The ROI of TMS Is Improving

By Steve Banker

ARC Report Abstract

Transportation management systems (TMS) are designed to help companies move freight from origin to destination efficiently, reliably, and cost effectively. ARC Advisory Group recently completed survey-based re-search on the return on investment (ROI) associated with TMS. Based on the survey results, it appears that the now-robust ROI has improved greatly compared to our last survey on this subject five years ago. However, the reasons for the improvement are not entirely clear.

Most Recent Survey Shows Improving ROI
ARC Advisory Group did a survey on the return on investment (ROI) companies receive from the solutions used to manage their transportation. ARC performed this survey in conjunction with DC Velocity and eft (formerly known as eyefortransport). Sixty-three respondents (53 percent of total respondents) said they use transportation software as their primary solution to control transportation processes. We defined transportation management systems (TMS) as software that includes capabilities to help companies optimize transportation processes through simulation, network design, load consolidation and mode selection, and/or multi-stop route optimization.

This latest survey indicated that users are now receiving markedly better ROI from their TMS solutions than indicated in a similar survey ARC completed in 2011.

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Keywords: Transportation Management System, TMS, ROI, Service, ARC Advisory Group.

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