Benefits of a Cloud-Based TMS System
A driving technological element within the TMS market is the move to cloud-based platforms. The are a number of reasons why going to the cloud is beneficial, but before jumping into the list of benefits let's explain cloud computing first.
Cloud computing relies on sharing data storage and computing power across a large user base to drive economies of scale for the users of the cloud platform. The pricing of a cloud system is reflected in these two components by charging its users based on transactions executed.
Cloud computing helps the companies buying the technology to avoid IT infrastructure and management costs, as those resources are off-site and "in the cloud".
The National Institute of Standards and Technology identifies “five essential characteristics” of cloud computing:
- On-Demand Self Service
- Broad Network Access
- Resource Pooling
- Rapid Elasticity
- Measured Service.
All of these characteristics explain the reasoning behind why firms can now run faster, with improved manageability and less maintenance.
“The Cloud”, as it relates to TMS software, is a relatively a new concept. Along with the characteristics above, keeping the TMS software “in the cloud” provides even more benefits than just make things easier for users of the technology.
Advantages of Cloud TMS Software
Ability to Login Anywhere
Eliminate Internal Hardware
Reduce / Eliminate the Need for IT Personnel
Less Costly to Implement and Maintain
High Functionality for Companies of ALL Sizes
Better Connectivity Options
Gain Access to Best Practices
In short, cloud-based TMS solutions are becoming increasingly essential to freight and logistics success and by understanding its importance allow its users to fully take advantage of its capabilities.
For more on Transportation Management Software (TMS), that will help you in your buying journey we invite you to check out these articles:
- 2019 Best Transportation Management Software Systems
- Gartner Magic Quadrant Evaluation of the Best Transportation Management Systems (TMS)
- Transportation Management System - Functionality, Benefits & Implementation
- TMS Market Size & Growth Expectations
- Ways a TMS Benefits a Company's Supply Chain
- Transportation Management Software (TMS) Defined in 100 Words