The verdict in three sentences
In London in 2026, a SaaS TMS starts at EUR 30-120 per user per month, while a custom build runs between EUR 60,000 and 160,000, depending on scope. SaaS wins when your flows are standard; custom becomes essential once route optimisation and ERP integration turn into competitive advantages. Budget 4 to 8 months and a ROI driven by -12% mileage and -15% fuel cost.
SaaS or custom: the real trade-off
The decision is not about the sticker price but about total cost over three years, integration depth, and the ability to model your business constraints (delivery windows, multi-depot, backhauls). A subscription looks light until user counts and premium modules add up.
| Criterion | SaaS TMS | Custom TMS |
|---|---|---|
| Entry ticket | EUR 30-120/user/month | EUR 60,000-160,000 |
| Go-live | 4-10 weeks | 4-8 months |
| Route optimisation | Standard, configurable | Your exact constraints |
| ERP/WMS integration | Limited connectors | Native, unlimited |
| 3-year cost (12 users) | ~EUR 60,000-90,000 | EUR 80,000-190,000 |
| Code ownership | No | Yes |
| Scalability | Vendor-capped | Total |
Modules and 2026 budgets
A TMS is built in blocks. The core (transport orders, planning, tracking) is the base; optimisation and telematics modules deliver the fastest ROI.
| Module | 2026 range (EUR) | Main gain |
|---|---|---|
| TMS core (orders, planning, tracking) | 35,000-70,000 | Centralisation |
| Route optimisation | +12,000-35,000 | -12% mileage |
| Telematics / fleet tracking | +8,000-20,000 | -15% fuel |
| Customer portal & live tracking | +10,000-25,000 | Satisfaction |
| Driver app (POD, disputes) | +12,000-30,000 | Paperless |
| Reporting & CO2 dashboards | +6,000-15,000 | CSRD compliance |
Mini case study
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Mark, logistics director of a distribution SME in London (18 drivers, 42 routes/day), drives 1,350,000 km/year for a EUR 210,000 fuel budget. He invests EUR 95,000 in a custom TMS with route optimisation and telematics. Target: -12% mileage (162,000 km avoided) and -15% fuel (~EUR 31,500 saved/year). Adding reduced manual planning hours (~EUR 14,000/year), annual savings reach ~EUR 45,500, a payback of around 25 months, maintenance included.
FAQ
What is the minimum budget to start a custom TMS in London? Expect at least EUR 60,000 for a functional core with tracking and planning. Below that, a SaaS at EUR 30-120/user/month is more sensible.
How long does deployment take? A custom project takes 4 to 8 months across scoping, development and data migration; SaaS goes live in 4 to 10 weeks.
Is the ROI realistic? Yes: gains of -12% mileage and -15% fuel are well documented once route optimisation is correctly tuned to your real constraints.
What maintenance cost should I plan? Support typically costs 12 to 18% per year of the build price, i.e. EUR 7,200 to 28,800/year for a EUR 60,000-160,000 project.
Can the TMS connect to my existing ERP? Yes, native integration is precisely the strength of custom builds; budget EUR 8,000 to 22,000 for ERP/WMS connectors.
Let's scope your project. Tell us your fleet size, route volumes and current ERP, and we will price a TMS that fits your London budget. 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.
