Why the Best Transportation Management Systems Are Proprietary

The best transportation management systems (TMSs) maximize the efficiency of a company’s holistic shipping operations, including shipment tracking automation, load optimization, route planning, and demand forecasting. But before companies can access these transformative benefits, they must decide whether to implement a proprietary TMS or relabelled TMS.

Transportation management systems can come from many sources, each with its benefits and downsides. All shippers should take time to weigh the pros and cons of their options before deciding which is most suitable for their company. 

Our bottom line take? Because proprietary systems are the most customizable and serviceable, they are the most effective for streamlining transportation processes. Here’s why.

Proprietary vs. relabelled TMS

Proprietary transportation management systems are developed and maintained by the companies that own them and are typically customizable to meet the specific needs of their users. Though proprietary TMSs can have more upfront costs, their high level of customization offers users long-term savings through automation and end-to-end visibility.

Relabelled TMSs, also known as “white label” transportation management systems, are developed by one company and then sold to other companies to be rebranded and sold as their own. A relabelled transportation management system may be less expensive than a proprietary TMS. Still, there is often a wide discrepancy in TMS expertise between the companies selling relabelled TMS software and those developing the products. This knowledge gap can force users to seek more support and resources.

The problem with third-party solutions

Third-party transportation management systems often lack the robust customer support of proprietary systems. When a company resells a TMS, it can only provide limited, tier-one support to help users with any software issues or customization requests. 

If a problem comes up that they can’t handle, relabeled sellers must instead contact the software company that developed the TMS for tier-two support and software change approvals. With this workflow limitation, user efficiency suffers, and there’s no guarantee that clients receive software tailored to their needs. 

Benefits of investing in a proprietary TMS

The best transportation management system is, first and foremost, customizable. When a TMS is purchased directly from the software developer, those developers have complete control over the product’s strategic direction. 

Proprietary TMS developers can tailor the software to meet clients’ specific needs—which may not be possible with relabelled solutions. If a customer needs an added feature, proprietary TMS developers don’t have to get permission from a third party. With a base product they can completely control, proprietary TMS developers are more agile in making individual system changes and customizations.

A proprietary TMS is patented and perfected to integrate all modes of transportation in real-time. It allows users to control how the software is used, automating specific labor-intensive tasks to strategically reduce transportation costs throughout the entire supply chain. Depending on their goals, shippers can harness the benefits of mapping technologies, broker markets, currency converters, and other applications. For companies looking to invest in a long-term, quality solution, a proprietary TMS is the best transportation management system.

Lighten logistics loads with CTSI-Global’s proprietary solutions

With a growing network of 14,000+ carriers and our global, multi-modal HoneyBee TMS™,  CTSI provides customizable transportation management solutions for each client’s unique transportation management needs. Contact us today to start building the best transportation management system for your company.