Transportation Management Systems (TMS) Supplier Evaluation and Selection

A transportation management system (TMS) helps companies efficiently, reliably, and cost effectively move freight from origin to destination.

TMS encompasses solutions for moving freight in all modes. The TMS processes include freight transported inbound or outbound, domestically or internationally, and using transportation assets the company owns or are owned by an outside service provider. The freight managed by a TMS ranges in size from parcels to bulk commodities.

There are two main types of TMS solutions: planning and execution solutions, which is a TMS for freight moves involving a carrier; and fleet management, which is a TMS for freight moves involving transportation assets owned by the company. This solution is focused on TMS planning and execution functionality.

Scope of Criteria
The scope of the criteria covers all key aspects of the planning and execution end to end process including procurement, creation of a route guide, planning and optimization, electronic communication with carriers (the tendering and load acceptance sub process), document creation, visibility and exception management, freight audit, and performance management.

For international shipments it would also include advance shipment notification to governmental authorities. The guide allows those involved in a TMS selection process to make improved decisions more quickly.

Perhaps no other supply chain application offers so many ways to save money or drive value. But the main reason companies implement a TMS is to reduce freight spend. A TMS achieves these savings based on process enforcement, analytics, and optimization; with virtually no other supply chain application offering so many different forms of optimization.

Our research into the TMS market shows that this is one of the fastest growing of enterprise software markets; clearly many companies are going through the complex and time consuming TMS supplier selection process. Complexities are increased because there are fundamentally different paths, with different pros and cons, that companies can go down.

Further, a greater breadth and depth of functionality does not always lead to a better ROI. Finally, while product functionality plays a major role, suppliers have specific domain expertise, geographical presence, and complementary product suites. These must all be evaluated in a supplier selection process.

TMS Solution Features
ARC has been researching the transportation management system market for many years, including a detailed study of the ROI of TMS.  We understand the challenges that organizations must overcome. We know the features that a TMS solution needs to be fit for purpose, including:

• Technology and architecture, including the pros and cons of SaaS network solutions
• Functionality that is difficult to implement and can drive up licensing and implementation costs
• Integration with enterprise applications
• Supplier’s business viability
• Local and global capabilities
• Supplier’s long term vision
• Software upgrades and support
• Version release frequency
• Support model, training, and services

This ARC STAR Service will help you select the best available transportation management system to meet your needs now and in the future.

ARC STAR SERVICE FOR SUPPLIER EVALUATION AND SELECTION
ARC developed the STAR Service through years of experience in helping companies select technology solutions.

STAR guides you through project definition, team identification, criteria development, criteria prioritization, supplier short-listing, supplier polling, supplier results analysis, and supplier positioning.

STAR also provides you with the right selection criteria and the information you need to identify the market leading suppliers.

All too often, supplier selection is contentious, lacks key information, and is prone to delays. The ARC STAR Service leverages the Analytic Hierarchy Process (AHP) for criteria weighting and supplier rating, and enables your team to reach consensus without conflict.

The ARC STAR Service is thorough, structured, and fair, producing results based on facts and sound logic.