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What Is the ROI with Transportation Management Software?

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Are you wondering if investing in a Transportation Management System (TMS) is worth it for your trucking business? Do you want to know - what is the ROI with transportation management software? You're not alone. Many businesses are hesitant about the upfront costs of new technology and may be hesitant to make the investment. The truth is, the right TMS platform, particularly one that's affordable and can be scaled to your company's size, can deliver an exceptional return on investment (ROI). Let's explore the ways a high-quality TMS can help you improve your bottom line and streamline your transportation operations.

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What Value Does TMS Provide for Trucking Companies?

For trucking companies that want to gain an edge on the industry and drive profits, a Transportation Management System (TMS) provides exceptional value. According to a study by Logistics Professor Jim Hendrickson at Ohio State University, TMS solutions boast one of the lowest break-even points within the trucking industry, with most companies experiencing a return on investment within just 6 to 12 months.

This rapid ROI stems from the substantial cost-saving benefits a TMS provides and is a direct benefit for smaller trucking companies. By optimizing routes, streamlining workflows, and automating tasks, trucking companies that employ a quality TMS can reduce annual freight costs by an estimated 5% to 15%. These savings when paired with the operational efficiencies that you gain from a high-quality TMS, translate to a clear advantage for trucking companies looking to improve their bottom line and stay ahead of the game.

How To Measure ROI with a Transportation Management System (TMS)

Measuring the ROI of a quality TMS goes beyond just the initial cost of a TMS platform. To get a clear picture, it is important to track multiple Key Performance Indicators (KPIs) before and after implementing the system. Here is a better look at aspects of your business that you can track and measure to determine the success of your TMS:

  • Lower Costs and Improved Performance - The success of fleet management and TMS solutions can be measured by your operating costs. Lower costs and more efficient operations indicate success.  
  • Increased Visibility of Your Decisions - When you make changes to your fleet management strategy, it is important that you can see how the changes impact your business. A high-quality TMS provides more visibility of operations and allows you to see the impact of any changes quickly, which allows you to make adjustments as needed. 
  • Improved Process Management and Accountability - A quality TMS employs innovative programs that allow you to track important business metrics and processes from end to end and will help eliminate errors throughout the process.
  • More Efficient Use of Resources - When you operate a fleet, it is important to know where your trucks are and what loads they are carrying. TMS solutions will help you track truck locations, routes, and load capacity to help you be more efficient and measure success.
  • Improved Logistics and Results - Logistics and route planning can help you be more efficient on the road and complete more orders in shorter periods of time. Measuring the amount of orders fulfilled may be a good indicator.

READ MORE: What Are the Benefits of Cloud-Based Fleet Management Software?

Do you want to know if a Transportation Management System (TMS) delivers a strong return on investment (ROI)? The answer is a resounding yes when you choose an affordable and scalable TMS platform. A high-quality TMS goes beyond simply managing transportation. It optimizes your entire operation, reducing costs and improving your efficiency and you can expect a rapid ROI in most cases with reduced freight costs and streamlined workflows.

Are you ready to unlock the power of a TMS and see a real difference in your bottom line?  TransPlus is a trusted provider of advanced TMS solutions that are designed to deliver the results you deserve. Contact TransPlus today to discover how our TMS platform can amplify your trucking company's success!

Read our TMS Buyer's Guide

Navigate the TMS software landscape with our comprehensive buyer's guide - find the perfect platform for your trucking business today.

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