Running a successful supply chain operation requires an effective and modern transportation management system (TMS) for inventory management, order management, shipment tracking, and route optimization. But not all TMS systems are created equal — and the choice between a cloud-based or on-premise solution can make a big difference in the long run.
In the past, on-premise TMS solutions were the only option for companies. However, thanks to technological advances surrounding cloud hosting, modern businesses can use a robust cloud transportation management system.
Find out how your company can experience several unique benefits unavailable with on-premise solutions.
Drawbacks of On-Premise Setup for TMS
The original capital cost for an on-premise setup can be expensive, as a company needs to purchase and host the hardware on their premises. Furthermore, traditional hosting environments, such as on-premise solutions, often require costly manual intervention to manage and maintain the system.
Vital resources, including IT time and personnel, are needed to install the server, configure secure access, and run regular security patches. This effort can be costly for a supply chain management team and requires significant time to set up correctly.
Data Storage Costs
Data storage can be particularly costly as well. These costs and the growing complexity of supply chain processes have led many companies to look for alternatives.
On-premise solutions are also limited in terms of scalability and can become inefficient if an unexpected surge in demand occurs. Vertical scaling is limited as additional hardware may be necessary to increase the system’s capacity. If this equipment is not readily available, a company can experience delays in business operations.
Vulnerable to External Threats
Finally, because the system is solely on-site, it’s vulnerable to damage from power outages or natural disasters. The system can also be susceptible to virus and malware attacks due to insecure networks.
Advantages of a Cloud-Based TMS System
Given the above drawbacks, a cloud transportation management system offers numerous advantages over traditional hosting environments.
More Cost Effective and Profitable
Cloud solutions are much more cost-effective, as organizations only pay for the services they need at any given time. As a result, companies have more control over their budgets and can scale up or down as needed.
Although there is a cost to using a cloud-based TMS system, the return on investment is often much higher. These systems allow businesses to reduce the total cost of ownership while boosting the efficiency of their operations. It’s a win-win!
Moreover, cloud-based systems have greater scalability regarding data storage, security, and overall capabilities of the applications. With the ability to quickly and easily scale up or down, companies can respond rapidly to changes in demand while ensuring reliability.
Using the cloud is like having a virtual desktop. As long as you have an Internet connection, you are connected to your business. This setup makes cloud computing the ideal solution for companies that need flexibility and portability, especially those with remote teams or mobile employees.
And since data is stored in the cloud, it’s easy to access and manage your information from anywhere. No more scrambling to transfer files or data when you’re on the go.
Cloud-based TMS software is often more secure than on-premises solutions. While on-premise solutions may be vulnerable to intrusions by anyone accessing the system, cloud-based solutions are protected by secure encryption and authentication protocols.
Moving to the Cloud is a Trend for a Reason
It’s important to know that major ERPs are moving to the cloud, and many will sunset their support of on-premise solutions. In fact, a recent survey of IT executives revealed that 95% of systems will be migrated to the cloud by 2025.
This reality makes it essential for businesses to proactively transition away from traditional hosting environments. By leveraging a cloud TMS now, you’ll be able to easily integrate with the latest technology and keep up with industry trends — and your competition.
CloudLogix: Your Cloud Transportation Management System
CloudLogix provides a comprehensive cloud-based TMS tailored to your business’s unique needs. Our cloud-hosted platform integrates more efficiently than traditional on-premise systems and offers advanced analytics, real-time visibility, and detailed reporting tools.
Cloud-based systems like CloudLogix are also more flexible than traditional options. You can scale workloads up or down and predict your costs, improving your ability to adapt to the rapidly changing environment of supply chain transportation operations.
At CloudLogix, we have been developing cloud solutions for over a decade. We complement current ERP systems such as SAP and other platforms, and we can develop a custom implementation solution best suited for your business.
With a low upfront cost and game-changing flexibility, CloudLogix is the ideal choice for supply chain decision-makers.
Better yet, we’re always here to support you. Our team of experts works closely with our customers to ensure they get the most out of their solutions and maximize results. Our knowledgeable professionals have real-world supply chain experience and are passionate about helping companies succeed.
Let CloudLogix take care of all your logistics needs and start experiencing the advantages of our cloud-based TMS today. Contact us to schedule a demo of CloudLogix to see first-hand why a cloud transportation management system is the superior option to address your needs.