Do You Need to Invest So Heavily in Your Yard Management System?
Have you ever felt like you are getting less than what you paid for in a service or product? Yard Management Systems are the way to go when ensuring your yard operations are executed the way it should. However, there are times when investing in a YMS may become too expensive without even realizing due to choosing a ‘Big Name’ brand or provider. Let’s go over the most important piece to this puzzle: you do not need to invest so heavily in a yard management system.
Should You Invest Heavily in Yard Management Software?
The simple answer to this question is no, you do not need to invest money so heavily in a yard management system. However, the answer is also yes, because when you invest your time, relentless dedication, and effort into fully understanding your YMS, then the investment will be worth it in the long run. When you invest your time and money into a new service, it is important to ensure that you take the time into fully learning, adapting, and applying the yard management system into your daily yard operations. There is only way to know if the investment was worth it, and that is putting everything you have into it to see its fullest potential.
How Much You Should Invest in Yard Management Software
When you are thinking about a yard management system to invest in, think about it two ways: time and money. When thinking about your return on investment (ROI), a yard management system can reduce up to 20 to 30% in yard driver and truck costs, improve trailer utilization by 10 to 15%, and increase warehouse throughput by 12.5%, on average. If you have a standard size operation between 1 to 5 yard hostlers per shift at around 100 dock doors or less, YMS installation may take 4 weeks or less. If you choose to integrate your YMS with another software solution such as WMS, TMS, or ERP, it could add up to 2 to 3 weeks on the total installation. If you get to an 8 week or more installation period that includes multiple weeks of vendor onsite resource expenses. Our team sees this on more occurrences than we can count, where the implementation price tag, with the added onsite professional service, exceeds $50,000. Your typical top-of-the-line system will cost around $10,000 to setup, within 1 week to install. Your average monthly yard management fee should lay between $1,500 to $3,000. If you are finding other providers who are charging 2x, 3x, or even 4x the average cost, then you might want to look into why their prices are so much higher and what the differentiating factors are.
What Happens When You Overinvest in a YMS that Underperforms?
It never feels good when you overinvest in a product that underperforms. You want your money to go into something that works, and that works well. Since a great deal of money has gone into the YMS you invested in, the only option is to now do whatever means necessary to make it work. Remember this: Even if the website claims that they are the #1 provider, it doesn’t mean that they would deliver on those promises. Unfortunately, self-promotion or self-proclaimed accolades are things of the past, and it is time to look to the future. Even after all the money and time that has already been invested into the YMS you purchased, sometimes it is better to walk away rather than wasting more time and money on something that is not going to do what you require of it.
What if you signed into a multiple year contract? It is always best to read the fine print to see what the purchase entails. For example, if there are any weary large penalties to terminate the contract or a provider that ‘locks’ you in. If a provider is confident in their product, they would not try to lock you in or hold you accountable to large penalties if you end up not liking the result.
Overpriced YMS Providers Often Overpromise and Underdeliver
As stated previously, it is never ideal to invest your hard-earned money and time into a YMS that does not do what you wanted. In this growing industry, there are multiple providers who feel that due to their name or reputation, they have the freedom to rack up prices for their yard management software. When you see a hefty price tag, in addition to other small (but add up) start-up and monthly fees, it may not always be worth the risk. Here is a word of advice: do not do business with these companies that seem to only take money from you and not give any value in return! Always seek a provider who will step in as your partner and ensure that you are happy with the product they serve. Once trust is established, you will feel confident you chose the right fit for your needs.
Always put the time and energy into researching every industry provider and compare pricing, reviews, descriptions, and ‘promises’ they give you. Find out what really comes with the large expense you are about to throw down on the table. It is recommended to speak with at least 10 references to hear about their experiences and see what the ongoing maintenance has been like. How was their support? Were there any unexpected performance issues? Did this provider treat their client as a partner rather than just another number to send an invoice to? These questions are critical.
An Affordable Yard Management Software That Works for You
YardView is recognized as being the best-of-breed when it comes to delivering top-of-the-line yard management software solutions. Our team has one priority in mind, and that is figuring out how to make your yard operations more productive and cost efficient. From being the market leading expert for more than 20 years, YardView has delivered on their promise to offer an affordable solution with cutting edge customer care and ongoing support in a growing industry. By solving your yard’s complex problems without breaking the bank, our team has fostered decades-long partnerships with customers who push us to improve our processes and continue the great work we provide. Just a little more for you to take home:
- We have successfully solved the industry’s biggest challenges including automating manual tasks, establishing real-time visibility into yard inventory, assets, and equipment.
- We produce faster, more efficient throughput with a higher level of accuracy at the yard gate.
- We deliver fast visibility to availability at the docks by offering monitor status and dwell.
- Our YMS easily integrates with other key systems including WMS, TMS, ERP, etc.