Building the Business Case for TMS – an OSU Study

Building the Business Case for TMS – an OSU Study


With the increasing complexity of global supply chains, the need for supply chain automation has never been greater. This increased complexity demands increasingly sophisticated technology solutions that often require a significant financial investment from businesses and come with a steep learning curve. Eyefreight and The Ohio State University’s Fisher School of Business recently launched a survey to discover just how well supply chain executives are making their case for supply chain automation.

Despite the investment and learning curve, an ARC Advisory Group survey on the return on investment (ROI) of transportation management systems (TMS) found that respondents indicated freight savings of approximately six percent with the use of any TMS application. The majority of these savings go to the bottom line, with nearly 60 percent of respondents indicating that less than 25 percent of the net savings were absorbed by the TMS.

Unfortunately, many supply chain executives fail to win approval for TMS investments because they don’t make a compelling business case up front, despite the proven ROI.

Eyefreight CEO Ken Fleming and Jim Hendrickson, professor at The Ohio State University’s Fisher School of Business, hope to answer the question of “How can I create a compelling business case?” when they present “Exploring the New World of Transportation Management” at the Gartner Supply Chain Executive Conference in May.

The presentation will cover the importance of creating a business case for a TMS internally within one’s organization and will feature the results from an OSU study on case creation, approval processes, failures, etc. To make your voice heard and contribute to the presentation, check out the survey here.

The bottom line: transportation and logistics executives must increasingly take a bigger – and more mission-critical – seat in the board room. To communicate more effectively on how TMS technology can create efficiencies in answering the demands of today’s supply chain, one must understand its complexities and the advantages of automation to present a strong case to those making the big decisions.