Unveiling new findings that could reshape industry standards, JBF Consulting, in collaboration with logistics expert Adrian Gonzalez of Adelante SCM, has conducted a survey revealing significant gaps in user satisfaction with Transportation Management Systems (TMS).
This study not only probes the integration challenges of TMS with other vital technologies but also assesses the impact of AI and machine learning advancements on the logistics and supply chain sectors.
"The road to TMS satisfaction is fraught with integration challenges and unmet expectations. There's a critical need for vendors to align more closely with the practical realities of their customers," says Brad Forester, CEO at JBF Consulting.
Survey Highlights:
- User Satisfaction: Only half of the respondents are satisfied with their TMS, with a mere 8% reporting they are "Very Satisfied."
- Key Challenges: Unmet promises regarding cost and service benefits are the primary grievances of 86% of dissatisfied users. Integration and functionality issues are also significant pain points.
- AI and Machine Learning: Despite high expectations, 72% of users feel neutral about the AI advancements in TMS, indicating a substantial gap between expectations and actual deliverables.
"Overall, the survey results underscore what's been true for a long time: conducting a thorough due diligence process upfront is critical for achieving sustained satisfaction with the TMS you implement. Determining which TMS solution is right for you begins by thoroughly understanding your current processes and defining your desired future state. The survey results also suggest that it would be worthwhile for companies to come up with a "TMS satisfaction" metric -- i.e., define upfront how they will measure/quantify their satisfaction with the solution." says Adrian Gonzalez, President of Adelante SCM.
Key Findings:
- Integration Planning is Key: Effective integration planning during the design phase is essential to prevent functionality issues.
- Vendor Support Varies: The level of vendor support from sales to implementation greatly impacts user satisfaction, particularly evident in DIFOT [Delivered In Full, On Time] performance metrics.
- A Measurement Gap Exists: The absence of formal success metrics suggests an opportunity for establishing new standards, including SMART objectives for solution satisfaction.
According to Mike Mulqueen, Executive Principal, Strategy & Innovation at JBF Consulting, "Understanding what makes a TMS solution effective goes beyond just technology—it’s about ensuring the system and accompanying processes, address the critical needs of the business. This survey has been instrumental in highlighting where the gaps lie and what we, as an industry, need to focus on."
User Experiences Reveal Gaps in TMS Satisfaction and Vendor Performance
Notable comments from respondents:
"We do not track satisfaction, but we manage annual upkeep costs and savings. Neither have been delivering on their promise despite using a Top 3 brokerage TMS system in the United States." - Supply Chain Executive
"Biggest factor towards dissatisfaction would be [lack of] system reliability/availability; our expectation is that the system will always be available except for planned downtime." - Operations Director
"We implemented [a TMS solution] last year and the results promised were 95% DIFOT [Delivered In Full, On Time] but we finished last year at 82%." - Sr. Logistics Manager
AI and Machine Learning
While many advancements have been made in AI and Machine Learning, deliverables have yet to meet expectations. Further research is needed to understand why, but it is possible that users do not fully understand how AI is embedded into their system or the value those capabilities offer. Another possibility is that vendors are overselling what AI and Machine Learning are currently capable of.
Ultimately, users care more about the end results than whether or not those results were achieved using AI. With that said, as AI continues to evolve within TMS, companies will need to stay informed on the latest developments and deliberately integrate these technologies to reap maximum benefits.
Get the Full Survey Report:
For a comprehensive understanding of the TMS satisfaction trends and detailed insights, download the full report here: https://bit.ly/2024-TMS-Survey.
About the Survey:
The survey targeted members of the Indago supply chain research community, encompassing executives from the manufacturing, retail, food & beverage, and distribution sectors. It provides a comprehensive look at the current state of TMS satisfaction and lays the groundwork for future improvements.
About the JBF Consulting:
Since 2003, JBF Consulting has served as a beacon for shippers of all sizes across various industries, helping them maximize the value of their logistics systems. With a deep focus on logistics operations experience, transportation technology, and problem-solving skills, JBF Consulting is dedicated to translating complex logistics challenges into actionable solutions.