Software as a Service (SaaS) solutions have been something that organizations have been turning to for a while, to manage various IT and operational functions in their organization. In a recent Logistics Management article, Software as a Service (SaaS): The versatile supply chain option, Adrian Gonzalez of ARC Advisory Group discusses some of the benefits of using SaaS.
Boasting shorter implementation times than “purchase and install” options, and less upfront investment, SaaS solutions are particularly useful for shippers that are in the process of “upgrading existing solutions, or in need of new solutions.”
...According to Gonzalez, SaaS appeals to companies of all sizes, and across most industries. He also discussed pricing options, noting that they range from upfront license fees to payments-per-transaction. Most common, he says, is a one-year to three-year subscription model with monthly payments.
In the article, Gonzalez names Transportation Management Systems (TMS) and Global Trade Management (GTM) systemsas the two software packages that are most applicable for SaaS. Using a Transportation Management solution can help shippers manage global airfreight and sea freight contracts, optimize booking decisions by finding the best combination of cost and service, and automate the freight audit process to identify and eliminate invoice overcharges. Logistics providers can see benefits as well - TMS can help them manage buy-side costs, automate quote and proposal generation, comply with tariff filing requirements, and improve sales effectiveness.
Some other GTM solutions, such as Supply Chain Visibility and Trade Portals, address the challenge managing multiple trading partners, all with different information systems and data definitions, and information that can flow at unpredictable times.
