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Digital transformation is one of the key trends across enterprises and domains in the current times. Especially after the COVID-19 pandemic, the importance of digitization and automation has come to the fore even more. Nearly 9 in 10 correspondents in a McKinsey survey think that their business model needs to change (and focus more on digital) or has already changed. When it comes to logistics automation, the trend is similar. Delivery management and overall logistics management needed to undergo a rapid digital transformation for brands to stay relevant and reach their customers.
When it comes to brands going for an ERP or a TMS, the decision is not easy. Such implementations require a lot of thinking through because it is not something one can change fast. Moreover, seeing any results also takes time. This means that such systems should be integrated only after thorough due diligence and once all your boxes are checked.
Now, for any brand to undergo a digital transformation by implementing any of the ERP or a TMS, there is usually an RFP process. Large brands chart out their requirements and invite RFPs from prospective vendors. This RFP process is usually initiated by a consulting company like KPMG, Deloitte, or E&Y that a brand/enterprise partners with. The consulting companies come in to study current systems, do a gap analysis and put a process in place to migrate to a new TMS or choose one of the vendors to implement the solution. The entire process takes about 3 to 6 months and is also cost-intensive. This cost is borne by the enterprise/SME looking to digitally transform its operations. Also, there is an implementation cost on top of the ERP TMS software cost, maintenance, and Training.
In this entire process, the results are great because of the rigor of the process for an SME (Small & Medium Enterprise); it is rarely feasible to go through such a time and cost-intensive exercise. And this is where they miss out. While an enterprise TMS brings in lots of benefits for a large organization, it does not have a lighter solution for SMEs. Most SMEs don’t have complex org structures to support multiple countries or currencies. And out of the box, an Enterprise TMS comes with complex org structures. And this becomes overly complicated for an SME. This is the main reason SMEs delay the transition to digitalization and are happy with paper and Excel. But this really undermines their chances of growth!
In such a scenario, when an SME wants to implement a TMS and reap the benefits of digital transformation, there is hardly anything suitable for an operation of their size. And this is the gap that a SaaS platform like ShipmentX fills. Advantages of ShipmentX:
In the current age, digital transformation is a must to stay relevant. And every brand knows this. But for SMEs, resources can be a challenge. Alongside, they also need to move fast and in a cost-effective manner. For this, a cloud-based solution like ShipmentX is the perfect solution to test the waters and reap the benefits of an enterprise-level TMS within the budgets of an SME. We’ve been working with brands across North America and would love to take you through a product demo; sign up here.