Which TMS is Right for You? Planning Ahead

By George Moser and Peter Ward -- Supply Chain Management Review, 4/1/2008

Previous page: A closer look at the private SaaS model

What's described here is an approach to acquiring a TMS that blends the functionality, scalability and global capabilities of a Best-of-Breed Perpetual License model with the low initial cost of the Multi-Tenant SaaS. Transportation Process Outsourcing with Private Subscription SaaS minimizes the impact on the client IT staff and can allow shippers access to hard-to-find skills in transportation optimization and planning, in addition to the other tools provided for a TMS for tendering, visibility and event management. Shippers looking to this model need to understand, though, that the total cost of ownership of this approach is not likely to be lower than the Multi-Tenant SaaS model or the Perpetual License model.

However, it should speed up the time-to-benefit and help clients grow more gradually in their use of the system. This approach also reserves client ownership of the software license, data, and carrier contract rates. With such ownership, the shipper can minimize the impact of a contract end. Indeed, the expectation is that, as they grow their capabilities in using the TMS, many clients will take on more responsibility. That end will likely prove most beneficial to lowering transportation costs and improving transportation performance across the global network.

Author Information
George Moser is a supply chain solutions manager with Hitachi Consulting. Peter Ward is senior manager of supply chain solutions for Hitachi Consulting.

In this article, Which Transportation Management System is Right For You?

• Introduction
• Using supply chain software to meet today's shipping challenges
• The private SaaS model benefits
• A closer look at the partial outsourcing/private SaaS model
• Planning ahead

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