Transport management is becoming increasingly complex. When companies want to maintain control over their transport, they have a choice between working with a Control Tower or purchasing their own Transport Management System (TMS). Both have their advantages, but the key lies in the difference between them: a TMS is for shippers who manage transport in-house, while a Control Tower is intended for those who want to outsource transport management and optimization and benefit from external knowledge and expertise. In this blog, we will discuss both options with you.
A Transport Management System is a digital tool that allows shippers to manage their transport processes themselves. From a single platform, you can organize shipments, plan routes, compare rates and track performance. The system automates recurring tasks and provides insight into costs and performance. In short, a TMS is the solution for shippers who prefer to manage and optimize their transport themselves.
A Control Tower is not a stand-alone system, but more a service offered by a 3rd party that uses a TMS, among other tools. On top of that, a Control Tower adds specialists. The Control Tower monitors the entire transport process: from organizing daily shipments to data-driven insight, improved visibility, cost savings and structural performance improvement. This includes proactive intervention in the event of disruptions, identifying opportunities for improvement, consolidating shipments and supporting sustainability goals. For companies that prefer to outsource their transport management, this is the ideal solution. Control Towers come in many shapes and sizes, from non-asset and independent to part of a logistics service provider.
Between Do-It-Yourself and outsourcing transportmanagement, there are also hybrid options. Here, the shipper and the Control Tower work together within the same transportmanagement platform. The shipper can perform certain tasks themselves and gain insight into their transport flows, while the Control Tower takes on other asks. This also allows for customization between divisions or locations within a larger organization. This model combines the best of both worlds: maintaining control where desired while benefiting from the knowledge, expertise and extra capacity of the Control Tower. This is particularly useful when personnel are scarce.
A TMS and a Control Tower not mutually exclusive – they also strengthen each other. The TMS provides the data and functionality for daily operations, the Control Tower adds manpower, expertise and strategic insight, and the hybrid form enables collaboration and future-proof flexibility.
This creates a combination that offers both operational control and strategic insight – with the flexibility to choose exactly the right level of in-house or outsourced operations that best suits an organisation.
The choice between a TMS, a Control Tower or a hybrid approach depends on the question: do you want to handle transport entirely yourself, outsource it, or go for a mix of both? A TMS gives shippers the means to maintain control independently, while a Control Tower based on that same TMS can unburden while offering opportunities to optimize operations. The hybrid variant offers a flexible middle ground. Together, these solutions offer multiple paths to the perfect balance between operational efficiency and strategic optimization.
That is the power of collaboration. That is the power of IDS.
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