4 challenges your company must take into account when installing a TMS

As new logistics software solutions are being created to improve part of the supply chain processes, there are also challenges or mistakes that are often made in the use and installation of a TMS system. While it is true that more and more companies are taking the step to digitize and optimize transportation management, it is possible that operations are not performing as well as expected.

Se queste irregolarità non vengono affrontate, si perde la fiducia nel sistema di soluzioni logistiche, con conseguente insoddisfazione dei clienti e dell'azienda. Quindi, quali sono gli errori o le sfide più comuni quando si implementa e si applica efficacemente un TMS? Va notato che si stima che tra il 20% and 30% of the companies actively use a TMS.

If you want to know the most common challenges when installing a TMS and using it effectively, take a look!

Data collection

One of the challenges in installing a TMS that are also important and notable in the supply chain is that logistics operators and carriers are not yet able to reconcile their data. Such a challenge poses a problem in case there are service failures that have not yet been detected.

It is evident that every company in every part of the supply chain collects separate KPIs or SLAs from those that are stored on their own servers and systems. By the time dashboards are made for analysts or errors are reported via e-mails or spreadsheets, the information received is usually not accurate and the process is very tedious.

Therefore, it is important that the TMS or other similar software such as an ERP be able to collect and share data from both operators and carriers, avoiding irrelevant or erroneous information. However, it is recommended that such sharing can be done as smoothly and efficiently as possible, avoiding delays that cause misinformation about the status of transport.

Revisione della strategia

Before considering installing a TMS, as with any project, it is essential to establish a solid and realistic strategy in order to assign coherent objectives related to this action. In addition, all documents on departments, carriers, among others, must be updated and in order to start implementing them in the TMS.

However, it is possible that the TMS may begin to show unsatisfactory results or detect more frequent and more serious errors. In the event that the TMS does not have many problems collecting accurate information, one of the most likely cases is that the current strategy has become obsolete due to internal company or external changes affecting a large part of the industry.

In such a case, the established strategies and objectives should be revisited to see if they fit with the current landscape. If inconsistencies are detected, the strategies and objectives need to be redirected. An example would be if there have been very large changes in fleet volume, either a reduction or expansion of vehicles and carriers.

Good integration with ERP and third-party applications

TMSs are often designed to integrate with other software used by the company, such as an ERP or WMS. While this seems like a relatively straightforward step, integration often has several technical challenges, and this is one of the most complex challenges when installing a TMS.

An example is that the TMS is applied with a specific data format, in most cases compatible with other software used by the company. However, there may be an application used by another department that has a different data format. In this case, the process of reformatting the data requires more time to process.

Another aspect to take into account is the scalability of the TMS, i.e., that the hardware can be well adapted when you want to upgrade the main modules and add new ones. In the case of a customized TMS, the acquisition of additional hardware and software is required, but in the case of a SaaS TMS, it is sufficient to increase the monthly plan.

TMS implementation and maintenance pricing and costs

Each TMS has its own prices and/or monthly costs according to its modality, whether it is a hardware installation or a SaaS platform. This is a very important detail to take into account when it comes to controlling transportation and supply chain management costs.

The differences between these methods are that an installation is paid for once and can be deployed indefinitely, but includes additional software and even hardware maintenance costs. On the other hand, a platform installed in the cloud does not require additional hardware and is usually paid for on a monthly subscription basis.

Conclusion

Implementing a TMS, regardless of the modality and with more or less modules, requires a rigorous preparation and adaptation work with the assigned strategies and budget. If this preparation is not carried out, resources would be wasted and the results would be unsatisfactory, generating distrust of the product as a result. For this, it is advisable to study and ask for advice on the TMS software option that best suits the needs and current state of the transport fleet.

At Hedyla we offer customized solutions with modules that can be added or removed at the customer's request with various payment plans and adaptable to the rest of the company's software.