TMS adoption rates have been strong for the last several years. The transportation management software (TMS) market is growing at a solid 17.8% CAGR, as companies invest in either out-of-the-box software or logistics software development, aiming to upgrade their capabilities. Still, selection concerns remain. Should your company proceed with an out-of-the-box system or design a custom TMS?
Let’s figure out an answer below. Plus, what to look for in a transportation management system.
Define & Plan: audit your existing workflows, writing out pain points/bottlenecks you want to eliminate and TMS features that will address them.
Design UX/UI: Create and validate a user flow for your TMS that will handle the pain points you want to address (drivers, managers, and customers), ensuring intuitive program interfaces.
Develop (MVP): Build the TMS system MVP based on the validated user flows, focusing on the core functionality (GPS, notifications, payments, and so on) to evade unnecessary costs.
Integrate: Ensure automated and accurate data flow by connecting your transportation management functionality to the rest of your digital solutions in use (ERP, WMS, CRM).
Test & Launch: Consider completing comprehensive testing of your interconnected TMS solution to ensure it is always available and works as expected before deploying it on live servers.
Maintain & Support: Add new functionality, updates, and improvements to your transportation management system based on user feedback that will let you facilitate your workflows.
IT Craft has comprehensive expertise in custom software development for logistics and TMS platforms, backed by 25 years of operations and a solid portfolio of projects for startups and enterprises. The company has guided system development for many needs, from product MVPs to enhancing mature platforms.
More importantly, IT Craft’s TMS developers combine domain expertise with capabilities of efficiently handling various technological stacks and successfully complete. They can successfully complete integrations of any complexity, deliver future-proof architecture, and optimize the costs of system maintenance.
Services & expertise: custom transportation management solution development, TMS consulting, digital process transformation, legacy TMS modernization, TMS MVP development, system integrations, TMS software support and cost optimization.
Technology stack: Azure, AWS, GCP, DigitalOcean, Spring, .NET, Flask, Laravel, Symfony, Node.js, Xamarin/.NET MAUI, Python, Kotlin, Swift, React, Angular, Vue, React Native, Flutter, Java, C#, HuggingFace, Tableau, LangChain.
Team size: 330+ experts.
Transportation Management System Development for MyCarrier
MyCarrier once started small with an MVP for managing and tracking less-than-truckload shipments and has grown into a full-fledged TMS solution. The portal provides users with a comprehensive overview of available options, complete visibility of all shipments, fast onboarding, and tools for optimized operations.
The IT Craft team provided the required cloud logistics portal on time and on budget. The same team has completed a software transformation, simplifying updates and maintenance, and ensuring scalability.
Results:
The client envisaged a custom system to provide residents of Manhattan with top-level, on-demand laundry services, later focusing on project transformation to adapt to the needs of business customers. A complex analytics system lets the client maintain efficiency and determine improvement areas.
IT Craft engineers started cooperation with auditing the available source code, which they improved and finalized. The team focused on further project transformation upon the client’s decision to pivot to business customers, ensuring complete visibility of all business processes.
Results:
Part of Virtusa company since 2024, ITMagination boasts expertise in designing next-gen tailored transportation platforms for enterprise clients. It holds different partnerships with major cloud providers and ISO 9001 and ISO/IEC 27001 certifications as proof of reliability.
The firm’s engineers ensure the software is built around the client’s unique workflows, reflects the selected technology stack, and meets the envisioned KPIs. As a result, Virtuosa, a global provider of digital engineering services, acquired ITMagination to enhance its own delivery capabilities with top experts.
Services & expertise: digital engineering, legacy software modernization, automated & manual testing, platform engineering, data modernization,
data modernization on Azure and Databricks, AI/ML development.
Technology stack: React, Angular, .NET, .NET Core, Spring, Node.js, Azure, AWS, GCP, GitHub Actions, Azure DevOps, Docker, Kubernetes, Cypress, RESTful API.
Team size: 400+ experts (35,000+ experts across Virtusa).
Top clients: Hochland, Armadillo, Skanska, Man, U.S. Xpress.
Kovix has deep specialization in custom solutions for transportation, logistics, and supply chain domains, emphasizing product tailoring and digital transformation. The company helps clients reach measurable results with tailored functionality, such as faster routes (reduced by 20% for one client) or lower fuel costs.
The firm’s engineers can efficiently support various project needs (real-time data retrieval, high transaction volumes, complex routing) by building scalable architectures. They offer experience across multiple regions, while the company’s clients praise cultural fit and positive team dynamics.
Services & expertise: custom software development, agile teams for projects, applied digital transformation, robotic process automation, warehouse management system.
Technology stack: AWS, Amazon EC2, Amazon RDS, HERE, React, Angular, Node.js, Python, PostgreSQL, RESTful API, GraphQL, Docker, Kubernetes.
Team size: 65+ experts.
Top clients: Nuqlea, Jüsto, Smart Warehousing, CubeLogix, Delivery Basics.
Stfalcon has over 16 years of expertise in designing transportation and logistics management systems, accumulating expertise in TMS, fleet management, tracking, and mobility platforms. It also offers AI-powered solutions as part of end-to-end services that are focused on overcoming clients’ operational challenges.
Stfalcon programmers are noted for their flexibility and commitment to project success. They ensure quick adaptability in dynamic project environments. The company is ISO 9001:2015-certified. Moreover, it offers a wide network of partners to help clients meet large technological needs on short notice.
Services & expertise: custom transportation solution development, discovery phase, web and mobile app development, customer portals, MVP development, transportation data management and integration solutions, cloud migration.
