We’ve been closely watching the storm brewing in the transportation sector - something many Reddit users are talking about too. Across Europe, road freight costs have increased by 13% due to record fuel prices and driver shortages. Add to this the demand for greener operations and stiffer competition, and it’s clear that many businesses are feeling the strain.
The pressure is building, and the need to change is getting more urgent. For many, this means rising expenses, disorganized processes, and frustrated customers. But it doesn’t have to be that way for you.
There’s a solution: Transportation Management System (TMS) can change the game. They help you streamline logistics, reduce waste, and gain better control over your operations - all while saving money and improving service.
At Inoxoft, we’ve worked with logistics companies to build TMS solutions that solve real problems and give you measurable results. In this article, we’ll explain how to implement a TMS, evaluate its ROI, and share examples of companies that used custom solutions to solve the challenges you face right now and succeed.
- TL;DR
- How Our Client Achieved $5 Million Annual Savings Through Transportation Management Application
- Client Challenges
- Our Solutions
- Project Outcomes
- How We Made a Custom Solution for Our Client: A Detailed Process Overview
- Assessing Needs
- Customizing Systems
- Writing Technical Documentation and Supporting
- Facilitating Smooth Transition
- Tips for Evaluating Transport Management System Project Implementation ROI
- Track On-Time Delivery Rates
- Evaluate Carrier Performance
- Conduct Freight Spend Analysis
- Gather Customer Satisfaction Metrics
- Utilize Data for Continuous Improvement
- Set Regular Review Intervals
- ROI Evaluation Template for TMS Implementation
- 1. Add up all the expenses
- 2. Summarize all the measurable improvements
-
3. Calculate ROI
- Need a Custom Solution to Manage Your Transportation Processes? Trust Us
- Conclusion
TL;DR
• Road freight costs have increased by 13% due to record fuel prices and driver shortages, prompting digitalization actions from logistics companies.
• Our team developed a Transportation Management Application for a well-known logistics provider in the United States, resulting in $5 million in annual savings and a 30% increase in customer satisfaction.
• Our development process includes the following steps: needs assessment, system customization, technical documentation writing, ongoing support, and facilitating a smooth transition.
• 6 ways of evaluating your solution’s ROI: track on-time delivery rates, evaluate carrier performance, conduct a freight spend analysis, gather customer satisfaction metrics, use data analytics, and set regular review intervals.
• ROI evaluation formula: (Total Benefits – Total Costs) ÷ Total Costs × 100
How Our Client Achieved $5 Million Annual Savings Through Transportation Management Application
Our client, a well-known logistics provider in the United States and a true expert in freight brokerage, had been in the game for years. They had a solid reputation for reliability, but behind the scenes, things weren’t as smooth as they seemed. Their core issues kept haunting them: old systems were a patchwork of disconnected platforms, causing constant bottlenecks and chaos in their day-to-day operations.
Client Challenges
We conducted our traditional discovery phase to deeply understand what was causing our client’s recurring issues.
• The team bounced between disconnected systems, which meant constant manual work, frequent mistakes, and frustrating delays.
• Inefficient processes pushed freight costs higher and drained their budget.
• Without accurate tracking, they struggled to keep customers and partners updated.
• Late deliveries and slow service chipped away at customer trust and satisfaction.
Our Solutions
Understanding their key pain points, we suggested a custom Transportation Management App. And it wasn’t just about creating something new—it was about solving the problems holding them back and helping their business move toward digital-first operations. Our solution included:
• Integrated systems: we connected their numerous platforms into one streamlined system, so data flowed naturally and tasks became simpler.
• Real-time shipment tracking: everyone, from their staff to their customers, can now see where shipments are at any moment.
• Automated workflows: tasks like invoicing and order entry became automatic, cutting down on human error and saving hours of work.
• Detailed analytics: with clear insights into their operations and costs, they can finally make decisions based on real data.
Project Outcomes
What started as a frustrating mix of separate tools was something we transformed into a unified system. Their team finally has the tools to work smarter, not harder. And here’re our results in numbers:
• Our client saved $5 million just 1 year after implementation by optimizing routes and reducing manual work.
• Customer service tasks that used to take hours were reduced by 40%, giving the team time to focus on other priorities.
• On-time deliveries improved a lot, leading to a 30% increase in customer satisfaction in just 6 months.
• The real-time fleet tracking feature meant fewer “Where’s my shipment?” calls and faster, more accurate answers when customers did ask.
Facing similar challenges? We can help you save time and money with a custom TMS. Contact us to start your project.
