Transportation Management: What’s Holding You Back?

It seems like a no-brainer that companies would want to optimize efficiencies in all departments, so why would Logistics Management Magazine recently report that adoption rates for transportation management software (TMS) are only at 37%? The article also reported that that even some billion dollar companies still route manually!

It’s hard to believe that with technology advancing faster than ever before, that companies would be reluctant to invest in a system which would save money, increase operational efficiency, improve customer service, and even reduce stress on their employees. While TMS systems offer a broad range of functionality, route optimization and vehicle tracking can provide a rapid return on investment and significant savings for companies operating a fleet of vehicles.

It doesn’t take a lot of digging to uncover what other organizations are doing to gain profits and shave transportation expenses. Take a look at some of our real stories and see first-hand the time, resource and financial savings achieved. Ask any fleet manager that has experienced manual routing, vs. automated routing; no doubt they will tell you, they don’t know how they managed without it.

So, why are 63% of companies surveyed so unmotivated when it comes to TMS?

Maybe they haven’t realized how significant the benefits are, or maybe they haven’t found the right partner.  Some systems aren’t easy to use; others are not scaled to meet specific business needs. The solution for your organization has to take into account many aspects of your logistics challenges. Finding a partner that will consult with you, and evaluate your needs is essential to implementing a tool that will help your organization realize greater success.

Adoption rates for TMS systems are still growing, as published by Logistics Management Magazine. 2012 rates show an increase from 32% to 37% over 2011, and also reported that approximately 25% of survey respondents plan to buy/upgrade their current systems.

If you are already utilizing fleet management and transportation management solutions, this is good; but always seek to improve. Managing your system is an on-going process. Access reports and measure the effectiveness of your plan. Make it part of your process to utilize training resources, expertise and tools available to continuously evolve your fleet operation.

And please remember, the Roadnet team is here to talk about transportation management for your operation: info@roadnet.com.

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One Response to Transportation Management: What’s Holding You Back?

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