Published Date : Apr 04, 2016
The IT industry has been experiencing one of its biggest revolutions in the past couple of years. This was directly caused by the introduction of software as a service models into multiple aspects of information technology. The textbook definition of SaaS implies that companies own certain software that they can receive and get managed by multiple providers. SaaS platforms are never kept in-house, they are always maintained by the creators themselves. One of the many markets that took advantage of the SaaS influx is the global market of transport management services. TMSs have been reinvented through the use of cloud-based and on-demand services.
Advantages of SaaS in TMS
One of the greater benefits that SaaS-based TMSs can offer over conventional transportation management services, is a lower price of entry. A user needs only to pay for what is needed, rather than pay for an entire package which can include portions that are redundant to the user. TMSs are usually high on software implementation priority as well as marketing budgets, and therefore having an SaaS platform that can help save implementation costs can be a major advantage. Other benefits of SaaS-based TMS platforms include speedy prototyping, vendor services that can take care of uptime, upgrades, and security, and a high rate of scalability and integration. Additionally, these platforms allow users to work from anywhere. This allows users to travel and make full use of the cloud-based TMS services, which is a major boost to the business of the travelling decision-makers.
Going Third-party is Less Risky in Transport
One of the major challenges in the global market for transportation management services is faced by the users towards the end of usability of on-premise solutions. Most TMS users have faced this dilemma every five years, when the end-of-life letters mails come in and the owners are left with a huge decision to make. They need to decide whether it is worth the risk of employing a new on-premise TMS, which involves extremely high costs as well as high-risk upgrade requirements. On the other hand, the use of third-party TMS services will allow for a smoother, cheaper, and definitely less-risky market strategy.