The verdict in three sentences
Below 150 routes per week, a SaaS TMS stays the rational pick: $500 to $2,500/month, fast onboarding, no technical risk. Beyond that, when per-seat licensing balloons and your planning rules don't fit the standard, a custom build at $55,000-130,000 becomes an asset you own. The real trade-off isn't the entry price but the 5-year total cost and the saving on empty miles.
SaaS vs custom: what you actually buy
SaaS bills a recurring subscription, often per user or per route volume, plus an initial setup. Custom is a capital investment: you pay for development once, then a monthly maintenance retainer far lower than a multi-user license.
| Criterion | SaaS TMS | Custom TMS |
|---|---|---|
| Initial setup | $5,000 - 20,000 | $55,000 - 130,000 |
| Recurring cost | $500 - 2,500/month | Retainer $800 - 1,800/month |
| Per-user billing | Yes, growing | No |
| Planning rules | Standard | 100% your process |
| Client-specific EDI | Vendor-dependent | Unlimited |
| Code ownership | No | Yes |
| Go-live time | 2 - 6 weeks | 14 - 24 weeks |
The typical scope of a custom TMS covers route planning (multi-criteria optimization), real-time fleet tracking via telematics, client EDI (orders, statuses, proof of delivery), and billing integration with your accounting.
Volumes, break-even and operational gains
The tipping point mostly depends on route and user count. Here is a 2026 order-of-magnitude annual cost comparison.
| Weekly volume | SaaS (license + setup spread) | Custom (retainer + 4-yr amort.) | Verdict |
|---|---|---|---|
| 50 routes | ~$9,000/yr | ~$28,000/yr | SaaS |
| 150 routes | ~$21,000/yr | ~$31,000/yr | SaaS |
| 300 routes | ~$34,000/yr | ~$34,000/yr | Break-even |
| 500 routes | ~$48,000/yr | ~$36,000/yr | Custom |
| 800 routes | ~$72,000/yr | ~$40,000/yr | Custom |
The gains aren't only financial. A planning engine tuned to your real constraints (time windows, tail lifts, tonnage) delivers in practice -12% empty miles and 10 hours per week saved per dispatcher on route building.
Mini case study
Marc, operations director of a 3PL in Miami, runs 420 routes a week with 6 dispatchers. His SaaS TMS costs $2,100/month plus 6 seats at $180, about $38,000/year. A custom TMS at $95,000 + $1,400/month retainer, amortized over 4 years, comes to ~$41,000/year in the first period, then ~$17,000/year after. Adding -12% empty miles on a fleet driving 750,000 mi/year at $0.50/mi, fuel savings reach ~$45,000/year. Custom pulls clearly ahead from year 2.
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FAQ
How long to deliver a custom TMS?
Expect 14 to 24 weeks depending on scope. A planning + fleet-tracking core ships in 14-16 weeks; multi-client EDI and telematics add 4 to 8 weeks.
Can we keep our current billing software?
Yes. Custom integrates via API or EDI with your accounting (Sage, NetSuite) and your telematics boxes. That's precisely a weak spot of generic SaaS.
What's the real risk of custom?
Project governance. A vague spec derails timelines. We control it with 2-week sprints and continuous acceptance on your real routes.
Is SaaS still right for a small carrier?
Absolutely. Below 150 routes/week, SaaS is cheaper and avoids all technical risk. Custom is justified by volume and rule specificity.
What does the retainer cover?
Fixes, regulatory updates, new client connectors, monitoring. It's contractually included at $800-1,800/month depending on scope and service level.
Let's scope your project. Tell us your route volume, your client EDI connectors and your current telematics: we'll price the core and the retainer. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
