Selecting the right Transportation Management System (TMS) software is a critical decision for businesses aiming to optimize their supply chain operations. A robust TMS can revolutionize logistics, offering enhanced visibility, efficiency, and cost savings across various transportation modes. This guide outlines some of the leading TMS providers in the market to help you make an informed choice.
e2open
Headquarters: Austin, Texas
Website: www.e2open.com
Summary: e2open’s transportation management system (TMS) offers a comprehensive solution for planning, procurement, execution, tracking, and settlement of shipments. It supports all modes and regions, catering to both domestic and international logistics needs for shippers, freight forwarders, carriers, and logistics service providers (LSPs).
Descartes
Headquarters: Waterloo, Canada
Website: www.descartes.com
Summary: Descartes provides both a standalone TMS and managed transportation management services. Known for its robust capabilities, it effectively handles domestic and international logistics for shippers and 3PLs across all freight modes. Descartes is recognized for offering a competitive total cost of ownership (TCO).
Blue Yonder
Headquarters: Scottsdale, Arizona
Website: blueyonder.com
Summary: As the largest independent supply chain management (SCM) suite vendor, Blue Yonder offers a powerful platform suitable for large, complex shippers and third-party logistics companies. Their TMS is designed to manage intricate global supply chain requirements. While offering extensive functionality, Blue Yonder’s total cost of ownership (TCO) tends to be higher compared to other TMS platforms.
Blue Yonder Logo Partner
Alt: Blue Yonder Transportation Management System Software Logo – Partner Solution for Global Supply Chains
Manhattan Associates
Headquarters: Atlanta, Georgia
Website: www.manh.com
Summary: Manhattan Associates has a long-standing history in supply chain solutions. Their TMS is inherently integrated with Manhattan’s broader suite of supply chain applications, particularly their Warehouse Management System (WMS). Often considered an add-on to their WMS, Manhattan’s TMS is a strong option, although it comes with a relatively high total cost of ownership.
MercuryGate
Headquarters: Cary, North Carolina
Website: mercurygate.com
Summary: MercuryGate TMS primarily serves a North American customer base but offers a robust platform that supports both domestic and international freight modes for businesses of all sizes. Continuously expanding its capabilities, MercuryGate provides a flexible solution with a competitive cost of ownership. Potential buyers should focus on leveraging its inherent flexibility rather than resorting to custom coding. MercuryGate’s TMS is versatile, supporting 3PLs, brokers, shippers, and private fleet companies.
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Alt: MercuryGate TMS Software Logo – Flexible Transportation Management for Diverse Logistics Needs
Oracle
Headquarters: Redwood Shores, California
Website: www.oracle.com
Summary: Oracle’s TMS is a robust platform designed for large, complex shippers and third-party logistics companies. While traditionally serving larger enterprises, Oracle is increasingly catering to medium-sized shippers and 3PLs. Their system effectively manages global supply chain complexities. Similar to some other enterprise-grade solutions, Oracle’s TMS has a higher total cost of ownership compared to alternatives.
SAP
Headquarters: Walldorf, Germany
Website: www.sap.com
Summary: SAP TMS provides a robust platform with seamless integration into its extensive ecosystem of ERP and SCM software. It’s well-suited for medium to large, complex shippers and 3PLs managing global supply chains. SAP partners with Descartes for specific functionalities, particularly in carrier communication. The total cost of ownership for SAP TMS is generally higher when compared to various other TMS platforms in the market.
SAP TMS Logo
Alt: SAP Transportation Management System Software Logo – Integrated Platform for ERP and SCM
TMC – A Division of C.H. Robinson
Headquarters: Eden Prairie, Minnesota
Website: www.mytmc.com
Summary: TMC’s TMS originated from software developed to support C.H. Robinson’s brokerage operations. It has evolved into a robust TMS with extensive capabilities supporting all modes of domestic and international freight. TMC offers both a standalone TMS and managed transportation management solutions, though it’s particularly recognized for its strong managed TM services. Pricing for the standalone TMS can be complex, requiring thorough investigation. TMC primarily focuses on medium to large shippers, with a total cost of ownership in the mid to high range.
Trimble
Headquarters: Minnetonka, Minnesota
Website: transportation.trimble.com
Summary: Trimble TMS is a robust solution capable of supporting both asset and non-asset-based fleets for shippers and 3PLs. However, it is more commonly adopted by carriers and brokers. Trimble’s TMS is primarily focused on the North American domestic market.
Trimble Logo
Alt: Trimble Transportation Management System Software Logo – Solutions for Asset and Non-Asset Fleets
Uber Freight TMS (formerly Transplace)
Headquarters: San Francisco, California
Website: www.uberfreight.com
Summary: Uber Freight TMS, formerly known as Transplace, is increasingly recognized for its standalone TMS platform, alongside its well-established managed transportation management services. While North American focused, it offers both domestic and international capabilities, with international operations supported through partnerships. Uber Freight TMS is reported to have a relatively competitive total cost of ownership and targets a medium to large shipper customer base.
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Crafting Your TMS Requirements Document: A Strategic Approach
Once you have an overview of the leading transportation management systems, the next crucial step is to develop a comprehensive requirements document. This document is essential for making an objective and well-informed TMS selection. Many companies fall into the trap of making decisions based on initial impressions, which can lead to suboptimal outcomes. A structured requirements document mitigates this risk.