How We Made a Custom Solution for Our Client: A Detailed Process Overview
When logistics companies come to us, they often talk about the usual pain points – soaring operational costs, the need to reduce their carbon footprint, and struggles with adopting new technology. But here’s the thing: no two situations are exactly alike. Every business has its own challenges, and to create a solution that genuinely works, we dig deep to understand what’s happening behind the scenes.
We’ll explain how we approached the transport management system project mentioned above. It’s a great way to see how this kind of solution can come to life.
Assessing Needs
As usual, we start with a discovery phase when we take a look at the client’s operations with an all-round analysis. We organized interviews with everyone involved – logistics managers, drivers, and support staff – to get a complete view of what was working and what wasn’t.
What we found was eye-opening. Employees were spending hours manually planning routes, which caused delays and drove up fuel costs. On top of that, they didn’t have a centralized tracking system and couldn’t keep customers in the loop, leading to communication gaps and frustration among staff. Here’s what the project manager had to say about this discovery:
“We’ve seen this many times—our client relied mostly on manual processes, and this in times when some companies replace half of their staff with AI and robots. This setup was holding them back. So, you either adapt, or you lose; there is no other option. Our team quickly figured out a solution because, from our experience, we knew that by automating and centralizing their systems, we could cut down wasted time and give them a real edge.”
Customizing Systems
Thanks to our experience, we built a TMS that worked perfectly with the client’s current systems. We linked it to their ERP system, so every time an order was placed or inventory changed, the updates happened on their own – no one had to input the data manually.
This setup gave the team a clear picture of what was in stock, so they didn’t waste time planning deliveries for items they couldn’t ship. Additionally, the plain, intuitive design helped the staff quickly and easily adopt and learn the system. Here’s how our senior software engineer explained it:
“We made sure the TMS and ERP systems shared information in real-time and updated themselves, so the team didn’t need to spend hours on data entry anymore. We also designed the interface to be super straightforward, so anyone could start using it without extra training. It really helped the team focus on their work instead of fixing mistakes caused by outdated information.”
Writing Technical Documentation and Supporting
During this step, we put together detailed documentation to show how to set up the TMS, link it with other tools, and use APIs to automate tasks. To make things easier for the client’s developers, we also included practical code examples they could use to connect the TMS with their ERP system and automate data sharing.
Then, we helped the client integrate the TMS with tools like their CRM and accounting software, so all systems could work together. While doing this, we teamed up with their IT department to fix syncing issues between the TMS and CRM, which helped employees communicate with customers and reduced errors when managing orders. Here’s how the project’s team lead described this step:
“We tried to make the documentation easy to follow, breaking down processes into simple, actionable steps to save their developers time. We also worked with their team, offering real-time support to fix issues. For example, during the ERP-TMS sync, we spotted some data mismatch problems and helped set up data validation checks and adjust the API endpoints for better consistency. Also, we optimized database queries to speed up the processing of real-time updates.”
Facilitating Smooth Transition
When the client switched to the new system, we ensured they had the support every step of the way. Our team was available to answer questions right away. In the first few weeks after our custom application was up and running, users noticed some issues with getting data synchronization between the systems.
Whenever these roadblocks came up, we acted quickly to fix them, so that our client’s operations didn’t get delayed and they could keep working without downtimes. Here’s what says the project’s team lead:
“We knew the transition could come with a few bumps, especially with data syncing across such multicomponent systems. So, we made sure to be right there with the client, solving problems and minimizing any interruptions to their workflow – just as we usually do.”
Ready to improve your logistics operations? Let’s discuss how we can help you implement a custom solution that meets your needs.
Tips for Evaluating Transport Management System Project Implementation ROI
Investing in technology is more than just keeping up with the trends, especially if you want to achieve meaningful results. The tools you choose should directly improve how your business operates and provide real, tangible benefits. But developing a new system is only the first step.
Here’s the secret: to make it worthwhile, you need to assess its return on investment (ROI). After all, technology should support your goals, not just add to your expenses. Let us share a few practical tips based on real-life cases to help you maximize your potential.
Track On-Time Delivery Rates
One of our clients wanted to reduce their delays, so they asked us to add a tracking system to their TMS, as they wanted to monitor delivery metrics more closely. We carefully reviewed all their historical data to find specific issues and bottlenecks that were holding back their performance. With these insights, we jointly adjusted delivery routes and schedules to get the most out of their resources and ensure punctual deliveries. Our specialist shares:
“We put a lot of effort into optimizing route and execution, and it paid off. I can say that this project wasn’t really about getting deliveries done faster—the real value was in the overall efficiency of the entire operation since in logistic companies everything works together, like a chain.”
