How to select the right TMS in a limited timeframe

Shippers and logistics service providers rely on Transport Management Systems (TMS) to improve transportation performance. Expectations regarding the value and functionality of these systems have increased significantly. Supply chains have become more complex and TMS platforms must integrate with numerous internal applications and external partners. Software providers have responded by expanding functionality and integration capabilities but this has not made selection and implementation any easier. So how can organizations identify the right TMS within a limited timeframe?

Challenge: finding a TMS that meets evolving requirements

While the main selection criteria remain unchanged, the depth and scope of requirements within each dimension have evolved:

• Industry — Industry-specific capabilities have become increasingly important, as shippers and logistic service providers collaborate more intensively with suppliers, customers, carriers, and internal stakeholders to manage transportation.

• Supply chain — Transport networks are more global and complex. A TMS must support specific modes and flows while addressing service quality, cost, agility, resilience, and sustainability objectives.

• Functionality — Core operational and reporting capabilities are now standard. Differentiation lies in integrated support for real-time visibility, network design, carrier procurement, tactical planning, digital twins, workflow management and AI-enabled decision support.

• Technology — Modern TMS platforms are typically SaaS/cloud-based, requiring robust integration with internal and external systems, as well as high standards for reliability, security, privacy, and compliance.

• Services — Beyond implementation and support, providers must facilitate system integration and the onboarding and training of carriers, suppliers, and customers.

• Ability to execute — Successful implementation requires deep ecosystem knowledge, familiarity with multiple modules and experience managing diverse stakeholder environments.

• Costs — Implementation and operating costs are rising due to expanded functionality, integration and onboarding efforts. However, these investments can be offset by improved service levels, cost savings, and reductions in carbon emissions.

Why market reports and AI tools are not enough

Selecting a TMS requires aligning transport management requirements with provider and solution characteristics across multiple dimensions. Market research reports such as Gartner’s Magic Quadrant primarily reflect the supply side of the market and typically cover only a subset of providers. AI tools can support exploration, but their outputs remain high-level, may lack reliability, and depend heavily on prompts and available data. They do not replace structured analysis or domain expertise.

What Is needed to select the right TMS quickly

Key capabilities include:

• Assessing supply chain and transport strategy, network design, processes and organizational setup to determine business and functional requirements

• Assessing current and future application architecture and defining technical integration requirements

• Defining the partnership model including service scope, implementation approach and timelines

• Identifying and evaluating potential providers by matching customer needs with the capabilities of the provider and TMS, validating this fit through in-depth analysis and formalizing agreements

• Applying project and change management practices throughout the selection phase

By combining domain expertise, analytical design capabilities, market intelligence, proven templates, structured project governance and AI-assisted research, used as support rather than substitution, organizations can make fact-based TMS selection decisions within a short timeframe.

This knowledge platform offers additional best practices for selecting, implementing and optimizing Transport Management Systems, including an overview of more than 70 TMS providers and solutions.