A few weeks ago, I wrote about the build vs. buy decision that many third party logistics providers (3PLs) face when it comes to IT solutions, particularly when off-the-shelf applications don’t meet all of their functional requirements (see “The IT Dilemma for 3PLs”). That posting generated a lot of comments, not only on Logistics Viewpoints but also on LinkedIn.

Kyle Krug, Director Client Solutions, TMSi Logistics

In this Viewpoints on the Air podcast, I explore this topic a bit further with Kyle Krug, Director of Client Solutions at TMSi Logistics. Kyle led the TMS selection process at Griffin Global Logistics (which TMSi acquired earlier this year) and he discusses why “flexibility and customization” were important capabilities the company looked for in a TMS. Also participating in the conversation is Geoff Comrie, CEO at Transite, who provides his perspective on this topic as a TMS provider.

One of my key takeaways came at the end of our conversation, when I asked Kyle and Geoff to provide our listeners with words of advice or recommendations. Here is part of what Kyle had to say:

The first thing we learned from experience is that TMS from a shipper’s standpoint and TMS from a 3PL’s standpoint are very different, so if you are a 3PL looking for a TMS you really need to make sure the [solution] is able to service the extra layers of needs [you have as a 3PL]…That seems kind of a simple thing, but it’s really not, there’s a lot to it, so I would really make sure you take that angle.

Geoff added:

If you’re about to make an investment in a TMS, you’re probably looking to make a long-term investment. I would look several years down the road and try to understand what [your] strategic needs are versus tactical needs…If you are a 3PL and you’re not looking at how a TMS is going to impact sales or how you will use it to drive sales, then you missed a big step [in the evaluation process] and need to go back and examine that.

For more details on these recommendations and other insights, listen to my conversation with Kyle and Geoff below. Then post a comment and share your viewpoint on this topic.

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