Share this
Small Business Transportation Management: Do You Need a TMS?
For small business owners, every expense is much more impactful than it would be, for say, an enterprise. This is because operations are tighter, as is their room for error.
For most small businesses, TMS software is too beneficial to be without. In this post, we’re going to explore how small businesses can evaluate the benefits of a TMS, from determining if they need one to narrowing down on a transportation management system that balances affordability with must-have functionalities. By the end of this post, you should be equipped to make an informed decision on whether to purchase a TMS.
3 Signs Your Small Business Needs TMS Software
Below are 3 key signs that TMS software could benefit your business:
- You want to improve your business’s flexibility when it comes to being able to pivot to alternative transportation modes or carriers with competitive rates during market fluctuations.
- Quick and clear communication has become a pain point (or worse, a bottleneck) in your supply chain management.
- Human error is an impediment to ensuring data accuracy and reliable information for both short-term and long-term decision-making.
You’ll know when to implement TMS once you experience errors as a result of manual methods. When you feel like manually comparing freight rates, allocating resources for loading and unloading of shipments, and a lack of real-time information are all handicapping your supply chain management, it’s time to consider TMS software for your business.
Another factor you’ll want to consider is your current TMS readiness. TMS readiness is the process of preparing your business for implementing a transportation management system into your operations. This includes the transferring of data, integration of your carrier network, and teaching employees to operate your TMS. Integrating a TMS is a process you want to plan for, not just jump into.
Affordable TMS Options for SMBs
So, let’s say you’re considering how the automation features included in a transportation management system (such as real-time carrier bids and optimization insights) can handle your supply chain logistics. The next logical step is narrowing in on affordable TMS options that won’t break a small business budget.
Entry-Level Solutions and Pricing
There’s no reason to look at large-scale transportation management systems that are designed for enterprise-level businesses. Instead, focus on entry-level solutions that address small business transportation management needs.
Also, consider carefully how pricing plans work. There are three main TMS pricing plans you’ll encounter: subscription models, per-transaction models, and user-based licensing models. Per-transaction and subscription models are often the more affordable options for small businesses with limited needs.
There are also free TMS options or free versions of paid systems for SMBs, which can be a great way to get started. ShipperGuide offers a free version as an entry point for businesses exploring TMS capabilities without upfront costs.
Some Transportation Management Systems will specifically advertise that they offer small business TMS pricing. These pricing plans tend to have limited features, but they make up the difference by offering generous pricing discounts for small teams.
Quick Wins from TMS
Some business owners see implementing a TMS as a money and time sink, especially due to the potential learning curve. However, while there is an adjustment period associated with acclimating to new technology, this doesn’t mean there aren’t some immediate benefits associated with adopting a TMS prior to mastering it.
Immediate Benefits Small Businesses Can Expect
Some TMS quick wins include:
- Immediate availability of real-time data for all operations. This means less human error and more confidence in information received to empower your decision-making.
- Tracking of shipping data. Monitor and manage transportation modes and lanes and get increased transparency of freight-in-transit.
- Built-in communication. Send messages to your carrier network or employees through a centralized app rather than using emails or text.
Consider TMS as a small business logistics software. The transparency and data gained from its immediate implementation position a business owner to make more informed decisions. This kicks in even before you teach your team and carriers to take full advantage of the many functions typically included in a TMS.
Frequently Asked Questions About a TMS for Small Businesses
Though there are clear indicators of when a TMS for small business should be looked into, it makes sense for business owners to be apprehensive. That said, it’s important to consider the direct and indirect benefits of bringing automation into your supply chain logistics management. Below are a few FAQs that should help address any concerns.
What's the Best TMS for Small Businesses?
The Best TMS for small businesses will depend on your budget and areas of operation that can benefit from automation. That said, you can’t go wrong with choosing a tool that has scaling capabilities, built-in communication, and visibility for your lanes. That’s the type of TMS that you can continue to use as your business expands.
Do Small Businesses Need a TMS?
Small businesses need a TMS if they’re looking to improve their operations beyond manual capabilities. Transportation Management Systems boost a company’s scalability and transparency through real-time data tracking, communication features, and in-depth management of freight, shipments, and your carrier network. Without a TMS, it’s a lot more difficult for a small business to manage and grow in these areas.
Empower Your Small Business with ShipperGuide TMS
If you’re looking for a TMS that will streamline your small business operations and scale with you, ShipperGuide TMS fits the bill. Features like rate benchmarking make it easier for small business owners to ensure they're getting the best deals.
Meanwhile, carrier integration and shipment tracking make it easier to handle tendering, monitoring, and invoicing. With so many features at your fingertips, it's easy to see how this software is worth investing in for small business owners. Request a demo of ShipperGuide today!