A reliable transportation management system (TMS) isn’t just an operational tool for shippers, 3PLs, and brokers — it’s a lifeline that minimizes losses and maximizes profit potential in an industry where margins are razor-thin.
Switching to a new TMS provider is a big decision, but sticking with the wrong one can lead to inefficiencies, poor service, and higher costs, ultimately hindering your long-term growth. But how do you know it’s time to explore other options?
Here are five clear signs it’s time to change TMS and start looking for a better solution.
1. Going Through an Acquisition
If your TMS provider is in the midst of being acquired by another company, you can expect fundamental changes from the new owners, and they may not always be an improvement.
New ownership can shift priorities, leading to policy changes or even reduced focus on customer needs. Some features you rely on might be cut, and service quality can suffer during the transition. Worse, a new company might impose workflows or processes that don’t align with your organization’s needs.
Acquisitions also often bring operational disruptions. If your provider is suddenly less responsive or if integrations with your systems start to break down, it’s a warning sign. You deserve a new TMS that keeps things running smoothly, even during transitions.
2. Declining Support or Quality
When it comes to your TMS, you should expect great support, so if your TMS provider’s support team becomes unresponsive, it’s time to pay attention.
A reliable TMS should offer quick solutions, whether you encounter a bug or need to adjust workflows. But when support tickets go unanswered, or bug fixes arrive slower than expected, it shows a lack of alignment with your organization’s needs.
Timely software patches and updates are essential to keeping your system running smoothly. If these start to decline, your team may waste time troubleshooting issues on their own. A TMS provider that prioritizes its customers will ensure continuous improvements. And if that quality is missing, it might be time to look elsewhere.
3. Product Stagnation
Along those lines, product stagnation is another sign it may be time to change your TMS.
If your TMS provider isn’t delivering new features, enhancements, or updates, it can limit your ability to stay competitive. A stagnant product means you miss out on opportunities to streamline operations, improve workflows, and adopt new technologies.
TMS providers should actively innovate to meet the evolving needs of logistics and supply chain management. If your current solution feels outdated or lacks critical features, you risk falling behind. Your provider should grow with your organization and offer tools and improvements to keep you ahead of industry changes.
4. High Turnover
Frequent employee turnover at your TMS provider is another red flag. When key account managers, product experts, or support staff leave, the quality of service usually takes a hit.
High turnover also indicates instability within the company, which could mean they’re struggling with internal issues or failing to retain talent. And when the turnover rate increases even for just a week, product failure rates go up by almost a full percentage point.
Without consistent service from familiar representatives, you may face delays in support and decreased satisfaction. Long-term improvement becomes difficult if your provider is constantly hiring new employees and dealing with internal churn.
5. Unjustified Pricing Changes
Unexpected price hikes are frustrating, especially when they come without added value.
If your TMS provider raises rates without offering new features or services, it’s a bad sign that could indicate it’s time to change TMS. A trustworthy provider is transparent about pricing changes and provides clear justifications for cost increases.
Inconsistent or hidden fees can signal poor management or an attempt to offset internal challenges at the customer’s expense. Your organization deserves a provider that offers predictable pricing without surprise charges.
Know When It’s Time for a New TMS
Staying with the wrong provider may cost your organization in the long run.
The signs of an underperforming TMS provider are clear: operational disruptions from acquisitions, poor support, stagnant features, high turnover, and unjustified price hikes. If these issues sound familiar, a new TMS is the way to go.
To learn more about how to smoothly transition to a new TMS that will prioritize your success and keep your business moving forward, contact 3G today.
