Transportation, Freight & Distribution worked example

TMS ROI with tms implementation cost of 362,500 $: a worked example

What does the result look like when tms implementation cost reaches 362,500 $? The full calculation is worked below with real intermediate numbers. Use it when justifying TMS investment, freight audit automation, routing guide controls, or carrier tendering improvements.

The inputs for this scenario

  • TMS implementation cost: 362,500 $ (raised for this scenario; the documented default is 145,000)
  • Annual freight savings: 98,000 $ / yr (unchanged)
  • Annual TMS support cost: 28,000 $ / yr (unchanged)

Working through the calculation

  • Applying the documented formula (Net annual savings = annual freight savings - annual tms support cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 5.18 years for years to payback, the number this scenario is built around.
  • At this operating point the engine returns 70,000 $ / yr for net annual savings.
  • At this operating point the engine returns 362,500 $ for tms implementation cost.
  • At this operating point the engine returns -12,500 $ for five-year net savings.

How this compares with the baseline

  • Against the tool's baseline example, where tms implementation cost sits at 145,000 $ and the headline result is 2.07 years, this scenario comes in 150% above the baseline at 5.18 years.
  • A figure at this level is achievable when tms implementation cost is genuinely sustained, not just peaked for a shift. It is undiscounted and assumes steady freight volume — it does not model seasonal volume swings, fuel-surcharge volatility, or the onboarding period before optimization savings ramp up.

Results at a glance

  • Years to payback: 5.18 years (headline result)
  • Net annual savings: 70,000 $ / yr
  • TMS implementation cost: 362,500 $
  • Five-year net savings: -12,500 $

Run it with your numbers

  • Every input above is editable in the live TMS ROI calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.