A Guide to Transport Management System Costs: Save Time and Money

Adopting a Transportation Management System (TMS) is necessary to remain competitive and for successful freight logistics management.

This guide will explore what drives TMS costs, the types available, and how choosing the right TMS can significantly save time, resources, and operational costs.

Key Takeaways:

• Cost breakdown: Learn the typical costs of a TMS, including initial and ongoing expenses.

• Choosing the right type: Understand the advantages of cloud-based versus on-premise systems.

• Maximizing ROI: Explore how Planimatik's TMS features optimize time and costs while delivering measurable savings.

What Is Transport Management System Software?

A TMS is a software platform designed to manage logistics and transportation aspects of supply chain operations. TMS software helps logistics managers coordinate shipments, optimize routes, track freight, and monitor operational costs.

At its core, a TMS like Planimatik offers freight management optimization, covering every stage of transportation management, from planning and execution to tracking and cost analysis.

By automating routine tasks and centralizing data, TMS platforms provide logistics managers with a powerful toolset for making faster, more informed decisions and improving overall efficiency.

How Much Does a Transport Management System Cost?

Effective cost management is a top priority for logistics managers, especially in today’s competitive market. The ability to analyze multiple bids and carrier options ensures you can choose the most cost-effective solutions.

TMS Costs (Disclaimer, these are only estimates)

Initial costs range from $36,000 to $150,000 in the first year. Long-term costs can escalate to $300,000 to $1 million over five years.

Planimatik offers competitive pricing compared to these standard estimates. Whichever your freight needs are, we have the right plan for you. Our plans include basic, basic plus, premium, and enterprise plans. Learn more about Planimatik’s plans and pricing.

Factors Influencing TMS Costs:

• Type of TMS (Cloud vs. On-Premise): Cloud-based systems often involve subscription fees with lower initial costs, while on-premise systems may have higher upfront expenses but can offer long-term savings.

• Number of users and carriers: More users and carrier integrations typically increase the system's complexity and cost.

• Customization and additional features: Tailored features like real-time analytics, advanced integrations, or automated planning modules can increase the overall cost but offer unique efficiency and cost management advantages.

Types of Transport Management System

Understanding the different types of TMS and associated costs is essential when selecting the right solution. Below, we break down the two primary kinds of TMS solutions—cloud-based and on-premise—and highlight their unique cost structures and benefits.

Cloud-based TMS

Cloud-based TMS solutions reside on external servers, and businesses of any size can access them through the Internet, making them flexible and scalable.

Since the provider hosts the infrastructure, there are minimal upfront expenses beyond the setup and subscription fees.

Still, while cloud systems offer easy integration with other digital tools, custom integrations with existing ERP or CRM systems may incur additional costs.

On-premise Solutions

On-premise systems generally require a much more significant upfront investment. Companies may invest in additional hardware or server upgrades to support on-premise TMS software.

Additionally, internal IT support and periodic upgrades add to the long-term cost of ownership, potentially increasing costs by 25-30% over time.

Evaluating the Value of Your TMS Investment

Investing in a TMS provides logistics managers with streamlined processes, time savings, and reduced operational costs, making it a wise long-term choice.

A TMS significantly cuts down manual effort and error by automating tasks like route planning, shipment tracking, and bid management, leading to efficient, cost-effective logistics.

How Does Planimatik’s TMS Facilitate Cost and Time Savings?

Planimatik provides logistics managers with up-to-date techniques, tools, and strategies to automate their work, making it smoother and more cost-effective. Key features include:

Stats (Analytics)

Gain valuable insights into your freight operations with Planimatik’s Stats Feature, our new feature designed to provide a comprehensive overview of your logistics performance. You'll have access to key metrics that enable you to make informed decisions and optimize your operations for success.

• Track average costs: Track the costs of loads you've moved over specific time periods. Whether you're analyzing monthly expenses or quarterly budgets, Stats empowers you to stay on top of your financial performance.

• Filter by dates: Dive deeper into your data by filtering it based on specific dates. Whether examining recent activity or historical trends, Stats allow you to customize your view and focus on the periods that matter most to your business.

• Monitor pick-ups and deliveries: Track the number of pick-ups and deliveries across different states to understand your operational efficiency. With this insight, you can identify high-traffic areas, optimize your routes, and streamline your processes for maximum productivity.

• Trailer-type view: The trailer-type pie chart provides insights into trailer utilization, helping you optimize resource allocation and operations for greater efficiency.

By leveraging the insights from Stats, you can strengthen relationships with your providers, identify top-performing partners, negotiate better rates, and make data-driven decisions that drive success. With Stats, you're equipped with the tools to take your logistics operations to the next level.

Automated Planning

Simplify your logistics planning with Planimatik's groundbreaking Automated Planning feature within the RFP (Request for Proposal) module. This innovative tool optimizes the planning of recurring lanes, eliminating the need for manual intervention week after week.

You can set predefined criteria such as pick-up or delivery times, specific lanes, and other essential parameters. Once configured, the system seamlessly applies these criteria to your planning process, ensuring consistency and accuracy without the burden of repetitive manual tasks.

Bid farewell to the time-consuming nature of manual planning for recurrent lanes. Automated Planning saves you valuable time and enhances precision and reliability in your logistics operations.

Embrace efficiency and strategic planning with Planimatik's RFP Automated Planning for a more innovative, streamlined logistics experience.

Transport Management Savings and Efficiency with Planimatik

A highly specialized TMS provider like Planimatik can tailor its solutions to your needs, from processing RFPs to optimizing lane management and integrating with carriers.

• Learn how optimized routing and scheduling facilitated by Planimatik resulted in a remarkable 20% logistics cost reduction and a 30% decrease in average delivery time for ITS Logistics.

• Discover how we reduced logistics planning time by 74% for Texas Tissue, a company in the converting paper industry.

• Find out how this company in Industrial Plastics Recycling (IPR) achieved 30% time savings with us.

Try Planimatik’s Transportation Management System. Get your free demo today!