Minimising one-time costs and maximising long-term value: How to optimise your shipper TMS implementation

In any software selection process, costs are a key consideration. In the case of a shipper Transport Management System (TMS), there are two sets of costs: recurring costs, which typically relate to the number of shipments flowing through the system; and one-off implementation costs. While recurring costs are more likely to correlate to volume, value and return-on-investment (ROI), it’s important for any shipper to understand, evaluate and minimise their one-time costs, while optimising their software for long-term value.

Elmer Spruijt, VP, Global Sales, Descartes, explains what shippers need to know about TMS implementation costs.

Investigate your needs

Any shipper looking to acquire a transport management system (TMS) will be looking at how the various solutions on the market can optimise their operations. However, with the cost of a TMS anything from 30,000 EUR to 900,000 EUR (£25,000 and £750,000), it is key to have a clear understanding of the value and benefits you need your new TMS to deliver – and look at the costs in relation to the value created. Based on capabilities, related costs, and expected value you can make the right choice for your business, streamlining implementation and set up, and ensuring longevity of the system.

The main influencers of TMS implementation costs to consider, include:

1. Connectivity with carriers/forwarders 

Automation is the key driver of operational benefits. Particularly for high-volume shippers an efficient and effective operation is essential. However, automation not only requires the setup of con…