3PL Technology: Transportation Management Systems in the Cloud
Scott Hothem • December 23, 2014
We are a mobile society.
With the power of smartphones, the convenience of wifi and the endless reach of the internet, we are constantly connected. The ability to make purchasing decisions without being tethered has forced supply chains to adapt in order to respond to these new and changing demands. Cloud technology has leveled the level playing field for fulfillment centers. Integrating transportation management systems (TMS) with the cloud is a growing development. In fact, according to Gartner, 8% of companies already have their TMS in the cloud, while 51% are likely to move in that direction. Here are three reasons why moving away from on-premises software delivery models can be a key differentiator for your fulfillment operations.
- Scalability: When software is deployed across virtualized servers your TMS runs more smoothly, communicating relevant, accurate, timely data as demand increases and decreases. Decisions can be made from anywhere, creating the most effective and efficient fulfillment solution.
- Cost Savings: Historically, to run your own TMS required dedicated internal servers. This can be very costly. By switching to the cloud, you can change your cost structure to be based only on usage. The data storage, servers and other platform elements are essentially leased, you only pay for what you use. The economies of scale and expansion of existing resources afforded by the cloud can provide a wider range of technology while lowering IT expenses.
- Fast and Simple Implementation: One of the most attractive elements of transitioning your TMS to the cloud is that the timeframe, cost and resource allocation is relatively low. Compared to a traditional approach, the cloud will save from investing heavily in equipment that will be out of date relatively swiftly. Cloud-based solutions also require less customization allowing you to get on-line even quicker.
As more and more manufacturers and shippers look to create more options for consumers, supply chains will continue to be more complex. Embracing technology to meet growing consumer demands is essential. At Barrett Distribution Centers, with a focus on technology, we create and implement customized supply chain and fulfillment solutions.
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