Evaluate Carrier Performance
What makes a logistics operation perform at its best? For one of our clients, the answer was right in their TMS. They used the system to track carrier performance, focusing on metrics, such as on-time pickups, delivery reliability, and responsiveness. Historical data analysis helped to find surprising trends – some carriers always performed well, while others had trouble with the basics.
“We set up dynamic dashboards in their TMS that worked like a scoreboard for carrier performance. They could quickly tell which carriers were delivering (pun intended) and which ones they needed to replace, so they could make better choices to improve every shipment.”
– shares our senior software engineer.
Conduct Freight Spend Analysis
In one of our other projects, the client wanted to get a clear picture of their shipping expenses, so they turned to their built-in TMS analytics. They compared current freight costs with past data and quickly discovered areas where they were overspending. Armed with this information, they made targeted adjustments to control costs without affecting the quality of services. That’s what they shared with us:
“Seeing expenses in real-time gave us a huge advantage. We could act quickly, cut waste, and redirect our budget to more important priorities. It was definitely the right approach to technology investments because we managed to set our business up for long-term growth”
Gather Customer Satisfaction Metrics
Companies bend over backwards to gather feedback from their customers, and that’s the right approach because no matter how good your numbers are, only honest reviews can predict whether your business will thrive long-term or become irrelevant after a few years. One of our clients decided to collect feedback by pairing customers with direct conversations, turning it into actionable insights about delivery times, communication quality, and overall service experience. Here’s what we did:
“We helped design a feedback loop that kicked in as soon as deliveries were completed. Survey responses and customer comments were linked to specific orders, so the client could spot patterns they’d never noticed before. And this wasn’t just a data collection strategy, it also helped our client build trust, one shipment at a time.”
– says our expert.
Utilize Data for Continuous Improvement
Today, data is far more than just numbers on a screen – it’s a tool businesses depend heavily on. One of our clients decided to make the most of their TMS by holding regular review meetings and using predictive analytics to monitor KPI trends. When they noticed the delivery delay pattern, they didn’t stress. Instead, they used the data to adjust routes and schedules, keeping disruptions to a minimum.
“We added predictive analytics to their TMS, turning data from something they could only react to into a tool that helped them make long-term plans. Now, they could see issues like weather disruptions coming and take action before they cause any problems, keeping their operations ahead of the curve.”
– says our business analyst.
Set Regular Review Intervals
How do you stay ahead when things are always changing? One of our clients found the answer in regular KPI reviews. They brought together key stakeholders from logistics, operations, and customer service teams to turn performance metrics into clear action steps. After each meeting, everyone knew exactly what they needed to do next. That’s how one of the team members described this setup:
“We created a shared KPI dashboard that helped start meaningful conversations. During these meetings, each department shared insights and worked together to solve problems, so their TMS continued to deliver optimal results.”
ROI Evaluation Template for TMS Implementation
To make things easier for you, we’ve laid out a clear table to break down how to calculate ROI. Here’s the step-by-step breakdown:
ROI Component |
Description |
Estimated Costs |
Estimated Benefits |
Net Benefit |
Initial Software Investment |
Cost of developing TMS software. |
$500,000 |
N/A |
-$500,000 |
Integration Costs |
Expenses related to integrating TMS with existing systems (ERP, CRM). |
$200,000 |
N/A |
-$200,000 |
Training Costs |
Costs associated with training staff. |
$100,000 |
N/A |
-$100,000 |
Annual Maintenance Costs |
Ongoing costs for software updates and support. |
$50,000 |
N/A |
-$50,000 |
Freight Cost Reduction |
Savings from optimized routing and reduced manual processing. |
N/A |
$5,000,000 |
+$5,000,000 |
On-Time Delivery Improvement |
Increased revenue from improved performance and customer retention. |
N/A |
$1,000,000 |
+$1,000,000 |
Carrier Performance Enhancement |
Savings from improved carrier selection and management. |
N/A |
$500,000 |
+$500,000 |
Customer Satisfaction Increase |
Revenue growth from enhanced customer loyalty and repeat business. |
N/A |
$250,000 |
+$250,000 |
Automation Savings |
Reduced labor costs due to automation. |
N/A |
$300,000 |
+$300,000 |
Analytics and Reporting Efficiency |
Cost savings from improved decision-making. |
N/A |
$200,000 |
+$200,000 |
To make it clearer, let’s look at an example of how to calculate ROI in three steps.
1. Add up all the expenses
Imagine a company initially investing $500,000 to develop a TMA. Additionally, they spend on:
• Integration costs: $200,000
• Training costs: $100,000
• Annual maintenance costs: $50,000
Altogether, the Total Costs amount to $850,000.
