Velocity of a TMS
While some of the benefits mentioned above may be quickly reflected in your business, like freight cost reduction, it may take a while longer to see improvements in customer satisfaction or the order-to-cash flow. Every company operates differently and has different metrics, so there is no ‘magic’ formula when it comes to calculating the ROI.
The decision to implement a TMS also carries an initial investment that should not be overlooked. However, most customers witness an excellent ROI after implementing a TMS, whether through cost reduction or other benefits such as visibility. ARC Advisory Group indicates in a recent study that, for many, about 10% of the savings are absorbed by the TMS implementation and maintenance.
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