8 Reasons to Use a Cloud-Based TMS
Transportation management systems (TMS) were once a luxury technology solution reserved for Tier 1 ($100 million +) shippers and large third-party logistics (3PL) providers and transportation brokers. Hosting a TMS on-site or renting space at a server farm also meant making significant long-term commitments and investments in development and infrastructure.
As the wide availability of cloud-based solutions virtually eliminates up-front costs, many small- and medium-sized shippers and 3PLs have begun realizing the benefits that a TMS can provide. The streamlined functionality offered by cloud-based TMS has put these smaller operations on much more competitive footing with their larger counterparts.
Cloud-Based TMS Benefits
There are a range of benefits that Software-as-a-Service (SaaS) TMS solutions provide that on-premises software solutions can’t compete with. Some of these benefits include:
- Cost. Cloud-based TMS solutions have little in terms of upfront cost. While big in-house Tier 1 solutions typically involve a comparable Tier 1 investment, cloud-based models usually operate on a flat monthly or yearly subscription fee that gives users full access to TMS functionality without costly hosting or development expenditures.
- Infrastructure. Using a cloud-based transportation management system requires no infrastructure investment beyond employee computers and internet access. By investing in cloud-based solutions, organizations no longer need to waste space and money on internal infrastructure, or pay high fees to a data center to rent server space.
- Security. Logistics software providers dedicate significant resources to ensuring that customer data is protected from cybersecurity risks, enabling shippers and 3PLs to focus on moving cargo rather than putting up firewalls. In addition, cloud-based software is by its nature hosted across multiple servers and locations and backed up at regular intervals. This redundancy means that a server crash or power outage won’t put your TMS data at risk of being lost.
- Scalability. A variety of cloud-based TMS solutions are designed to function with a wide range of operation types and sizes. This means that small- and medium-sized shippers can adapt to demand fluctuations or operational growth without investments in additional software solutions.
- User-friendly. Developers of cloud-based transportation management systems expect the solution to be used by people from a wide scale of transportation experience and technology skill levels. This typically means that cloud-based solutions will be easily trainable and easy to use.
- Functionality. A variety of web-based TMS solutions have hit the market that have comparable functionality to in-house Tier 1 solutions. This puts small shippers and logistics providers on near-equal footing with much larger competitors in terms of shipment tracking, finding capacity, real-time data, visibility, and more.
- Cutting-edge. Perhaps one of the biggest advantages to cloud-based software solutions is their ability to push innovation. There is no need to purchase new versions or plan extended downtime to install updates. As a cloud-based TMS subscriber, users have access to any updates or increases in functionality as they happen in real-time.
- Implementation. With cloud-based TMS, lengthy deployments are a thing of the past. Since the solution is already set up and running offsite, new users can hit the ground running and gain access to all the benefits the TMS has to offer within weeks instead of months.
The team behind 360data brings more than 50 combined years of experience in logistics, transportation, and business software to the table, and our commitment to customer service is second to none. Our 360data TMS provides shippers and logistics stakeholders of all sizes with Tier 1 functionality without the Tier 1 cost.
360data was named a 2018 Top 100 Logistics IT Provider by Inbound Logistics and a 2017 FL100+ technology provider by Food Logistics. We are also a contributing member of the Blockchain in Transport Alliance. To learn more about our cloud-based transportation management system or other solutions, please contact us.