The verdict in three sentences
A SaaS TMS in London in 2026 costs between EUR 40-120 per user/month or EUR 3-10 per shipment, ideal for starting fast with no heavy investment. A custom TMS means EUR 45,000-95,000 and a 5-8 month project, but fits your routes, constraints and billing exactly. Custom becomes profitable beyond 200-300 transport orders per day or when your business rules break every off-the-shelf package.
SaaS or custom: what you actually pay
A SaaS TMS bills for usage: per-user subscription or per-shipment cost, plus initial setup. Custom is a one-off investment amortised over 4-6 years, with no per-shipment cost that explodes with volume. So the real question is not "which is cheaper" but "at what volume does the per-shipment cost exceed the amortisation of a dedicated build". A SaaS vendor stays unbeatable for testing a market or absorbing a seasonal peak; custom takes the lead when your routes, dock constraints and billing rules become competitive advantages you do not want to share with a generic package. Here are 2026 orders of magnitude for a mid-sized London logistics SME.
| Item | SaaS TMS | Custom TMS |
|---|---|---|
| Setup | EUR 3,000 - 12,000 | EUR 45,000 - 95,000 |
| Recurring cost | EUR 40 - 120/user/month | EUR 600 - 1,400/month (hosting + maintenance) |
| Cost per shipment | EUR 3 - 10 | included |
| Time to launch | 4 - 10 weeks | 5 - 8 months |
| Driver app | option EUR 8 - 20/month | included |
| Rule customisation | limited | total |
| Code ownership | no | yes |
The features that make money
A TMS is judged not by menu count but by measurable operational gains. On a 25-vehicle fleet in London, route optimisation and paperless orders weigh heavily on margin.
| Feature | Typical 2026 gain | Impact on a 25-truck fleet |
|---|---|---|
| Route optimisation | -12% empty miles | ~EUR 55,000/year fuel |
| Proof of delivery (e-POD) | -80% billing disputes | ~EUR 15,000/year |
| Real-time tracking | +8 pts service level | customer retention |
| Automatic billing | -3 days to invoice | cash flow |
| Driver app | -20 min/day/driver | ~EUR 40,000/year |
| Fuel telematics | -6% consumption | ~EUR 28,000/year |
Mini case study
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Eric, logistics director of a food distributor in London, runs 25 trucks and 180 transport orders/day. On SaaS at EUR 6/shipment, he would pay roughly 180 × 6 × 22 days = EUR 23,760/month, i.e. EUR 285,000/year. A custom TMS at EUR 72,000 plus EUR 1,000/month hosting and maintenance comes to EUR 84,000 the first year, then EUR 12,000/year. From year one, savings exceed EUR 200,000, before counting -12% empty miles (~EUR 55,000 fuel). Custom clearly wins here once volume is stable and high.
FAQ
What minimum budget for a first TMS in London in 2026? Expect EUR 3,000-12,000 setup on SaaS, or a custom base around EUR 45,000 for routes + orders + e-POD. Below that, you only get an improved spreadsheet.
Does per-shipment pricing make SaaS a trap? Yes above a certain volume: at EUR 6/shipment and 180 shipments/day, the bill reaches ~EUR 285,000/year, far more than an amortised custom build. The switch threshold is often around 200-300 orders/day.
How long to deploy a driver app? Expect 4-8 weeks for an e-POD app (photo, signature, scan) connected to the TMS, cutting -80% billing disputes from the first quarter.
Can the TMS connect to my ERP and mobile payments? Yes: ERP integration (orders, billing) takes 3-6 weeks and costs EUR 8,000-20,000. Mobile payments can be added for West African flows.
What ROI should I realistically expect? On a 25-truck fleet, cumulative gains (fuel, disputes, driver productivity) often exceed EUR 130,000/year, for a custom investment of EUR 72,000 repaid in under a year.
Let's scope your project. Tell us your order volume, fleet size and billing constraints, and we'll price SaaS vs custom side by side. 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.
