Top 4 Benefits Of A Cloud-Based TMS System

We talk to hundreds of shippers every year. Some think that owning everything (on-premise) is better, but reality shows the opposite. Let us address the benefits of cloud-based TMS.

cloud-based software

There are many options in the market when it comes to logistics software. You are probably no stranger to transportation management systems (TMS). Supposed you've considered most of the features from procurement, freight rate management, and invoice auditing, to reporting and analytics; one critical factor you should not miss is whether you want to implement a cloud-based TMS or an on-premise TMS.

On-Premise vs Cloud-Based

There are two types of TMS systems available on the market – on-premise TMS and cloud-based TMS. The former is similar to Microsoft Word and Powerpoint, where you purchase the software and install it on your office computers or servers. Meanwhile, a cloud-based transport management system, as its name implies, utilises a cloud-based storage system and can be accessed by any device as long as it is connected to the internet.

We talk to hundreds of shippers every year. People often confuse the two. Some think that owning everything (on-premise) is better, but reality shows the opposite. Let us address the benefits of cloud-based TMS.

Benefit #1: Less costly to maintain and operate

At the end of the day, running a profitable business comes with increasing revenue or decreasing costs. Business owners and managers often seek solutions at the most cost-effective prices. Cloud-based technology offers just that. In fact, according to a study by BCG, enterprises can save between 15-40% on IT operating costs.

With an on-premise TMS system, you have to factor in the price of the software license and the cost of hiring additional IT staff to deploy and maintain the programme. Conversely, a cloud-based TMS system is typically subscription-based. It grants you immediate access to the software at a reasonable monthly or yearly fee, as long as your devices have an internet connection.

Moreover, you do not have to worry about resolving complications that crop up during use. Your TMS provider takes care of compatibility, integration, installation, and upgrades.

Benefit #2: Automatic data back-ups

By its nature, a cloud-based transport management system has no physical server. Instead, it is distributed across multiple virtual servers. Furthermore, the cloud-based software is designed to back up data regularly. So you do not have to worry about a server crash or power outage causing you to lose precious data.

Benefit #3: Greater flexibility and accessibility

When you utilise a cloud-based TMS system, your employees do not need to go through the hassle of installing hardware or software. All they require is an internet connection. This means they can access your TMS system from any location, including their homes, as long as Wi-Fi is available, which is convenient for troubleshooting urgent issues outside of working hours.

Benefit #4: Greater scalability

Cloud-based transport management systems are developed with an extensive range of operation sizes and types in mind. As a result, every business, from small and medium-sized enterprises to corporations, can adapt to demand fluctuations easily without investing in additional solutions.

As supply chain disruption and logistics challenges continue, it is vital for companies to utilise more robust TMS. Cloud-based transport management systems can help enterprises achieve this goal. In fact, the advantages of cloud-based TMS integration are vast. So get on board and transform your business today!

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