Top 3 Reasons to Deploy TMS Solutions in 2019

There are three absolutely critical reasons to finally implement a new logistics IT solution (or to replace the inferior one you already have) in 2019.   Whether your organization would benefit most from a TMS, a powerful optimizer, fleet management tools, freight settlement solutions, advanced dock-door scheduling tools or even a yard management system, there are three nearly certain dynamics we’ll experience in 2019 that you won’t want to address without solid supply chain solutions at your disposal. 

Top Reason #3 – The Economy Will Turn Downward

As discussed in our recent blog post, “Fable of the Ant and Cicada Applied to Shippers and TMS Planning” the best time to plan for lean times is during times of plenty.  Even though you’re super busy right now managing robust business volume, it is still easier to get capital approval for new software implementations while the bottom line is looking fat and juicy.   Once revenue drops – and downturns almost always occur when least expected – it will be much more difficult to gain buy-in and approval from finance stakeholders.

Be a hero by urging your CFO to invest in technologies and tools that will not only save time and money today, but even more critically when the economy cools.  It may happen sooner than anyone expects.  In fact leading indicators suggest more than the average post-holiday season slowdown.  DAT reports spot market rates have been in decline somewhat, indicating that capacity challenges may be easing as trucking firms have finally absorbed the shock of the ELD mandate and Hours of Service changes.  The effort you make today to push for better logistics technology will pay off handsomely when the punchbowl is removed from the party.

Top Reason # 2 – The Economy Will Continue to Cook

Contract rates remain high in spite of the potential for a cooling economy in 2019.  Again, according to DAT, “Shippers… renegotiated carrier contracts in 2018 to avoid spot market volatility that plagued them last winter. That drove contract rates up 15% for the first ten months of this year, compared to the same period in 2017.”  DAT analysts are projecting a slower first quarter as is typical of seasonality, but then a rebounding, strong Q2.  Between the proposed, large-scale infrastructure projects at the federal level, strong demand for construction materials to rebuild the numerous areas damaged by wildfires and hurricanes in 2018, the economic picture is poised for continued growth.   Again, when the economy is humming and business is good, the time is optimal to invest in logistics IT solutions.  Perhaps use the projected Q1 lull to deploy a new system; but you’ll have to start today to make that happen.

Top Reason # 1 – Supply Chain Automation is Key to Competitive Advantage in Any Economy

Whether the economic picture is bullish or bearish, the simple fact remains, automation technology is no longer a “nice to have” when it comes to supply chain management.  Any organization resisting this progress will certainly find themselves falling farther and farther behind their competition.  Even a decade ago, powerful supply chain management software was affordable only to the largest organizations.  Today however, cloud delivery and subscription pricing makes it cost effective for all shipping organizations to embrace automation tools and technologies.  There’s no good reason to cede the high ground to your competition.  Get busy selecting and implementing logistics IT solutions now.  UltraShipTMS is running a “free implementation” promotion for the next few weeks.  So call today to get started.