TMS Implementation Pitfalls To Avoid

While the awareness of digitalization and visibility has increased significantly, and there's abundant logistics software tailored for enterprises, logistics professionals still struggle. Why?

Gartner reports that up to 75% of enterprise implementation projects fail.

Digitizing your workforce might sound tempting in a time of cost-saving, productivity, and visibility. However, bringing sweeping changes to any existing process comes with its own set of challenges. Time and again, companies implementing a TMS system fail to plan accordingly, resulting in mistakes and struggles with their project. So let us share the common mistakes to avoid to help you steer clear of the pitfalls of TMS implementation.

Mistake #1: Not understanding your business needs

Many businesses turn to transport management software for a quick fix, hoping it can provide a solution to capacity constraints and rising shipping costs. But not all standalone or off-the-shelf solutions can meet the company’s long-term goals. The failure to consider the company’s existing supply chain processes and review its business needs often leads to a poor procurement process.

While your search for transportation management software may be spurred by an issue you wish to resolve initially, there are various other considerations to factor in your selection process. For example, what are the solutions you need? Do you only require freight management features, or will you need shipment tracking and data analytic functions too? And is there a need for platform migration to accommodate the new system?

The answer to these questions will affect the implementation process. So if you want the initiative to go smoothly, you must fully understand your internal process and align with the stakeholders before you procure your TMS system. Review your present workflow and procedures, conduct a tech audit, discuss your goals with the relevant stakeholders, and detail an implementation plan to determine the best solution for your company.

Mistake #2: Lack of corporate alignment and resources dedicated to the project

We have discussed how misunderstanding the business’s goals and a lack of planning can impact the procurement process. Too often, companies miss the point of a TMS system, seeing it solely as a solution to answer top management requests or solve a singular problem. But when done right, the software can transform the entire logistics ecosystem, improving customer service and driving capital growth.

This lack of foresight can cause organisations to underestimate the scope of the project. When they fail to recognise the impact and complexity, they often dedicate insufficient resources to the project. This results in a lack of attention, unattainable timelines, and corner-cutting, causing numerous problems to surface during the system implementation.

The problem may be attributed to a lack of corporate alignment. To prevent this issue from occurring, you and your stakeholders must be aligned in the goals and understanding of the project. A suitable candidate should be installed to lead and build a team and given what they need to ensure the success of the TMS implementation.

Mistake #3: Not having a proper testing and training plan

As the adage goes, “If you fail to plan, you plan to fail”.

An excellent TMS implementation plan must outline every step in detail, including the testing and training phase. As the deadline approaches, there is a tendency for companies to adopt the "just go with it" mentality and look to resolve the flaws later.

This results in insufficient end-to-end process testing, impacting the success of the TMS system. Outstanding bugs that are not resolved beforehand can hinder business continuity. The end result is that precious time and resources are wasted to resolve the issue before operations can resume.

Training is also often brushed over in a more cursory manner to ensure everything can go live promptly. But training must go beyond knowing what buttons to press. Ongoing training that drills into why the solution is crucial and how it benefits everyone is essential to the long-term success of your TMS project.

Providing your team leads with comprehensive training so that they can impart their knowledge to their team is an efficient way of ensuring everyone is brought up to speed with the changes. We also recommend drafting an in-depth guide explaining the work processes and the features of the transport management software to help workers come to grips with the new system.

Final thoughts

There is no denying the benefits of having a comprehensive transport management platform. However, poor implementation can often have the opposite effect. So if you want to ensure the success of your TMS project, you must have a clear understanding of your business needs, ensure proper alignment with the relevant stakeholders, dedicate sufficient resources to the project, and have proper testing and training plans in place.

As one of the leading transport management software providers in the industry, Cargobase is dedicated to helping businesses get the most out of their TMS systems. We work hand-in-hand with shippers to assess the objective, set KPI, and provide comprehensive training and customer success resources.

To date, Cargobase has helped enterprise manufacturers in automotive, semiconductor, aerospace, oil & gas to succeed in TMS implementation that is now used by users in 50 countries.

Want to explore how your team can #GetShipDone better, faster, and cheaper? Contact us now.