Implementing digital TMS solutions: Myths VS. Facts

Technology is dominating logistics as a crucial driver for efficiency and growth. Several prevalent myths hinder digital adoption and might result in resistance to change across the management and employee verticals. Thus, it is essential to rectify these seven common myths before digital implementation. Myth 1: High implementation and maintenance costs- Manufacturers usually skip the ROI dynamics and do not understand the bigger picture behind the investment. Fact: Cost-efficient and multiple cost savings- Implementation and maintenance costs are low, given the ROI metrics. Businesses shall evaluate the long-term ROI and direct and indirect cost savings to ensure a profitable transformation. Myth 2: Not compatible with individual processes- Businesses often fear that the solutions might not comply with individual process requirements and objectives. Fact: Customizable as per the workflow- TMS solutions can be easily customized as per the business requirements, workflow and consumer needs. Myth 3: Exposed Data sharing- Manufacturers often assume that sharing data digitally is a threat to its security. A single-window platform might expose confidential data to all stakeholders. Fact: User rights control- In reality, TMS solutions allow organizations to customize the user rights granted to the stakeholders. This prevents unauthorized access to critical information. Myth 4: Complex processes- Digital transformation in logistics is often seen as a catalyst for complexities. Stakeholders might feel that a digital model requires a special skill set and expertise. Fact: Easy-to-use solutions- Digital logistics solutions enable a simple, user-friendly interface with absolute visibility. All stakeholders across the logistics network can use it without any prior skills. Myth 5: High recurring costs- Manufacturers have second thoughts about digital transformation in logistics as they fear the high recurring costs. This common misconception results in resistance to change. Fact: Pay-as-use feature- Efficient TMS solutions come with a pay-as-use feature. The recurring costs are flexible as per the requirements. Myth 6: High Lock-in- Manufacturers have second thoughts about digital adoption as they fear that the lock-in periods are high. They might incur monetary losses if they decide to discontinue the TMS. Fact: No lock-in period- Efficient TMS solutions usually have zero lock-in periods, allowing enterprises to discontinue without cancellation charges. Myth 7: The entire module must be implemented- Organizations fear that the end-to-end digital module needs to be implemented. Enterprises with specific process requirements might see the purchase as unnecessary. Fact: Individual modules can be purchased- An advanced digital TMS can be implemented individually as per the requirements. Organizations don’t need to digitize the entire logistics workflow. Read less