Five STUPID Reasons Not to Install a TMS System. What’s Your Excuse?

by Johnny Dollar

With the increasing popularity of the Software as a Service (SAAS) approach to upgrading your transportation management ability to optimize the service and freight expense equation related to your carrier base, many savvy transportation managers are implementing a TMS system to compliment existing systems or just to take more effective control of their carrier operational requirements. However, there are still those, for whatever reason, who just can’t seem to see the benefit of a TMS system.

Here are five typical reasons companies give for not implementing a transportation management system. Any of these sound familiar?

⦁    The current “process” works just fine.

⦁    TMS solutions are too expensive.

⦁    We used a TMS before and it didn’t work.

⦁    Freight management software is too expensive to deploy.

⦁    There is no money in the budget for Transportation software.

These are the excuses of a company with a 1950s management mentality and a business philosophy that fails to recognize the strategic opportunity at hand to significantly reduce current operating expense and enhance operating cash flow.

So, what’s wrong with this picture? Do the above excuses hold water? Let’s see, if I pursue implementation and utilization of a web-based TMS system, then WIIFM — What’s in it for me? Well, a few of the benefits might include:

⦁    Typical freight cost reduction is 10% – 15% or more
⦁    TMS SAAS approach doesn’t tie up working capital
⦁    System “pays for itself” via ROI and quick payback
⦁    Web-based TMS makes install and utilization almost idiot-proof
⦁    Using a TMS improves the “current” process 10 times
⦁    Using a TMS significantly improves utilization of right mode, right carrier
⦁    A TMS can be adapted to involve direct factory ship from vendor
⦁    Using a TMS can improve inbound visibility to DC
⦁    A TMS provides carrier management analysis and audit data on carriers
⦁    A TMS provides easy feed for freight invoice audit and payment.

While this list is not exhaustive, even a blind man could see the benefit of pursuing utilization of a TMS. So, what seems to be the problem with your company’s management? Do you need to do a little “selling” on the inside? Trust me, upper management understands and can relate to such things as:  “reduced freight expense,” “improved operating cash flow,” and “ROI and quick payback.” Tried using any of that on your boss lately?

Finally, don’t hesitate to engage an experienced outside resource to help you scope out, price out, and find out just how much you could improve and save by making such a bold move. It doesn’t have to be “in the budget” to get visibility and consideration if it improves operating cash flow. NOW is the time to find out what you have been missing.

Build it and the Cash Will Come!

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