TMS Selection for Retail/ CPG Company - A mid-sized CPG company for home goods was manually managing $24M in transportation spend. New leadership envisioned the need for and potential benefits of implementing a transportation management system (TMS) to handle 20k shipments from 2 DCs annually.

Baseline analysis was completed to characterize, and measure inbound and outbound shipments by transportation mode, followed by an operations process review to understand procedures and customer service requirements, as well as comparison to leading practices. A formal Request for Proposal (RFP) was developed and distributed to 10 market-leading TMS vendors. Requirements and capabilities were compared in a series of written responses and interviews, as well as initial pricing proposals.

The slate of vendors was trimmed based on weighted scoring and finalists were chosen. After contract negotiations, the bid was awarded. Cost savings from automated route planning, mode conversion, and carrier selection will allow the company to trim its transportation budget by $3M, which represents a 6x ROI on the TMS investment in the first year.