TMS program vs. Excel: When to Switch to Specialized Software

TMS program vs. Excel. Here we’ll figure out when it’s time to switch to specialized software. So…

In short: Excel helps out at the start, but as logistics grows, it begins to slow down the business: formula errors, lost versions, manual approvals, zero transparency on deadlines and expenses. Below are clear signs that it’s time to switch to a TMS, a selection checklist, and a neat, painless migration plan.

Why Excel is starting to get in the way

• Version chaos. Multiple “total_final_last.xlsx” files; It’s unclear who’s in charge, and the flight status is lost.
• Manual errors. Misdirected formulas and VLOOKUPs lead to incorrect cost estimates, incorrect rates, and SLA failures.
• No live status. Excel doesn’t know about ETAs, traffic jams, loading/unloading times, PODs, or photo evidence of delivery.
• Approvals by email. Rates and flights are confirmed via email and chat—a slow and opaque process.
• Retroactive reports. KPIs are calculated once a week, and decisions are made late.

When Excel is still OK

If you have 1-2 drivers, up to a dozen flights per week, and fixed destinations, Excel can be used as a “sandbox.” But even at this stage, it’s worth establishing a data structure and naming conventions to make the migration easier.

Symptoms that it’s time for a TMS

1. Flights > 20–30 per day or multiple types of shipments (delivery, inter-warehouse, distribution).
2. Multiple contractors and regular bid tenders/auctions.
3. Time is critical: tight delivery windows, late penalties, strict SLAs.
4. Online status is required (GPS/telematics, ETA, customer notifications).
5. Paper document flow “eats” hours, and closing documents get lost.
6. Costs rise, and there is no transparency about where exactly you are “losing money.”

What does a TMS offer compared to Excel?

• Planning and routing: Trip creation, automatic carrier selection, time/cost optimization.
• Tracking and ETA: online statuses, geolocation, notifications, predictive delays.
• Driver mobile app: tasks, tracks, photo-POD, comments, offline mode.
• Rating and calculations: rate templates, additional services, automatic cost calculation.
• Documents and EDI: electronic waybills, approval statuses, unified storage.
• KPIs and reports: On-Time Delivery, shipping costs, fleet utilisation, carrier comparative analysis.
• Integrations: ERP/CRM/WMS, trading platforms, telematics, Mail gateways.

Quick checklist: Excel vs. TMS

How to understand the ROI from switching to TMS

Take the last ones 2-3 months and calculate:

• Manual work hours of dispatchers/back office (scheduling, approvals, summaries).
• Fines and expenses due to delays/errors.
• Cost of data errors (incorrect fare, forgotten extra services, “extra” mileage).
• SLA conversion before and after the TMS pilot.

Even saving 10-15 minutes per flight with 30 flights per day equates to 5-7.5 hours of operational time daily. Multiply by the rate and you get a monthly savings reserve.

Where to conduct the pilot

It’s safest to start with a single category of flights (e.g., regional distribution) and a limited number of contractors. During the pilot phase, it’s more important to organize your reference books, statuses, and SLAs than to automate everything at once. TMS software is suitable for self-study — see which modules and reports cover your current pain points.

Migration plan from Excel to TMS in 30–45 days

1. Data inventory. Lists of contractors, warehouses/locations, rates, vehicle types, additional services.
2. Unified statuses and SLAs. Define the trip lifecycle (created → assigned → in transit → delivered → Closed).
3. Pilot on one stream. Up to 2 weeks. Clear success criteria (planning time, % on-time, error rate).
4. Training and roles. Dispatcher, supervisor, accounting/document management, contractors.
5. Integrations. Minimum requirements: downloading orders from ERP and returning statuses/expenses.
6. Expansion. Connect new streams/regions, telematics, electronic document management, mobile apps.

Typical objections and how to handle them

• “We’re doing fine as is.” Compare planning time figures and % lateness for the past month—the picture will become clear.
• “It’s difficult and time-consuming to implement.” A pilot on one stream will take 2–4 weeks; the rest can be scaled up. templates.
• “Expensive.” Calculate the hours spent by employees and fines—a TMS often pays for itself in 1–2 months.
• “Team resistance.” Include line users in the pilot, and make the training process part of working hours.

How to choose the right TMS for yourself: 12 criteria

1. Scheduling and automatic assignment of carriers.
2. Routing and delivery window restrictions.
3. Tracking, ETA, notifications.
4. Driver mobile app (POD, photos, comments, offline).
5. Flexible pricing and Additional services.
6. Document management (including electronic).
7. KPIs and SLA/cost dashboards.
8. Integrations with ERP/CRM/WMS and telematics.
9. Access rights and action auditing.
10. Performance as flights and users grow.
11. Training, documentation, support.
12. Transparent cost of ownership (licenses, implementation, maintenance).

Excel is a good starting point, but as the number of flights, participants, and deadline requirements increases, spreadsheets become a bottleneck. A TMS addresses critical risks – from planning and tracking to documents and KPIs—and gives businesses transparency and predictability. Start with a pilot project and compare the numbers—the solution will become clear.