In today’s fast-paced and interconnected global market, efficient transportation and logistics are critical for business success. Transportation Software, often referred to as a Transportation Management System (TMS), has emerged as an indispensable tool for companies seeking to optimize their supply chain operations, reduce costs, and enhance customer satisfaction. Selecting the right transportation software is a significant decision that can profoundly impact a company’s efficiency and profitability. This guide provides an overview of leading transportation software providers and key considerations to help businesses make informed choices.
E2open
Headquarters: Austin, Texas
Website: www.e2open.com
Summary: E2open’s transportation management system is designed to provide comprehensive control over the entire shipment lifecycle. It offers functionalities for planning, procurement, execution, tracking, and settlement of shipments across all modes and regions. This transportation software caters to a wide range of users, including shippers, freight forwarders, carriers, and logistics service providers (LSPs), supporting both domestic and international logistics operations.
Descartes
Headquarters: Waterloo, Canada
Website: www.descartes.com
Summary: Descartes offers versatile transportation software solutions, including both stand-alone TMS and managed transportation management services. Known for its robust capabilities, this platform supports domestic and international freight operations across all modes. Descartes is a competitive option for shippers and 3PLs looking for a transportation software solution that balances functionality and total cost of ownership.
Blue Yonder
Headquarters: Scottsdale, Arizona
Website: blueyonder.com
Summary: Blue Yonder stands out as a leading independent supply chain management suite vendor. Their transportation software platform is particularly well-suited for large, complex shippers and third-party logistics companies managing intricate global supply chain requirements. While offering a comprehensive suite of features, it’s important to note that the total cost of ownership (TCO) for Blue Yonder’s transportation software can be higher compared to some other platforms.
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Manhattan Associates
Headquarters: Atlanta, Georgia
Website: www.manh.com
Summary: With a strong history spanning nearly three decades, Manhattan Associates offers transportation software that seamlessly integrates with their broader suite of supply chain applications. Their TMS is often implemented as an extension to their Warehouse Management System (WMS). Manhattan’s transportation software is a robust option, especially for companies already invested in their ecosystem, though the TCO is considered relatively high.
MercuryGate
Headquarters: Cary, North Carolina
Website: mercurygate.com
Summary: MercuryGate’s transportation software is a robust and adaptable platform serving a diverse customer base, primarily in North America, but with growing international capabilities. It supports both domestic and international freight modes for businesses of all sizes. MercuryGate is recognized for its continuous feature enhancements and competitive cost of ownership. Potential buyers should explore the platform’s flexibility to ensure it aligns with their specific needs, balancing configuration with custom coding. This TMS effectively supports 3PLs, brokers, shippers, and private fleet companies.
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Oracle
Headquarters: Redwood Shores, California
Website: www.oracle.com
Summary: Oracle provides a robust transportation software platform designed for large, complex shippers and third-party logistics companies. While traditionally catering to larger enterprises, Oracle’s TMS is increasingly accessible to medium-sized shippers and 3PLs. It excels in managing global supply chain requirements effectively. Similar to other enterprise-level solutions, the total cost of ownership for Oracle’s transportation software is typically higher than some alternatives.
SAP
Headquarters: Walldorf, Germany
Website: www.sap.com
Summary: SAP’s transportation software offers a robust platform that integrates seamlessly with its extensive suite of ERP and SCM products. It is well-suited for medium and large complex shippers and 3PLs managing global supply chains. SAP’s TMS leverages partnerships, such as with Descartes for carrier communication functionalities, to enhance its capabilities. The total cost of ownership for SAP transportation software is generally higher compared to various other TMS platforms.
