Is changing your transportation management system (TMS) too risky? Suppose you find a new, more affordable, and feature-rich platform. Do you hesitate to purchase and deploy it? 

Many would hit the pause button to avoid disruption risks, front-line resistance, and other business challenges. However, in this low-margin, ultra-competitive industry, businesses that adopt the "if it ain't broke, don't fix it" strategy put themselves at greater risk.

You cannot afford to fall behind on technology, yet the success of adopting new technology cannot be guaranteed. However, choosing a modern TMS platform will mitigate many risks.

The first step to success is answering these five questions about your list of candidates. TMS solutions that pass this first elimination round should address your underlying concerns, allowing you to move forward confidently.

1. How will this TMS integrate with your existing systems?

A modern TMS platform must have plug-and-play capabilities that keep you moving in this fast-paced industry. You cannot afford to pay extra or wait weeks and months to connect a new system with your internal and external applications.

Replacing a TMS will never be as easy as swapping a game console, like a Nintendo 64, for a PlayStation 5. Still, you can avoid incompatibility problems with a TMS built on APIs that seamlessly transition your data between electronic logging devices (ELDs), trailer tracking, fuel cards, accounting software, and other essential tools.

Modern TMS providers maintain a network of integration vendors and capabilities shared across multiple customers or “tenants.” This approach makes integrations more efficient and practical since third-party integrations can be developed rapidly and shared to reduce implementation time and costs.

2. What is the ROI, and how quickly can we see results?

Cloud-based Software as a Service (SaaS) TMS solutions offer significant financial advantages over traditional on-premises systems. They eliminate the need to manage, purchase, and maintain hardware infrastructure, resulting in substantial savings, particularly for smaller and mid-sized companies that would otherwise need to hire IT staff and regularly upgrade equipment.

The SaaS model also offers scalability benefits. As your business grows, you can incrementally expand your infrastructure footprint without significant upfront investments in hardware and personnel. Conversely, if your business contracts, you can reduce costs accordingly. With traditional, on-premise solutions, prior technology purchases quickly become sunk costs.

In addition to the immediate ROI from reduced overhead costs, you get paybacks from using breakthrough capabilities in modern TMS solutions for load planning and other functions that enable you to manage orders and assets more efficiently. 

3. How customizable is the system for our specific needs?

Modern TMS solutions emphasize configuration instead of customization to get what you need. While no system can cover all possible use cases, a highly configurable TMS allows you to use the software in various ways based on your rules and preferences.

For instance, a TMS might have a module that allows you to set up rules to automatically accept customer orders through EDI and other electronic channels. This same module could also establish parameters that help frontline users instantly evaluate the profitability of incoming orders. 

For genuinely unique requirements, modern TMS platforms take an API-centric approach. This eliminates the need to pay vendors to write custom code, which they may decide to own and market to other customers. Instead, you can develop unique solutions that connect with the TMS through open APIs, allowing you to maintain intellectual property ownership.

This approach prevents you from using outdated custom code that may not be compatible with future system updates from the vendor.

4. How user-friendly is the system for my team?

A modern TMS should offer intuitive screens and functions that do not require technical expertise to master. For example, a load planning screen with map visualizations could provide users with all the information and tools they need to match drivers with loads optimally. The screen can account for all planning details, including trailer pool commitments, network balance, non-freight-related events (such as driver home time), and much more. 

The system should be flexible enough to accommodate different operational styles while maintaining ease of use. When new configuration options are needed, quality TMS providers will incorporate them and make them available to all customers rather than creating one-off solutions.

5. What support and upgrades are included in the package?

The SaaS model fundamentally changes how software updates and support are delivered. Unlike traditional on-premises systems, where upgrades require significant time, money, and effort, SaaS platforms automatically provide new features and capabilities as part of the service. This ensures customers always have access to the latest functionality without the burden of managing complex upgrades.

SaaS providers are inherently motivated to improve their platforms and continuously deliver value. Customers pay monthly and can switch providers if they are dissatisfied. They also provide regular, incremental updates to make changes easy to digest and implement.

In contrast, traditional, on-prem systems create added costs and disruptions by delivering updates in monolithic annual releases, which causes customers to delay migration and fall behind.

Take the Next Step in Your TMS Journey

The shift to cloud-based, multi-tenant TMS solutions offers the best balance of cost efficiency, security, and data integrity while providing options for organizations that may still require single-tenant deployments.

By carefully evaluating potential TMS solutions against these five critical questions, organizations can confidently move forward with a TMS transition and position themselves for success in this competitive industry.

Ready to explore a modern, cloud-based TMS that addresses these critical concerns? Magnus Technologies offers a cutting-edge SaaS TMS platform designed for today's transportation challenges. Our solution combines seamless integration capabilities, rapid ROI, extensive configurability, user-friendly interfaces, and comprehensive support in one powerful package.