TMS or managed transportation services? Why not both?

Tom Sellin

By Tom Sellin Director of Business Development at King Solutions

TMS or MTSThere has been a longstanding debate in the supply chain industry over whether it is better for certain companies to implement a transportation management system (TMS) or allow a third-party logistics provider (3PL) to handle their logistics and shipping operations.

The consistent back and forth between proponents of each of the two styles of freight management is enough to make any supply chain manager’s eyes glaze over. Even market researchers have taken note of the debate and eventually decided to conduct an ROI-based study comparing TMS and managed transportation services (MTS).

The results didn’t settle the debate either.

What the ARC Advisory Group study found was that TMS solutions save companies money by lowering their freight spend with lower cost mode selections, better routing and better procurement negotiations.

The study also showed that MTS are far superior when it comes to service and process improvements, which can have a positive effect on a company’s bottom line, as well.

The unsolvable riddle that doesn’t need to be solved
Through all the pros of each methodology, no clear winner emerges in the end. Does it really come down to a company choosing which solution works best for them? Should a supply chain manager choose to implement a TMS, or find a 3PL who can provide complete supply chain MTS Services?

The costs of implementing a TMS is extensive and typically underestimated. The time and resources needed to implementing and operate TMS is not workable for many companies.

Can a company achieve the benefits of a TMS and work with a MTS Provider? Why can’t a company do both?

It’s like having your cake and shipping it, too
The supply chain industry has naturally transitioned from brokerage to managed transportation systems over the years. When brokers ruled the industry, they would assume control over a company’s shipping operations and find them carriers who could haul their freight.

The best part about utilizing the MTS of a 3PL is that you, the company maintain control over your shipping operations. At King Solutions, we partner with companies, carriers and may other entities to ensure the supply chain flows more smoothly.

We don’t want to assume control over your operations; we want to partner with you to make them better.

When you combine the service-oriented nature of MTS with the cost-saving simplicity of a TMS, you get the best all-around cost and service within your supply chain.

And no one knows how to get the most out of a transportation management system than a quality 3PL provider.

From TMS to MTS
Using a combination of TMS and MTS, you can still choose to plan routes, consolidate truckloads and gather vital metrics to help improve your operations, all the while working with a company who can find you the most reliable and cost-efficient carriers across the country. It’s the perfect combination of efficiency, speed, simplicity and cost savings that can help any company grow over time.

Whether you are looking for one service or both, give the experts at King Solutions a call today. There’s no better way to manage your supply chain.