It's no secret that transportation costs have become an important competitive factor in almost every industry. For this reason, more and more companies are taking advantage of tools such as Transport Management Systems (TMS) to help manage their physical flows easily while also reducing financial losses from delays or other unforeseen circumstances like road accidents.
The benefits continue beyond just saving money. TMS provides insight into what goods should go where so you can better plan your inventory stocking rates, which ultimately increases efficiency across all departments.
Gartner's Magic Quadrant for Transportation Management Systems states that the latest Gartner forecast on TMS worldwide estimates that the market is expected to grow from $1.32 billion to $2.11 billion (from 2019 through 2024). It further states that based on freight spend, the following rates of TMS adoption apply to the following companies.
The ArchLynk TM ROI Calculator is a maturity tool that enables you to calculate your Return on Investment on implementing a Transportation Management System. Use our TMS ROI Calculator to find out how much you can save with SAP TM by entering information related to your current transportation costs and calculating your potential ROI. The TM ROI Calculator makes some assumptions based on your business' revenue, cost assumptions, and industry benchmarks to simplify and speed up data entry.
Transportation Management Systems (TMS) are essential to companies of all sizes across industries. They deliver a range of benefits including:
Use our TMS ROI Calculator to find out how much you can save with SAP TM. Please enter information on your current transportation costs to calculate your potential ROI.
Route Planning & Optimization ($USD)
Including technology and staff, how much does your organization spend on routing and consolidation of inbound and outbound transportation?
Execution & Dispatch ($USD)
Including technology and staff, how much does your organization spend on carrier communication including booking services, tracking shipment status and milestones, and exchanging shipment documents?
Freight Rates & Settlement ($USD)
Including technology and staff, how much does your organization spend on estimating freight cost per load, matching carrier invoices, approving disputes, and reconciling transportation costs to orders?
Procurement & Analytics ($USD)
Including technology and staff, how much does your organization spend on procuring freight capacity, transportation reporting, and dashboards and analytics?
Annual % Change in Transportation Spend
Enter the amount you expect your transportation costs to increase year over year.
Transportation Return Opportunity
SAP Transportation Management can revolutionize your operations. We estimate a potential savings rate based on how sophisticated your logistics processes are today and our experience working with shippers and logistics providers in all industries and at various stages of the digital transformation journey. If you believe your savings rate can be higher or lower, please adjust your inputs accordingly.
*Please select the sophistication level corresponding to the current maturity level of your organization in this area. For example, if you use an intelligent optimizer to coordinate your freight movements and see little room for improvement, select 'High' for sophistication. If your logistics operators are manually routing loads and have missed opportunities to consolidate, select 'Low' for sophistication.
Current Transportation Capabilities
SAP Transportation Management handles all inbound, outbound, and intra-company logistics across all modes. Please select the current scenarios you manage. If you only manage intra-company logistics, please select outbound traffic direction.
Download our Buyer's Guide for SAP Transportation Management to learn more about how you can leverage SAP TM to strengthen your ROI.
Potential Solution Cost
You may be a fit for one of our Instant TM scenarios based on your business size and transportation scenarios. These fixed scope, price, and duration projects are based on industry best practices and are great options for many businesses looking for accelerated time-to-value. If your selections are not fit for Instant TM, please contact us here, and we will help you estimate an implementation cost and timeframe. ArchLynk is not a reseller of software; please estimate your annual license costs.
Whether your company is tackling manual contract negotiations, needs accurate shipment visibility, or needs help to reduce freight spend, a TMS is a comprehensive solution.
Digital Transformation requires an expert to support your efforts to implement a complete digital supply chain. As global leaders of SAP Digital Supply Chain implementations (SAP TM, GTS, IBP, and BNL (Business Networks for Logistics)), we have enabled businesses worldwide to derive exceptional customer experience through streamlined business processes, accelerating their digitization efforts.
While LE-TRA functionality is still available within S/4HANA, SAP has announced the end of its compatibility scope in 2030. After this date, customers still running this solution may face challenges and fines.
Download your copy of the Quick-Start Guide – SAP LE-TRA to S/4HANA TM Migration and start your SAP S/4HANA TM Transformation Journey.
ArchLynk can help your company assess its digital supply chain maturity compared to others in the industry. Our experts identify advantages and opportunities by leveraging our proven best practices and domain expertise. We guide our clients with technology solutions to support your business of today and your vision of tomorrow for an intelligent, sustainable, and resilient supply chain. Start by building your business case with a discovery workshop and detailed ROI calculation report. REGISTER HERE.