Is your current TMS holding you back?
When your logistics operations are growing chances are that you bump into some limitations of your tech stack. There are some clear indications that this is the case:
- Endless manual workarounds and limited automation
- Struggles to integrate with new systems or external partners
- Missed opportunities due to slow response and outdated tech
- Increases in maintenance costs and upgrades
- Frustrated employees juggling disconnected systems
Modernize or replace: What’s right for you?
Replacing your TMS entirely might seem like the simplest option but it’s also more disruptive and perhaps initially more expensive. Modernizing your existing systems through replatforming or rebuilding with Rappit allows you to keep what works, upgrade what doesn’t, and unnecessary complexity.
Standard vs custom TMS. Which is best?
| Standard TMS | Custom TMS |
| Predefined features | Designed around your workflows |
| Structured but less flexible | Highly adaptable to business |
| Faster deployment | Built to scale with your operations |
| Subscription-based, managed by the provider | Full ownership and control over modifications |
Why choose a custom Transportation Management System?
Consider your Logistics operations, if it’s not too complicated and a standard solution fits your needs, that’s great. But chances are your logistics operations aren’t as out-of-the-box as these standard transportation management solutions. Below are a couple of reasons why your operation probably requires a custom solution.
Custom TMS advantages
Tailored to your needs
Build features that align with your workflows.
Scalable
Adapt as your business grows and diversifies.
Cost-effective
Avoid paying for unnecessary features you’ll never use.
Future-ready
Designed to integrate with evolving technologies.
No vendor lock-in
Retain ownership and control of your system.
Curious how or where to start?
Talk to one of our experts to get more information or to see a demo and see how quickly and efficiently you can create a solution tailored to your needs.
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FAQ
What is a Transportation Management System (TMS)?
A Transportation Management System (TMS) is a software solution designed to optimize logistical operations. It automates repetitive tasks and reduces the likelihood of human errors. It provides tools and features to plan, execute, and track transportation.
What types of Transportation Management Systems are there?
There are two types of TMS: standard TMS, like Oracle and SAP, and custom TMS, which is built from the ground up.
Which TMS offers a greater competitive advantage — standard or custom?
Most standard TMS uses best practices and industry standards. Well-configured it can make your operation more efficient.
A custom TMS, made precisely to your requirements, boosts the efficiency of your operations.
Since everyone uses the same types of standard TMS, it will not provide a competitive advantage. In addition, standardization favors the largest customer base. As a result, companies with specific or innovative needs, miss out on functionality. With a standard TMS, companies cannot differentiate and use their systems as a competitive advantage.
A well-built custom TMS, on the other hand, meets all the company’s needs. It contains the latest technologies and is an excellent basis for adding data-driven innovation. This will enable comprehensive data analysis for smarter decision-making, responsiveness to market shifts, improved customer experiences, and optimized operations. This difference gives custom TMS a competitive advantage over standard TMS.
Which one is better scalable: custom or standard TMS?
A TMS must be able to adapt to changing business needs. Whether it’s scaling up operations, expanding to new geographical locations, or integrating new solutions, a TMS should be able to adjust to the circumstances effortlessly.
Standard TMS solutions support the adding and removing of modules to cater to specific business requirements. The configurations can be adjusted to align with evolving needs. Vendors also provide updates and enhancements to their systems to improve scalability.
A custom TMS is scalable. It tailors to a company’s specific needs. It can be made with scalability in mind from the outset.
So is standard TMS scaleable?
Standardization has disadvantages. Commonly used features are integrated into a standard TMS, while less commonly used features are excluded.
But, since no company is standard, every company lacks functionality. In many cases up to 40%, based on our experience. The more specialized a company is the more functionality it misses. This functionality cannot be easily added because the original software architecture isn’t built for it.
Can a standard TMS be customized?
A standard TMS offers many modules for various standard business processes. Data models, databases, reports, and dashboards are customizable. It is possible to integrate with external systems and applications.
A custom TMS is designed to meet the company’s specific requirements. It is completely customizable.
So both types of TMS can be customized. However, to add truly specialized and innovative features to a standard TMS, customizations need to be added alongside it.
How long does it take to implement a TMS?
Implementing a moderately complex TMS can take 3-6 months. A larger and more
complex implementation involving a complex migration from a legacy application can take upwards of 9-12 months.
What is the difference between a TMS and WMS?
A TMS focuses solely on transportation management, handling logistics outside the warehouse. Meanwhile, a WMS is designed for internal warehouse operations, overseeing inventory, order processing, and space optimization.
How much do standard and custom Transportation Management Systems cost?
Regarding costs and benefits, it’s crucial to assess your needs upfront. Discovering later that more functionality or innovation is required can lead to significant problems. Not only is it complex to adapt a standard TMS, but it’s also very costly.
In general, a standard TMS is more cost-effective initially. It suits typical businesses with few special requirements and a limited need for innovation.
The costs depend on the fees charged by the integrator, the duration of the implementation process, and the number of consultants engaged in the project. A consultant costs between €100 – €300 per hour. There are extra costs for upkeep and adding apps.
A custom TMS incurs higher initial costs, but because it’s tailor-made, it ultimately delivers more value. This return on investment increases as the company becomes more specialized and innovative.
So, if your company has few unique needs and limited demand for innovation, a standard TMS is a good option. However, customizing a standard TMS is very costly. The same goes for surpassing the number of licenses as the company expands.
If unique processes are needed, and there’s a significant demand for a competitive edge and innovation, then a custom TMS is a better choice.