TRANSPORTATION PERSPECTIVES: Establishing the Best Long-term Strategy for Your Company Flexible Deployment Options for an Expanding Market The range of sourcing options available today provides great flexibility for companies to meet deployment needs and leverage outsourced IT resources to minimize upfront investments, speed time to benefit and leverage industry-leading technology that might otherwise not be available to them. There are a number of factors that should weigh into the decision about which sourcing option is right for your company. Flexibility is the key to choosing your TMS vendor, and evaluating the breadth and depth of sourcing alternatives is just as important as evaluating the breadth and depth of the functional capabilities. This paper outlines some of the factors that should be considered in evaluating TMS sourcing options and establishing the right long-term strategy for your company. Definitions On-Premise Software is installed and run on computers on the premises of the person or organization using the software. It is generally owned and controlled by the acquiring organization and therefore provides a significant amount of flexibility regarding configuration, modifications, data and integration. Managed Services is an alternative take on the on-premise option where routine database and application maintenance activities are handled remotely by a third party. Hosted TMS is analogous to the onpremise model, with the main difference being that the company doesn t use its own infrastructure, hardware and infrastructure support staff, but, instead, pays to use an outside source. Companies typically elect to host the TMS solution if they have IT infrastructure or staffing constraints, but want to own the TMS application. Software as a Service model is software that s owned, delivered and managed remotely by one or more providers. The provider delivers software based on one set of common code and data definitions that is consumed in a one-to-many model by all contracted customers anytime, on a pay-for-use basis, or as a subscription based on use metrics. 1
Making the Right Decision Operational Maturity A Simple Analysis Our experience suggests that determining whether SaaS is the right solution has less to do with company size and more to do with the maturity or complexity of your overall transportation operation. In other words, a multibillion dollar food manufacturer may find that their transportation operation is actually relatively simple in spite of the fact that they have significant annual revenues. We recommend that our customers consider the operational maturity to determine what deployment option makes the most sense instead of their annual revenue. While a SaaS-based deployment may make sense for a customer just beginning to adopt technology to manage their transportation operation, they may find that over time as their operational and technology needs begin to expand beyond the typical SaaS offering they want the flexibility to move into either a hosted or on-premise deployment alternative. Deployment Considerations A Deeper Analysis While operational maturity is a good place to start when assessing whether SaaS might be right for you, there are actually a number of considerations that affect the success or failure of the deployment strategy you choose. Our experience suggests that determining whether SaaS is the right solution has less to do with company size and more to do with the maturity or complexity of your overall transportation operation. As the SaaS marketplace evolves, some companies have found that SaaS is not quite the panacea it often promises to be. Most notably companies have cited cost, integration and technical limitations as the leading reasons they have rejected SaaS deployment strategies. Manhattan Associates has analyzed the strengths and weaknesses of deployment options that should be considered to help companies make a comprehensive assessment of which deployment strategy is right for them. SaaS This deployment scenario provides lower upfront costs and faster speed to benefit by leveraging an existing implementation that is preconfigured and ready to use. This model eliminates the need for an upfront investment in either a software license or hardware. Installation costs are eliminated because the software is already available. While SaaS provides faster speed to value and lower upfront costs, it also provides less flexibility in terms of configuring and/or customizing the software to the unique needs of your operation. This may or may not be an issue, however, depending on the complexity and requirements of your operation. As discussed above, less mature or complex operations may very well find that SaaS is absolutely adequate for their needs. On-Premise An On-Premise deployment strategy provides the maximum flexibility and control for your company. This deployment strategy implies that the software will be hosted in your IT operation, on your hardware and provides you with unlimited flexibility in terms of configuring and modifying the software to the unique needs of your transportation operation. For companies with complex and or specialized needs this deployment strategy provides the platform for creating a unique and strategic advantage that is tailored to their specific needs. On-Premise deployment strategies 2
generally accommodate the use of a broader and deeper set of functionality. Functionality that may not lend itself to a SaaS model where multiple users are sharing the software can be accommodated in a single instance, single user On-Premise deployment. An On-Premise deployment strategy, however, typically requires a greater upfront investment in terms of both time and money. An upfront investment in the software as well as hardware will be required along with resources to maintain and manage the system across the transportation network. The flexibility that comes along with configuring and customizing your own solution will take more time to implement. On-Premise installations require installing and configuring the software from scratch eliminating the leverage that comes from using a SaaS model where the software is already installed and the hardware is already in place, thus slowing down the speed to benefit. Customers need to take a strategic view when evaluating a potential vendor. As the economy improves and companies start to experience growth again, what seemed to make sense today may not be the right solution in the future. Hosted Single Tenant/Single Instance Manhattan s Hosted Single Tenant/ Single Instance deployment strategy combines the flexibility of the On- Premise option with