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TMC – A Division of C.H. Robinson
Headquarters: Eden Prairie, Minnesota
Website: www.mytmc.com
Summary: TMC, a division of C.H. Robinson, developed its transportation software to support its brokerage operations. This TMS has evolved into a robust solution with extensive capabilities for managing all modes of domestic and international freight. TMC offers both a stand-alone TMS and managed transportation management solutions, with a strong reputation for its managed services. While powerful, pricing for the stand-alone TMS can be complex, requiring careful evaluation. TMC’s transportation software is typically focused on medium to large shippers, with a mid-to-high range TCO.
Trimble
Headquarters: Minnetonka, Minnesota
Website: transportation.trimble.com
Summary: Trimble’s transportation software is a robust TMS capable of supporting both asset and non-asset based operations for shippers and 3PLs. While versatile, it is frequently adopted by carriers and brokers. Trimble’s TMS is primarily focused on the North American domestic market, offering strong functionalities for these regions.
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Uber Freight TMS (formerly Transplace)
Headquarters: San Francisco, California
Website: www.uberfreight.com
Summary: Uber Freight TMS, formerly Transplace, is increasingly recognized for its standalone transportation software platform, alongside its well-established managed transportation management services. This TMS is primarily focused on the North American market, offering both domestic and international capabilities, with international operations supported through partnerships. Uber Freight TMS is considered to have a relatively competitive TCO and is generally targeted towards medium to large shipper customer bases.
Key Considerations When Selecting Transportation Software
Choosing the right transportation software is a critical decision. To make an objective and effective choice, businesses should develop a comprehensive requirements document. Relying solely on initial impressions or excitement can lead to suboptimal decisions. A well-structured TMS requirements document is essential for a thorough evaluation process.
Several resources can assist in creating this document. Templates from leading TMS providers and industry analyses, such as the InTek Freight & Logistics RFP Template and Gartner’s Magic Quadrant Analysis Key to TMS Buying Selection Process, offer excellent starting points.
Enhance these templates by prioritizing requirements based on your company’s specific needs. A rating system, scoring each requirement from 1 to 10 based on its importance, can significantly aid in objective decision-making. This scoring should be completed before distributing the document to vendors and remain unseen by them until after they have submitted their responses to prevent bias.
Essential Functionality to Include in Your TMS Requirements Document
A comprehensive TMS requirements document should cover a range of functionalities. Key areas to consider include:
General Functionality
- Scope of Operations: Does the software support inbound, outbound, and intercompany shipments?
- Mode Compatibility: Which freight modes are supported (e.g., truckload, less-than-truckload, parcel, rail, ocean, air)?
- Geographical Capabilities: Does it handle domestic and international shipments effectively?
- Multi-Language and Currency Support: Is the software adaptable for global operations, supporting multiple languages and currencies?
- Geographic Data: Does it manage geographic data effectively for routing and optimization?
- Technology Architecture: Is the system cloud-based or mainframe? Consider scalability, flexibility, and accessibility.
- Integration Capabilities: How easily does the TMS integrate with existing systems (ERP, WMS, etc.)?
- Document Compatibility: What document formats are supported (spreadsheets, FTP, EDI, XML, OCR)?
- Document Management: Does it offer robust document management features?
- Freight Specification Capture: How many fields are available for capturing freight specifications, and how flexible is the system?
- Purchase Order (PO) Support: Does it support POs for inbound management?
Rating and Contracts
- Freight Sourcing and Bid Optimization: Does it include tools for freight sourcing and bid RFP optimization?
- Mode Support for Sourcing: Are both domestic and international modes supported in sourcing and bidding?
- Carrier Freight Rating and Contract Management: How effectively does it manage carrier freight rates and contracts?
- Load Board Integration: Does it integrate with load boards for expanded carrier options?
- Quote Conversion: Can quotes be quickly converted into loads?
Strategic and Tactical Planning
- Analytical Tools for Strategic Planning: Does it provide analytical tools for long-term strategic planning?
- Tactical Planning Support: Does it support daily execution and tactical planning needs?
Operational Planning and Execution
- Freight Order Management: Robust capabilities for managing freight orders.
