The transportation industry is always changing and shows no signs of slowing down.
Contributed by Rose Rocket
The days of a simple operating model and a straightforward industry are long gone.
The rise of e-commerce has encouraged customers to demand faster, more reliable, and transparent delivery services. New regulations around emissions, hours of service, and safety mean that transportation companies are under pressure to remain compliant yet competitive. Technological advancements like the Internet of Things and ELDs have created more data and systems for transportation companies to consider.
Compounding these challenges, the industry is still grappling with the after-effects of a global pandemic. With so many new regulations and unprecedented changes impacting the industry, there is more pressure than ever for companies to survive.
In 2023 alone, 88,000 carriers and 8,000 freight brokers closed their doors, signaling a significant departure from the industry’s growth period experienced throughout the pandemic.
This raises a critical question: How can transportation companies keep pace in an industry marked by constant change, tight margins, and unpredictable variables? As the dust settles, one thing becomes clear; success in transportation will be determined by a company’s ability to adapt to change.
Naturally, many factors contribute to a company’s adaptability. However, a critical element often overlooked is the right software.
While technology is just one piece of the puzzle, it’s a large one. The right software can be a game-changer, providing the flexibility and efficiency needed to stay ahead. It’s about more than just keeping up with recent demands; the right software partner gives you peace of mind and the knowledge that you can quickly change how you work without old processes weighing you down.
If adaptability is what you need, then TMS as we know it isn’t enough
Since the boom of transportation management system (TMS) software in the early 2000s, it’s been recognized as a critical tool, saving businesses time and money while optimizing operations.
In fact, TMS software has become an integral part of trucking, with 70% of companies reporting they use a TMS to run their business. However, as technology and the industry have evolved in recent decades, TMS software hasn’t kept up.
The reality is that many transportation professionals are still frustrated and unhappy with the software. In a survey with transportation VPs and directors conducted by JBF consulting, over 67% of respondents indicated they were unsatisfied with their TMS. Top frustrations included:
- Implementation challenges: Long implementation processes can take up to six months, causing operational disruptions. Poor user experience leads to low adoption, resulting in inconsistent processes. On-premise systems have high maintenance costs and slow updates.
- Inflexibility and lack of customization: Current freight broker and trucking systems often force businesses to adapt to the software’s processes, leading to inefficient workarounds. These systems fail to scale or adapt to new business needs without significant delays or costs.
- Manual processes and lack of integration: Many TMS solutions still rely on manual input, causing inefficiencies and errors. Poor integrations lead to disconnected data and processes, hindering operational streamlining.
Companies purchase a TMS hoping for productivity gains and reduced operational costs. But that isn’t the reality. TMS platforms are often inflexible, cumbersome, and simply unable to deliver on their promised benefits.
With rapid changes and increasing demands, companies must ensure their software isn’t just adequate but exceptional in meeting today’s challenges. Yet the TMS falls short of basic expectations. This begs the question: is the TMS working for you or against you? And where do we go from here?
Your next TMS isn’t a TMS at all
The issue with TMSes isn’t the technology itself, but rather how they are designed, purchased, and implemented.
In the ideal world, software should help you adapt to changing times, supporting your business as you’re forced to change processes. Trucking and brokerage software should ensure you have the flexibility to support any type of operation as your business grows.
Buying and using software doesn’t have to be painful. Buying a system for your company shouldn’t have a substantial price tag before you can even log in to it or see its value. Implementing the system shouldn’t take years, and customizing it to your company’s needs shouldn’t take hundreds of thousands of dollars in third-party development time.
Even in the face of change, there is a world where your business can get operational visibility, seamless collaboration with your partners and shippers, and time back for the things that matter.
The payoff is worth the switch
Achieving this vision doesn’t happen overnight. It requires overcoming the inertia of traditional systems and challenging the status quo. But in light of recent changes, it’s likely that your business will be forced to adapt at a rapid pace in the future anyway.
So, the question is — would you rather proactively choose a system that future-proofs your business, or deal with the consequences as a reaction? Picking the right partner can make all the difference. The alternative? Risk of being left behind, or worse.
Checklist: What to look for in your next provider
Your business doesn’t exist in a vacuum, and neither does your transportation software. As external factors across the supply chain, economy, and regulatory environment impact your operations, your system needs to keep up.
When you’re looking for a different transportation software, consider the checklist below to guide your decision. Future-proof your business by ensuring that your next transportation software delivers on each of the capabilities below. Plus, use the suggested questions to ensure you’re conducting a full audit of your next provider before making the switch.
1. Flexibility
Why is it important? Most TMS software and freight broker systems provide standard solutions that may not reflect your specific operations. Flexible software ensures the system reflects your processes now and in the future, leading to greater efficiency and improved operations.
Questions to ask: Can I add my own custom fields? Can I set specific workflows for different roles, like dispatchers versus accounting? Can I customize documents like rate confirmations and invoices?
2. Connectivity
Why is it important? Your system needs to serve as a central hub, connecting with all of your other technology, such as warehouse management systems, ELDs, load boards, and accounting tools. Choosing software with built-in integrations will give you a complete view of your business with just one platform.
Questions to ask: Do you integrate with my preferred providers? How do I set these integrations up?
3. Security
Why is it important? With fraud incidents on the rise, it’s more important than ever to ensure that your system protects you from cyber security threats.
Questions to ask: Are you SOC 2 Type II compliant? What measures do you have in place to protect me from cyber security threats?
4. Ease of implementation
Why is it important? Implementing new software can feel daunting. A smooth implementation process with human support and training ensures that you’ll get the resources you need for a painless transition.
Questions to ask: Is there a trial period? Is there an option to start with a phased roll-out? What resources do you have available for implementation and onboarding?
5. Shareability
Why is this important? Your system isn’t just for you — it’s also for the shippers, carriers, drivers, and partners you work with across the supply chain. A system with built-in sharing capabilities can instantly give everybody access to the same source of truth, saving your team and minimizing the chance of human error.
Questions to ask: How do I share order status with my shippers, carriers, partners, and drivers? Can I create custom views and portals for external users with just the information I want them to see?
The bottom line: Raising the bar for your software
The industry is evolving rapidly — and in trucking and logistics, every company has unique operations. While other consumer technologies have modernized to reflect a more user-friendly experience, it seems that transportation software has some catching up to do.
That’s why Rose Rocket introduced our Platform product — the ultimate solution for the trucking and logistics industry, addressing every shortcoming of traditional TMSes.
It’s time to expect more from freight broker and trucking software. For transportation professionals who deal with unforeseen challenges each day, choosing modern transportation software is something in your control. For too long, frustration has been the norm when you deserve to find a system that does everything you need it to do and more.
The keys to success are ensuring that your next transportation software is flexible and connected, with built-in capabilities to customize how you work as your business evolves.
Companies that embrace change and invest in customizable software like Rose Rocket are best positioned to adapt to change, making their software an asset instead of a constraint. Don’t let traditional TMS software hold your business back — take the first step toward transformation and discover how Rose Rocket can propel your business forward.
FAQ
TMS software, or transportation management system software, is a specialized tool designed to manage and optimize logistics and supply chain operations. It primarily focuses on planning, executing, and optimizing the movement of goods.
It’s used for various transportation-related tasks. These may include route planning, carrier selection, freight audit and payment, shipment tracking, and performance analytics in supply chain management.
No, a TMS isn’t an ERP system. Although it can be integrated into ERP systems, a TMS is more specialized, focusing specifically on transportation processes.
