Although it is widely acknowledged that technological solutions can considerably improve the efficiency of transport and logistics activities, few IT managers have a carte blanche to spend as much as they want. If only! According to the findings from the 30th Computer Economics IT Spending and Staffing Benchmarks 2019/2020, for example, 48% of the IT executives in the USA and Canada feel that their budgets are either “somewhat or very inadequate” to meet business needs. Therefore, IT managers obviously need to think carefully about how they invest their money. When sourcing an IT system such as a transport management system (TMS), it’s not only the initial outlay that matters. Internal applications come with an added responsibility for the IT department to perform regular maintenance and updates. These can be costly in terms of both time and money and significantly increase the total cost of ownership (TCO).
The Computer Economics study mentions strategic outsourcing as one way that IT managers are creating room in the budget rather than having to ask the CFO for an increase. At IDS, we’re seeing evidence of this trend here in Europe too. More and more of our customers are taking advantage of our state-of-the-art transport management and control ‘software as a service’ (SaaS) as part of our managed transportation solutions.
Thanks to our focus on IT connectivity, the initial system setup is straightforward. Our system is always up to date with the very latest functionalities. It can be easily adapted and scaled in line with the customer’s specific needs. Application management, technical infrastructure, maintenance and installation of new software all become things of the past. And that really eases the burden on you as an IT manager.
Minimizing variable costs
In addition to saving on investment costs and labour costs, you minimize your variable costs thanks to our pay-per-use model (pre-agreed fixed fee per transaction). This model gives you transparency and control. Furthermore, the IDS system puts an end to investment discussions. No more debates about when (and how!) to replace your own IT system or servers and the associated project coordination and costs.
Small and midsize companies are leading the way
The survey also found that small and midsize organizations are leading the way in terms of SaaS adoption. One reason is that they tend to have fewer legacy systems. That makes it easier for them to adopt cloud systems at the core of their applications portfolio. I agree, but I also believe that smaller IT departments benefit most from the peace of mind gained by outsourcing their TMS infrastructure. So, if you’re an IT manager at a small to midsize company, contact me to discuss how we could lighten the load for you!
Business Development Manager