lower up-front capital expenditures by leveraging the existing SaaS operational environment but provisioning a single instance of our TM software for each individual client. This provides maximum flexibility and control for those companies whose operations require it but provides a more favorable pricing model and or speed to value for those companies who either don t want to incur the significant expense or who don t have the IT capacity to support the project when required. While the upfront costs are lower there will still be costs associated with the initial installation, configuration and potentially customizations that go along with setting up the system. Manhattan Offers All Three Options Manhattan offers all three of the distinct deployment options discussed above, each with its own set of benefits. The flexibility that these three options offer allows us to serve the broad spectrum of IT strategies, along with the complex and diversified needs of the transportation marketplace. In today s marketplace, many vendors identify themselves as either an On-Premise or SaaS vendor. SaaS in particular has become very popular due to the lower cost and faster speed to benefit. As discussed above, however, the deployment strategies scale over time based on operational and economic factors. Customers need to take a strategic view when evaluating a potential vendor. As the economy improves and companies start to experience growth again, what seemed to make sense today may not be the right solution in the future. Companies should choose a vendor with flexible deployment options allowing for major business changes whether those are positive or negative. Scalability to accommodate changing business size and complexity is the key to establishing a long-term relationship with a single vendor who understands your business and can provide the appropriate deployment option for the appropriate business requirements. Manhattan offers a single instance of software tailored to the unique requirements of each deployment environment. Whether you implement 3
via a SaaS strategy or On-Premise, the software is rooted in the same code base with a common user interface, data and workflows. This allows for easy transitions from one environment to the other when the circumstances dictate a change to your deployment strategy. Operational Expertise & Experience Companies should choose a vendor with flexible deployment options allowing for major business changes whether those are positive or negative. Manhattan and CenturyLink have partnered to provide a world-class Tier III SOLI/SOLII SaaS/Hosted environment for our customers. With 99.99% up-time and an experienced team of implementation and IT experts, we have created an environment that enables customers to achieve rapid benefits, leverage deep and broad functionality, and enable carriers quickly and efficiently. Our 15+ years of experience and operational expertise in managing a SaaS/ Hosted environment reduces the risk to clients and ensures a flawless experience. Support within the SaaS/Hosted environment includes: Our team of experts provides client-specific training before each upgrade to enable clients to take full advantage of all new functionality. We provide 24-hour multi-level customer support to ensure that all issues are resolved in a timely and satisfactory manner. We provide test/sandbox environment to clients for application and interface testing two (2) to three (3) months before upgrade. Manhattan Associates provides all the tools you need to reduce costs, reroute around trouble spots, coordinate deliveries precisely and deliver more, faster, for less money. Your business requires a global view of transportation across all modes. Inbound or outbound, from bidding to billing, Manhattan Associates helps you see it all. connects your transportation network from procurement to delivery with the following modules: Transportation Procurement From single lanes to entire networks, manage your bid process entirely online to obtain the right carriers, right modes at the best price. Transportation Planning & Execution Optimally manage all your transportation activities so you can coordinate, redirect and stay on schedule. Deliver superior service to your customers with full visibility and event management capabilities. Carrier Portal or EDI Trading Network Share critical data in real time to keep all your transportation partners working together. Enable communication with suppliers and carriers to request shipments, provide updates and settle financial concerns. Quickly set up EDI connections with transportation carriers using our cloud-based trading network. 4
Fleet Management Manage and optimize all assets of both private and dedicated fleet operations including drivers, tractors and trailers. Audit Payment & Claims Pay for only the services you used at the price you contracted. Identify overcharges, duplicate bills and other errors immediately. Manage both cargo and detention claims with carriers and suppliers. Appointment Scheduling Avoid charge-backs from Hours of Service violations and staff your warehouse appropriately by encouraging carriers to schedule deliveries online. Manhattan Associates provides all the tools you need to reduce costs, reroute around trouble spots, coordinate deliveries precisely and deliver more, faster, for less money. Yard Management Know trailer positions and status instantly. Schedule arrivals by dock and reduce loading and unloading time. Vendor Portal Gives vendors visibility to their orders and shipments through a web interface. As granted by the shipper, vendors may also create and edit purchase orders and orders for processing. Finally, vendors may send the shipper s Advanced Shipping Notices (ASNs). Flexibility is the key to choosing a TMS, and evaluating the breadth and depth of sourcing alternatives is just as important as evaluating the breadth and depth of the functional capabilities. Let us help you. For more information, contact an expert at info@manh.com or +1 (877) 596-9208. About Manhattan Associates, Inc. Manhattan Associates, Inc. brings companies closer to their customers. We design, build and deliver market-leading Supply Chain Commerce solutions that drive top-line growth by converging front-end sales with back-end supply chain execution and efficiency. Our software, platform technology and unmatched experience help our customers around the world adapt to the challenges of the omni-channel marketplace. For more information, please visit www.manh.com Manhattan Associates. All Rights Reserved. manh.com manh.com.mx manh.co.uk manh.com.fr manh.nl manh.com.au manh.cn manh.co.jp 5