With instant access to training and how-to videos online, there are a deep desire to try “do it yourself” (DIY) solutions to problems. While the thought process around DIY is to save money, in many instances it can end up costing a lot more in time, resources, and quality of work than it would if you hired a professional. When shippers use the DIY approach to manage logistics, they may be spending more money on administrative costs while receiving less productivity, visibility, and customer service. This rings especially true for companies who use manual processes instead of a transportation management system (TMS) for logistics planning.
TMS can bring significant cost savings to a company—by using TMS customers save approx 10 per cent but it won’t fix everything on its own. TMS solutions are robust, and while many are easy to use, a trained executive has the experience and knowledge to leverage all of the functionality the software holds. It’s vitally important that a company do a lot of back-end work to achieve success with a new TMS. All of the information imported into the system needs to be up to date and accurate for the TMS to provide maximum benefit in its optimization and analytics reporting. Many outsource transport operations teams have started with a TMS solution and then switched to TaaS after determining that they are not fully utilizing the power of their TMS software.
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