TMS Incumbent or Enterprise Solution? Why an Incumbent Software Provider Might Not be In Your Best Interest

If you’re in the market for a TMS, you don’t want to make a hasty decision – like sticking with a stop-gap TMS incumbent. However, the multitude of options can rush you into choosing the path of least resistance: settling for an incumbent software provider.

ERP solutions, for instance, may offer a TMS add-on or module, but the functionality and flexibility are inferior to a dedicated TMS. The limitations of a TMS incumbent can cause you to miss opportunities. At the same time, an incumbent software provider can exacerbate inefficiencies and come up short of delivering maximum value.

Compared to incumbent TMS solutions, an enterprise TMS offers comprehensive features that significantly improve resource management and overall operational efficiency. Your chosen solution should solve today’s problems and scale to serve your needs for tomorrow.

Read on and discover why selecting an incumbent TMS or software provider might not be in your best interest.

The Lure of Incumbent TMS Solutions

Sticking with an incumbent software provider often means less disruption in the short term but headaches down the road. Incumbent solutions are also tempting when considering the daunting task of IT and finance approval. However, the initial lower costs or bundled pricing of incumbent systems are misleading. As time passes, your operations conform to the limitations of these systems, leading to higher operational costs due to inefficiencies.

Strategic Disadvantages of Not Exploring New TMS Options

Admittedly, free transportation management options or incumbent TMS solutions are a good fit for smaller, less growth-oriented organizations only seeking basic functionality. Yet, for organizations with aspirations beyond the basics, these systems cannot keep pace with more complex logistics requirements, competition, and customer expectations.

Whatever TMS you choose, it needs to align with evolving business needs and the dynamic logistics environment to support short- and long-term goals.

Here’s how a free or add-on TMS solution will cost you:

Cost of Disruptions

Without real-time tracking, disruptions such as delayed shipments or inventory inaccuracies become common, potentially leading to significant operational and customer service costs.

Cost of Missed Opportunities

Operating on a system with limited capabilities may cause you to miss potential partnerships or deals, which can result in missed revenue and growth opportunities.

Cost of Manual Processes

Manual processes for entering data, tracking shipments, and generating reports take valuable time away from employees and increase the risk of human error and delay in decision-making.

Costs of Lackluster Support

As you can imagine, free or incumbent TMS solutions typically offer minimal support, leaving companies with limited resources to troubleshoot issues on their own.

Future Investment Costs

The low cost is the lure, and the “cool features” are the hook. The free or low-cost ride ends once you want to access features that matter most or need customization.

Cost of Limited Automation

Essential automated processes, such as auto-scheduling or carrier rate comparisons, are absent from incumbent TMS software. As your business scales, this results in higher labor costs and inefficiencies.

This is exactly what they mean when they say, “There is no such thing as a free lunch.” Once you peel back the layers, you can see that free, add-on, or incumbent solutions won’t just cost you; they will hold you back.

The Benefits of Seeking Alternative TMS Solutions

Performing due diligence on TMS alternatives dispels misconceptions about enterprise solutions and uncovers capabilities you didn’t know existed.

Here’s how you make the case for an enterprise TMS.

• Reduce Freight and Operational Costs: Features such as advanced visibility and shipment tracking can reduce freight expenses by up to 12% and lower operational costs by up to 5%.
• Return on Investment (ROI): Implementation and integration of a TMS are fast: 3-6 months. This speed is crucial in delivering ROI. In fact, an independent study found that employing Infios' TMS can deliver an ROI in excess of 300% in the first five years.
• Unparalleled Support: Our support portal enhances the experience by providing a platform to create, track, and prioritize support cases. It gives you a single point of contact and an opportunity to provide feedback on completed cases.
• Robust Collaboration: When you choose Infios, your dedicated customer success team is by your side to identify specific business needs and help you achieve greater value.
• Data Analytics: Data analytics is another superpower of an enterprise TMS. It provides insights and opportunities to improve carrier management, last-mile delivery, claims management, and other logistics processes.

These are just a few benefits of choosing Infios' Enterprise TMS solution. Request a demo, and you’ll see firsthand why industry leaders choose Infios and why we continue to be recognized for TMS excellence.

Where Will Your TMS Take You?

Today’s dynamic logistics environment calls for robust TMS solutions that deliver agility, visibility, and growth opportunities.

The limited capabilities of incumbent TMS solutions hinder all of these and put you at a disadvantage. We encourage you to leverage our self-service tool to see the potential value for your organization.