Technology stack: Swift, Kotlin, Vue, React, Flutter, React Native, TypeScript, Go, Node.js, Symfony, MongoDB, MySQL, Docker, Kubernetes, AWS, Digital Ocean, Hetzner, GitLab.
Team size: 80+ experts.
Top clients: TaskRunner, IBMI, Vethem, Ecolines, Obre.
Softnoesis is a small company focused on providing cost-efficient offerings of full-stack logistics and transportation software development among its services. The vendor’s specialists have the necessary skills in route optimization, fleet tracking, analytics, and automation, enabling reduced errors and lower operational costs.
The company’s experts can take over the entire project lifecycle. It can provide scalable architecture, enhanced security, and ongoing, comprehensive post-launch support. The clients praise Softnoesis developers’ adaptability and reliability when meeting unique project needs.
Services & expertise: transportation management system development, fleet and route optimization, supply chain analytics dashboard, multi-platform integration, data security and compliance.
Technology stack: React, Angular, React Native, Flutter, Node.js, .NET, Python, RESTful API, PostgreSQL, MySQL, Redis, AWS, Azure, GCP, Docker, Kubernetes.
Team size: 35+experts.
Top clients: Crystal Lace, Tastemakers, Travel Softdrive, Onwordsy, Platinum Medical Evaluations.
Out-of-the-box solutions are designed to work by default right after software or subscription purchase. Most people think this way: You buy, set up an account, and use it.
However, this is not the case with logistics solutions. TMS software is often “buyer beware.” A purchaser must step up to the plate and learn it—often a daunting task.
Out-of-the-box TMS solutions seek to offer the greatest functionality. The number of fields to fill out within standardized systems is usually beyond an expert’s understanding.
Managers must review a large number of options to add specific details to the system. They mark numerous checks and settings, ensuring everything will work as it should. If they lack expertise, they might need outside help with an implementation.
Then, maybe it is enough to hire guru software engineers who will deliver a system so that it will do miracles?
Sad to admit it, but miracles do not happen. Engineers can effectively deliver a solution for an identified challenge. They need a tight collaboration with a client company’s expert who knows what exactly requires improvement.
While all transportation companies aim to offer the same or similar options, they all run unique processes. Engineers must understand the specifics of business processes to deliver what is expected.
For companies seeking a tailored and scalable solution that aligns with their internal workflows, exploring ERP logistics software can provide a structured approach to building the right system.
Therefore, companies must invest time and resources in whatever software type they choose. One size does not fit all.
Here are the essential elements of a selection strategy:
A specific answer will work for your transportation company once your goals and needs are identified.
The exact thing is yet: when you are looking for a solution for your business, spend enough time on research. Better hire specialists for a discovery phase. It is wise to deeply investigate all pros and cons of each specific implementation. Only then, make a well-weighted decision.
Systems must improve a company’s workflow based on the rules set for business processes. It is quite possible that the selected out-of-the-box software does not provide the needed functionality for the envisaged activities.
If it doesn’t, the company either gets back to the previous workflow and does not use a new system. Or, it must initiate changes in business processes, which leads to temporary productivity drop and internal resistance.
Your company must focus on constant improvements and optimization to survive in the disrupting environment. Timely software updates allow you to introduce the envisaged workflow optimization.
Here, you need Agile app development and/or app updates to embrace the desired improvements in less time. You need to create a competitive edge over the companies that do not know how to adapt as fast as you do.
No matter whether you select an out-of-the-box solution or start custom software development, here are the most essential features to look for in a TMS in 2024:
Real-time visibility is the top requirement for all processes to turn transparent and manageable. Employees need awareness to increase productivity by doing their tasks easily, elaborately, and on time.
Transportation produces the largest portion of the total US greenhouse gas emissions. TMS helps commit to climate control by calculating the optimum routes based on produced emissions. Fuel consumption improves.
Emerging AI capabilities increase logistics companies in two ways. First, AI refines forecasting and lets it balance costs, workload, and available resources. Second, AI-powered chatbots help improve customer service without overloading the support team.
A TMS improves freight management. It decreases the time needed to find the best carrier for a specific load based on several predefined parameters (costs, freight type, immediate availability, rating, etc.).
Partnership management is streamlined because of data exchanges between supply chain participants. TMS automatically shares updates with responsible supply chain participants and sends required data to billing and payroll software.
Reports and business intelligence enable a company to catch important metrics, e.g., GPS data aggregations, and draw meaningful insights into its performance. Emerging trends and improvement areas become visible. The same data is further used to refine AI forecasts.
Smart load planning decreases the workload of a warehouse team and truck drivers. A TMS calculates an efficient load arrangement based on complex parameters, such as stops, space utilization, safety, and load stability.
Certain users need a smartphone or tablet app to fulfill their duties. For instance, drivers need to see the route and related order details. Warehouse managers need to see an item’s location inside the warehouse while away from the keyboard. Mobile access is just a part of the comprehensive role of warehouse management system in modern logistics.
To meet customer expectations, a hybrid model combining centralized and decentralized approaches may be required. A cloud logistics solution helps companies be agile while balancing costs and delivery time.
A finely tuned TMS is the cornerstone of a supply chain’s sustainability. Companies identify and address emerging issues immediately with its help.
Still, no solutions provide a “big red button” that a manager can push, and magic will happen. You need to carefully evaluate and implement a solution that will be effective for your specific business processes.
Here is your routine for selecting between out-of-the-box vs. custom TMS solution:
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