A recent posting on a Linkedin group discussion board asked, “Which TMS solutions are best suited for LTL carriers? Why?” While a question like this will probably draw its share of blatant vendor responses, we thought we’d try to offer some useful information. We offered the discussion leader a conversation on this topic—this is a simple question that has a complex answer. It can’t be properly addressed by reasonably brief written comments.
But for all of our readers, please know we like being part of the industry conversation and always welcome your questions and comments.

Just so you know, here’s our comment to the question:

 

Hi,
There are many TMS solutions on the market, each with strengths and weaknesses. However, the uniqueness of LTL actually provides clarity and priorities in looking at offerings. For example, the complexity of LTL pricing with detailed variables--accessorials, lane profitability/route management, and customer service delivery requirements, etc.—places a premium on the contract and pricing management capability of a TMS.

In LTL, “the devil is in the details” and contract management and pricing enables a LTL carrier to put forth competitive pricing while protecting margin and profitability. This, combined with multiple operational system requirements (route management, asset management, driver management, etc.) as well as customer facing technology such as a single carrier or a multi-carrier TMS, and it becomes readily apparent that the solution is really a combination of solutions.

Without taking up too much space or your time, please know there are many other important points that are examined regarding an LTL TMS selection. If you want to discuss by phone or via email, please contact me. And, I’ll also be happy to talk about how the requirements for what makes a great TMS for a shipper versus a carrier (or 3PL) can be very different.

 

Thanks for the discussion and I hope I’ve been of some help.