Numerous TMS requirements document templates are available, including resources from the TMS providers mentioned above.
InTek Freight & Logistics RFP Template
Gartner’s Magic Quadrant Analysis Key to TMS Buying Selection Process
These templates offer a solid starting point. To enhance their effectiveness, consider rating each requirement on a scale of 1 to 10 based on its importance to your organization. This prioritization will enable objective evaluation when responses are received, providing a weighted score for each TMS solution’s alignment with your needs.
It’s critical to finalize these ratings before distributing the requirements document and to keep these ratings confidential from TMS vendors until after they have submitted their responses. Adhering to these guidelines helps prevent unintentional bias in the evaluation process.
Key Functionality to Include in Your TMS Requirements Document:
General Functionality
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Scope: Inbound, Outbound, and Intercompany Logistics
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Supported Freight Modes: (e.g., Truckload, LTL, Parcel, Rail, Ocean, Air)
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Domestic and International Capabilities
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Language and Currency Support
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Geographic Data Handling
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Technology Architecture: Cloud-based or On-Premise (Mainframe)
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Scalability to Handle Future Growth
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Flexibility and Customization Options
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Integration Capabilities: Ease of integration with existing systems (ERP, WMS, etc.)
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Data Exchange Formats: Support for Spreadsheets, FTP, EDI, XML, OCR for Document Processing
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Document Management Features
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Freight Specification Capture: Number of fields and flexibility in data capture
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Purchase Order (PO) Support for Inbound Management
Rating and Contracts
- Freight Sourcing and Bid Optimization Tools for RFPs
- Supported Modes for Sourcing – Domestic and International
- Carrier Freight Rating and Contract Management Capabilities
- Load Board Integration
- Instant Quote Conversion to Load Functionality
Strategic and Tactical Planning
- Analytical Tools for Strategic Network Planning
- Daily Execution Tactical Planning and Optimization Features
Operational Planning and Execution
- Freight Order Management Capabilities
- Consolidation, Pooling, and Multi-Stop Optimization
- Daily Operational Optimization and Planning Tools
- Carrier Assignment and Communication Features
- Appointment Scheduling and Management
Optimization Engine
- Data Parameters Considered in Optimization Algorithms
- Seamless Transition from Optimization to Execution
Dedicated Fleet Management and Non-Asset Integration
- Features for Managing Private Fleets alongside For-Hire Carriers
- Reporting and Visibility Across All Transportation Activities
Tracking and Visibility
- Real-time Track & Trace Capabilities
- Exception and Alert Management & Reporting
Web Portal Capabilities
- Customer-Facing Web Portal – Branding and Customization Options
- User-Specific Portal Access and Permissions
TMS Market Analysis
Alt: Transportation Management System Software Market Analysis – Evaluating TMS Solutions
Settlement and Payment
- Freight Audit, Payment, and Settlement Processing
- OCR Support for Carrier Invoice Processing and Document Management
- Customer Billing Functionality
- Output Options for Settlement and Billing (Electronic, Email, EDI, Mail, etc.)
Analytics and Reporting
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Comprehensive Analytics Capabilities
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Configurable and Flexible Reporting Tools
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Ad-Hoc Reporting Functionality
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Standard/Static Reporting Options
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Dashboards for Real-time Performance Monitoring
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Advanced Analytics for Strategic Decision-Making
After receiving responses from TMS vendors, thoroughly analyze the findings. Focus on areas of high importance that are not standard TMS functionality. Key questions to explore with potential TMS providers include:
- Ability to develop custom code for specific requirements.
- Associated costs for custom development.
- Willingness to incorporate custom code into the base TMS product.
This last point is often overlooked but is crucial. If custom code remains outside the base product, subsequent TMS upgrades may present challenges and additional costs to maintain compatibility. Lagging behind on upgrades can quickly render your TMS outdated and less effective.
As you narrow down your selection to the top 3 vendors, schedule in-depth demos and further refine your decision. Throughout the entire evaluation process, focus on questions that will:
- Provide a complete understanding of the total cost of ownership (TCO).
- Clarify the types of customers the vendor best serves and seeks to partner with.
- Facilitate building rapport with the implementation and support teams for long-term partnership.
- Offer confidence in the vendor’s future platform development roadmap.
- Detail the TMS implementation process and timeline, including time-to-benefit realization.
Selecting TMS software is a significant commitment. Choosing the right system is akin to a long-term partnership. A well-informed decision will foster a mutually beneficial and successful relationship for years, while a poor choice can be costly and disruptive.
For further insights, consider reviewing “Top 10 Transportation Management Software (TMS) Implementation Pitfalls to Avoid” and “Gartner’s Magic Quadrant Analysis Key to TMS Buying Selection Process.”
For a deeper dive into TMS software and the market, explore “The Complete Guide to TMS Freight Software: Market, Capabilities and Solutions for Shippers.” This comprehensive guide covers:
- Introduction to Transportation Management Software (TMS)
- Key Benefits of a TMS
- Top Trends in Transportation Management System Solutions
- Top TMS Systems & Functionality
- Cost Considerations for Transportation Management Systems
- TMS Implementation Best Practices
- Differences Between TMS and Managed Transportation Services
We hope this information is valuable in your TMS selection journey. Contact us to discuss your transportation management software (TMS) needs or explore our managed transportation services. Please fill out our brief form to connect with our team.
Learn more about InTek Freight & Logistics and subscribe to our blog for more logistics insights.
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