SaaS vs. Traditional TMS: Two Factors to Consider

Most SaaS TMS provide a pre-established and extensive network of carriers, suppliers and trading partners. As shippers look for new capacity in a carrier-limited market, greater access to carrier resources provides a competitive advantage in contracting additional capacity or optimizing relationships with existing partners. With a SaaS TMS, only one connection is necessary to interface with multiple logistic partners, carriers and vendors.

In addition, SaaS TMS enhancements are seamless and executed on a continuous basis. As new functionality becomes available, upgrades are automatically accessible to all users at once with very little, if any, effort required by the user. With a traditional TMS, upgrades are normally at the discretion of the user; therefore, their hosted TMS can become outdated and support may no longer be available if upgrades do not occur over a certain period of time. Also, when upgrades are executed, a much larger effort is required from the user compared to a seamless SaaS TMS upgrade.

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Keywords: transportation management, TMS, Hosted TMS, On-demand transportation management, logistics & supply chain, supply chain management IT