In today's fast-paced world, efficient delivery is no longer a bonus; it's an expectation.
Despite the volatile nature of supply chain distribution in recent years, buyers are still investing in transportation management systems (TMS) to find solutions focused on scalability and visibility.
G2 publishes seasonal reports for our Supply Chain & Logistics categories to assist software buyers with their freight and logistics management needs.
In this article, we will examine some G2 data and share some key takeaways from the recently published Spring 2024 Grid® Report for Transport Management Systems.
What does the report tell us?
When looking at the report, some of the industry leaders to watch are Descartes Aljex, GoComet, and MyCarrierTMS.
All distinguish themselves from the rest of the pack on our Grid® with impressive G2 scores—the G2 score of the top performer being nearly 30 points higher than that of the sixth-placed Leader.
When analyzing our TMS list, we see that our top three leaders are worth considering. They have an impressive number of reviews and market presence, along with very high satisfaction scores, which should come as no surprise since they’ve held onto their lead since the Fall.
However, some competitors in the market have been making massive strides. One is Cargobase, a current High Performer with a strong lead. Additionally, they have our fourth-highest satisfaction score overall and have held multiple positions in our Grid® Report rankings over the last few seasons.
TMS user adoption and ROI findings
As highlighted in the report, on average, TMS users do not see a return on investment (ROI) until 14 months after adoption.
As shown in the image below, on average, it takes nearly 3 months to go live, followed by another 14 months to see a positive ROI for buyers. This means the entire journey could take up to 17 months on average.
One of the report's most exciting insights is an average user adoption rate of 80%. This indicates that virtually every buyer sees the benefits of utilizing TMS products.
Whether seeking to enhance route efficiency, consolidate shipments, or choose the most economical carrier, users are supporting their supply chain with an array of advantages.
How to choose the right TMS
Before making a selection, there are some important questions to consider:
- What is driving the majority of TMS buyers to invest?
While the report indicates that many are experiencing benefits from the application, it's important to remain mindful of the gaps in your supply chain and what functionalities are essential for your success.
- Should you make a long-term commitment to ensure a positive ROI?
It's clear that 17 months may be a long time to consider when exploring TMS products; buyers can look for solutions that offer shorter payback periods.
- What additional features and integrations does the solution offer?
TMS products offer several integrations, so it’s important to consider what tools are already being utilized. With TMS's ability to integrate with other systems, such as ERP systems and warehouse management software, it is essential to enable workflow automation and seamless data exchange across your entire supply chain SaaS ecosystem.
Transportation management is the key to a healthy supply chain
Transportation management is often a fundamental part of avoiding unnecessary disruptions.
It is highly likely that your potential ROI may take some time, so it is crucial to make the right TMS choice for your needs. A TMS should be adaptable and scalable to the ever-changing dynamics of the market so that it grows alongside your business.
When exploring the solution for you, ask questions, focus on your pain points, and don’t be afraid to be transparent about the health of your current supply chain.
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Edited by Jigmee Bhutia
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