Reasons Cloud-based TMS Are Better Than Traditional Systems
The fact that transportation management systems (TMS) are crucial for businesses involved in delivering goods and inventory management is apparent as it is in the current pace of the economy.
Without proper transport management systems and logistics software integrating your warehousing data, invoices and billing et cetera, your business is already lagging behind with the lack of efficiency in inventory and delivery processing.
However, the current focus is switching towards a cloud or web-based TMS rather than its traditional counterpart as we move forward in the digitalized world. Here’s why a cloud-based TMS is now superior to traditional systems.
Businesses Enjoy a Lower Cost of Ownership
Let’s take a look at traditional TMS. Subscribing to a traditional TMS would likely require you to purchase a minimum number of user subscriptions first regardless of your workforce size or whether you need advanced features or not.
On the contrary, cloud-based TMS is cheaper from its initial installation cost to its maintenance and updating costs - if any. If your business has just started out trying these cloud-based solutions, you may be able to subscribe for a free trial session first.
Here’s where businesses can try several solutions and weigh each providers’ pros and cons as well.
Businesses can often find a more suitable subscription option for themselves after the trial period, providing business owners with a chance for a better-informed decision on which provider’s services work best.
Cloud-based TMS Is Usable for Any Business Size
Most traditional TMS are tailored towards large businesses, providing various features that small businesses will have trouble utilizing to the fullest.
The availability of these advanced features would then lead back to its high cost, proving itself to be less cost-efficient for business owners when compared to cloud TMS solutions.
These advanced features could pressure the business to hire a bigger workforce just so that they can utilize their TMS to the fullest - definitely not the intended effect of employing this system!
With that being said, cloud-based TMS customization also allows for better subscription size management.
Since online TMS solutions have packages and pricing based on the number of users, it can be adjusted to be a lot more affordable and relevant for businesses, small or big.
Cloud-based TMS Has Better Connectivity
As the name suggests, cloud-based TMS is connected online, employing cloud computing solutions to link groups of supply chain trading partners on a single platform. With every vendor, carriers, and suppliers linked together on a cloud-based TMS, there will be no issue in maintaining a smooth collaboration.
Businesses can consider the cloud-based TMS as a central marketplace that enables suppliers worldwide to connect with new shippers, more carriers and perhaps even new retail or trading partners.
This entire web of connection would can then serve as a platform to find new business partners and potential supply chain stakeholders for your company.
No Server Storage Space? No Problem.
The primary benefit of employing a cloud-based TMS system is that it fully utilizes a remote operating system.
This means that you are using the services hosted on someone else’s servers, located in your service provider’s storage rooms - and not yours.
Storage rooms for servers are tricky to build, if not costly and difficult to maintain. These storage rooms also take up a lot of space that you can use for other warehousing or storage purposes!
The same applies to software storage space within your computer. Cloud TMS systems do not even require you to download updates or install any software for it to work!
All you have to do is to log on with any internet browser that you are using, and voila! Your data will all be there.
You Won’t Need to Worry about Data Backups
You might remember more than just a few times in your life when the electrical power supply to your computer was suddenly cut off, thus requiring you to rework several lost hours of work.
This could happen in traditional TMS and any devices that it might utilize, but not in cloud TMS.
Cloud-based TMS solutions will update your stored data as you work so that any power outages or sudden device crashes will not cause you much of an issue.
Indeed, strong connectivity through multiple data centers is a strength of cloud systems, enabling a smooth operation to continue even as adverse events occur.
Even in wide-scale power outages or similar events, your data backups will still remain stored! Rest assured knowing that your data will be updated and backed up automatically when you use this new TMS system and know that you can always restore the old data where necessary as well!
Cloud Computing Has Strong Cybersecurity
When you run a shipping or delivery business, you hold important information such as your clients’ contact number, their addressesand even your stakeholders’ personal information.
This information can be used by individuals with malicious intent to defame or discredit your business if you do not have good cybersecurity measures in place!
Penetration tests are frequently done on cloud systems to ensure that its users’ information stays protected against any hacker attempts.
As such, you can expect your data to stay encrypted and protected from any ill-meaning prying eyes!
The same applies to cloud-based TMS solutions - measures will first need to be taken to ensure that user privacy and identity stays protected before the service can be launched or marketed worldwide.
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