Logistyx Quadrant: Choosing a TMS for Parcel Shipping

TMS vs TMS for Parcel

According to Gartner’s Model for Holistic Multimodal Transportation Management Systems: Core Capabilities, “The integration of carrier networks, real-time visibility solutions and digital brokers continues to make TMS solutions centerpieces or hubs for executing transportation operations.”

But before a company embarks on a TMS implementation to optimize shipping and gain a competitive advantage, it’s important to first analyze shipping volumes by modality and then consider whether a traditional TMS, a TMS for Parcel, or both, provide the required capabilities.

For example, if 20% of a shipper’s volume is FTL, and 60% is parcel, then with both systems in place, the business optimizes 80% of shipments. Of course, some shippers only want to invest in technology that addresses the largest percentage of their shipments, creating instances where a business uses only one or the other.

In the same study, Gartner highlights a typical scenario for businesses looking to choose between the two: “Notable differences remain in the depth, breadth and scope of various transportation management system offerings, with the sophistication of planning and optimization capabilities often seen as key differentiators,” and “Few, if any, TMS vendors have solutions that can successfully and cost-effectively support all levels of transportation complexity.”