- Consolidation and Pooling: Features for shipment consolidation, pooling, and managing stop-offs to optimize loads.
- Daily Optimization: Tools for daily operational optimization and planning.
- Carrier Communication: Effective carrier assignment and communication tools.
- Appointment Management: Features for managing appointments and scheduling.
Optimization Engine
- Optimization Data: What data points are considered in the optimization engine?
- Execution Integration: Can optimization plans be immediately moved to execution?
Dedicated Fleet and Non-Asset Management
- Dedicated Fleet Optimization: Capabilities for optimizing dedicated fleets.
- Non-Asset Requirements: Support for non-asset based transportation needs.
- Reporting and Visibility: Reporting and visibility for both dedicated and non-asset operations.
- Track & Trace: Real-time track and trace capabilities.
- Exception Alerts: Automated exception alerts and reporting.
Web Portals
- Customer and Carrier Portals: Does it offer web portals for customers and carriers?
- Branding and Customization: Can portals be branded and customized?
- User-Specific Access: Can access be assigned and controlled by user ID?
Settlement
- Freight Audit and Payment: Integrated freight audit, payment, and settlement functionalities.
- Invoice Processing: Support for OCR for carrier invoices and document management to streamline processing.
- Customer Billing: Features for customer billing.
- Payment Methods: Support for various payment methods (electronic, email, EDI, mail, etc.).
TMS analysis
Analytics
- Reporting Capabilities: Configurable and flexible reporting tools.
- Report Types: Support for ad-hoc and static reports.
- Dashboards: Informative dashboards for operational visibility.
- Advanced Analytics: Advanced analytics to support strategic decision-making.
Following the initial responses, engage in deeper discussions with vendors, particularly on high-priority, non-standard functionalities. Key questions to ask include:
- Custom Coding: Can the software provider develop custom code to meet specific requirements?
- Customization Costs: What are the costs associated with custom development?
- Base Code Integration: Is the vendor willing to incorporate custom code into the base software code? This is crucial for long-term maintainability and avoiding issues with future upgrades. Code not integrated into the base software can create complications and costs with each system upgrade, potentially leading to an outdated and uncompetitive TMS.
Narrow down your options to the top 3 vendors for demos and further evaluation. Throughout the entire selection process, focus on questions that will:
- Total Cost of Ownership (TCO): Provide a comprehensive understanding of the TCO, including implementation, maintenance, and potential customization costs.
- Ideal Customer Profile: Clarify the types of customers the vendor best serves and seeks to add to their portfolio. Ensure your company profile aligns with their ideal customer.
- Vendor Partnership: Facilitate getting to know the team you will be working with for integration and long-term support. Understand their vision for the platform’s future development.
- Overall Confidence: Ensure confidence in making the right decision for your team and company, both for current needs and future growth.
- Implementation Process: Understand the TMS implementation process, including timelines and expected time to realize benefits.
Selecting transportation software is a significant commitment. View it as a long-term partnership. The right choice will foster a mutually beneficial and successful relationship for years, while a poor decision can lead to costly and disruptive changes.
For further insights, consider reading “Top 10 Transportation Management Software (TMS) Implementation Pitfalls to Avoid” and “Gartner’s Magic Quadrant Analysis Key to TMS Buying Selection Process“.
For an in-depth exploration of TMS software and the market, refer to “The Complete Guide to TMS Freight Software: Market, Capabilities and Solutions for Shippers“. This guide covers:
- Introduction to Transportation Management Software (TMS)
- Key Benefits of a TMS
- Top Trends in Transportation Management System Solutions
- Top Transportation Management Systems & Functionality
- Cost of Transportation Management Systems
- TMS Implementation
- Differences Between TMS and Managed Transportation Services
We hope this information is valuable in your transportation software selection journey. InTek Freight & Logistics is ready to assist with your transportation management software (TMS) selection and managed transportation services discussions. Please fill out our brief form to connect with our experts.
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