2. Summarize all the measurable improvements
On the other hand, after implementing the TMA, the company achieves significant benefits:
• Freight cost reduction: $5,000,000
• On-time delivery improvement: $1,000,000
• Carrier performance enhancement: $500,000
• Customer satisfaction increase: $250,000
• Automation savings: $300,000
• Analytics and reporting efficiency: $200,000
So, the Total Benefits amount to $7,250,000.
3. Calculate ROI
Now, let’s calculate ROI using the formula:
ROI = (Total Benefits – Total Costs) ÷ Total Costs × 100.
Plugging in the numbers:
(7,250,000 – 850,000) ÷ 850,000 × 100 = 752.94%.
So, the investment delivered about 753% return, turning the investment into a massive success!
Need a Custom Solution to Manage Your Transportation Processes? Trust Us
One we know for sure: logistics isn’t just about moving goods from A to B, it involves fixing problems, improving processes, and responding to change. Over the years, we’ve worked with many companies to master all of these skills. And we’ve also learned that the right software helps businesses grow and scale.
When you choose us for transportation management application development, you’re gaining a partner who’s ready to invest in your success. Here’s what sets us apart:
• Future-Proof Scalability. Your business will grow, and your software should grow with it. We design systems that expand as your operations evolve.
• You’re in the Driver’s Seat. We don’t just hand over a finished product. Through continuous feedback loops, we work with you every step of the way to create software that fits your needs like a glove.
• Quick Changes, Big Results. With our iteration process, your ideas turn into actionable features in the blink of an eye. No red tape, no waiting months for updates.
• High-Tech for High Profits. Whether it’s custom development, AI integration, telematics solutions, or BI tools, we have experience in it all.
Let’s make your operations smarter and faster together. Get in touch with our team and let’s build the tools that will drive your success!
Conclusion
Transportation management systems are here to simplify the complex world of logistics, making your operations faster and more cost-efficient. Think of them as the backbone that automates route planning, carrier selection, and freight billing – freeing up your team to focus on customer service and business development.
When done right, a great TMS can transform your entire supply chain and make a difference between a clunky, slow-moving team and one that runs like a well-oiled machine. Automating manual tasks, you reduce wasted miles, dodge costly delays, and get the most out of every vehicle in your fleet.
Our team of professionals blends years of hands-on logistics experience with technology excellence to craft solutions that fit you just right. From the first in-depth analysis of your needs to support after implementation, we make sure your system solves today’s problems and prepares you for tomorrow’s challenges.
Want to work smarter with innovative tech? Let’s connect and start transforming your operations.
Frequently Asked Questions
How can I ensure a smooth implementation process for a transportation management application?
Start with a detailed analysis of your business needs. Clearly define your goals—whether it’s optimizing routes, reducing delivery times, or improving customer satisfaction. Involve key stakeholders, like your operations team and drivers, early in the planning stage to get their input.
Next, choose a solution that matches your transport management system requirements. If you’re going with a custom-built TMS, work with experienced developers who understand the transportation and logistics industry. Provide them with clear feedback at every stage, from design to testing.
Also, plan for training sessions to help your team understand how to use the TMS effectively. Finally, set up reliable support channels with your TMS provider or developers.
What are the common challenges in implementing a custom TMS?
Implementing a custom TMS often comes with a few hurdles:
- A TMS typically needs to communicate with other systems like ERP, CRM, or inventory management software. Integrating these can get tricky, especially if the other systems are outdated or lack APIs.
- Poorly maintained or inconsistent data can slow down the setup. Cleaning up existing records is often overlooked but necessary.
- Employees may struggle to adapt to a new system, especially if they’re used to manual methods or older software.
- Custom development projects sometimes exceed their initial budgets due to scope creep, unexpected challenges, or underestimated complexity.
- A TMS designed for current needs might not handle future growth or changing requirements effectively.
What strategies will you employ to ensure real-time data synchronization between the TMS and other systems?
We start by setting up APIs and middleware to connect the TMS with other systems like ERP or CRM. Then, we enable webhooks to send updates instantly. This means any changes in the TMS, like updated order status, show up right away in connected systems.
Next, we map and validate the data. Validation rules catch errors during transfers to make sure the data stays accurate. For handling large volumes of transactions, we use cloud-based infrastructure that can scale easily, so the system stays fast and reliable, even when your business grows.
Before launching, we test everything. We run the system through different scenarios and fix any issues that come up. Lastly, we set up monitoring tools and alerts. These help us keep an eye on the system, spot problems quickly, and fix them right away.