What Is the ROI for a Transportation Management System (TMS) in Trucking?

Whenever you invest in technology, like a Transportation Management System (TMS), for your freight company, it is an added expense that you need to better understand. This means taking a closer look at how your investment in innovative tools and technology will impact your bottom line and calculating how long it will take until you see a Return on Investment (ROI).

This is what many trucking and freight companies want to know when they are weighing the pros and cons of a TMS platform. They are asking questions like — what is the ROI for a Transportation Management System in trucking? TenTrucks may be able to provide the answers you need with this quick and in-depth overview.

How Long Until I See an ROI on a TMS?

Are you looking for ways to make your freight company more efficient? Are you looking for ways to reduce costs, improve your profitability, and drive long-term growth? A Transportation Management System (TMS) may prove to be the answer to all of these questions and more with an impressive Return on Investment.

Freight companies that invest in a high-quality Transportation Management System can expect to see an annual ROI of 5% to 15% based on industry data and a Gartner survey. Additional industry data indicates that trucking and freight companies who invest in TMS solutions should expect to see a return on their initial investment within 6 to 18 months — which can vary based on a variety of factors. A smaller freight company that implements many manual operations may see a quicker return on investment when a TMS is implemented.  

4 Factors that Impact ROI

There are several factors that can impact your return on investment when you implement a Transportation Management System — from the size of your company to your current operational efficiency. Here is a closer look at the key factors that will impact your ROI when you invest in a TMS platform:

• Size of Your Company: The size and complexity of your logistics operations will have a significant impact on your ROI metrics. Freight companies that are larger and more complex may not operate as efficiently, and when you implement a TMS, it has the potential to generate real change quickly and provide a faster return.
• Your Current Operational Efficiency: How efficient are your operations? Do you have a lot of room for improvement? Your current level of operational efficiency will impact your ROI. Freight companies that are less efficient will see a more significant return than more efficient companies — but a Transportation Management System has the ability to help you scale and grow your operations to achieve your financial goals.
• Your Implementation Strategy: Are you just implementing a few elements of your Transportation Management System? Or are you planning to utilize all aspects of your TMS? How effectively you implement your TMS and how well you use its innovative tools will have a major impact on your ROI.
• Your Level of Integration: A key benefit of cloud-based Transportation Management Systems, like TenTrucks TMS, is that they can be easily integrated with other platforms to provide you with a unified and comprehensive solution. The ability to integrate your TMS with Customer Relationship Management (CRM) and other systems will help increase the value of your investment. 

READ MORE: How To Choose a Cloud-Based TMS Provider 

Many trucking and freight companies want to know — what is the ROI for a Transportation Management System in trucking? We hope that this overview created by TenTrucks has provided the answer to your questions and illustrated why a high-quality TMS platform is a valuable asset for trucking and freight companies.
 
Contact TenTrucks today for more information on TenTrucks TMS and our 24/7 dispatching services!