same software version, benefitting from an investment model that eliminates upfront hardware and storage costs and licensing. You also get:
To stay ahead of competitors, it also pays to have a TMS platform that can transform your business in five critical areas:
A modern TMS should offer unprecedented flexibility to design workflows that set your business apart in the minds of employees and customers. For instance, consider the challenge of adopting new models for driver pay. An outdated TMS will lack the capabilities to create sophisticated payment models for scenarios like:
API-driven architecture has become the cornerstone of modern TMS solutions. Traditional client-server systems struggle with integration, often requiring costly upgrades and delays. In contrast, multi-tenant platforms offer immediate, cost-free connections with electronic Logging Devices (ELDs), trailer tracking systems, fuel card platforms, and much more.
These integrations happen instantaneously across the entire customer base, eliminating delays and fragmentation typical of older systems. Companies no longer need to invest heavily or wait months to access new capabilities.
Modern TMS platforms transform load planning from yesteryear's grid-based, data-entry nightmare to an intuitive, visual experience. The new approach provides a comprehensive view of operations on a single screen, enabling informed decisions regardless of user experience level.
For instance, key load planning innovations in the Magnus Platform include:
The order management lifecycle has evolved from a manual, time-consuming process to a streamlined, rules-driven workflow. One of the most critical features is the ability to immediately review and accept incoming customer orders before competitors respond faster.
Another advantage of using a multi-tenant SaaS is connecting with customers through electronic data interchange (EDI), APIs, and other protocols. With the Magnus Platform, the cost of setting up the connections is included in the subscription. Additionally, users get an automated rules engine to self-manage order tender acceptance.
A fully integrated mobile application has become crucial for maximizing the value of a TMS investment. Through a mobile app, office personnel can plan loads and immediately send them to drivers in sequence. The app provides all the tools to execute the plan and manage inevitably occurring exceptions.
For instance, the Magnus Driver App extends the power of the SaaS-based TMS to the field, enabling comprehensive fleet management inside and outside the cab by:
Migrating to a modern TMS is a monumental decision, but delaying it will only add costs and inefficiencies at a critical time. Plus, if competitors make the first move, the costs of postponing become more than monetary. Losing technological advantages could result in future opportunities and market share loss.
In transportation and logistics, standing still is equivalent to moving backward. Technology inertia often prevents companies from moving forward, though it shouldn’t. As this article shows, the benefits of moving to a modern, multi-tenant SaaS TMS far outweigh the risks of investing in a proven solution that delivers immediate returns.
Ready to eliminate hidden TMS costs?
Don’t let outdated technology hold you back. Schedule a demo today to see how a modern, multi-tenant SaaS TMS can transform your operations, reduce costs, and deliver continuous innovation.