The verdict in three sentences
A custom TMS in Toronto represents 45,000 to 120,000 EUR in 2026, while a licence bills 40-120 EUR per vehicle per month. Custom wins when your route constraints are specific (customer windows, tail-lifts, mixed rounds, subcontracting) and you want tight ERP and telematics integration. Target -18% kilometres and +20% deliveries per day through route optimisation, with timestamped electronic proof of delivery.
Build vs licence: the 2026 comparison
A 25-vehicle fleet on a licence at 80 EUR/vehicle/month costs 24,000 EUR/year, i.e. 120,000 EUR over 5 years excluding options. Custom aligns its cost with your business, not your truck count.
| Criterion | Custom TMS | Per-vehicle licence |
|---|---|---|
| Upfront cost | 45,000-120,000 EUR | 2,000-8,000 EUR (setup) |
| Recurring cost | 12-15%/yr maintenance | 40-120 EUR/vehicle/month |
| Route optimisation | Algorithm on your rules | Standard configurable |
| Proof of delivery (POD) | Custom driver app | Included/optional module |
| ERP/telematics integration | Native | Limited connectors |
| Cost of an added vehicle | 0 EUR | +40-120 EUR/month |
| Time to go live | 4-7 months | 3-8 weeks |
For a growing fleet, custom pays off from ~30 vehicles or as soon as the licence can't handle your route rules (strict time windows, chilled goods, shared rounds).
Where the savings hide: fuel and productivity
Route optimisation acts on three measurable levers. Here are 2026 orders of magnitude seen on regional distribution projects.
| Lever | Before | After TMS | Impact |
|---|---|---|---|
| Km per round | 210 km | 172 km | -18% fuel |
| Deliveries/vehicle/day | 24 | 29 | +20% capacity |
| Planning time | 3 h/day | 25 min/day | -85% office load |
| Delivery disputes | 4.2% | 1.3% | Timestamped POD |
| Fill rate | 71% | 84% | Fewer empty runs |
With diesel at ~1.75 EUR/litre and 28 L/100 km consumption, 38 km saved per round per vehicle across 25 vehicles and 230 days is about 107,000 litres avoided per year, i.e. ~187,000 EUR of fuel.
Mini case study
Nadia, transport director at a food distributor in Toronto (25 vehicles, 3 planners), spends 3 hours a day building routes in a spreadsheet. She invests 82,000 EUR in a custom TMS with optimisation and a driver app. Target: -18% km (fuel saving ~110,000 EUR/year for her fleet), 2 planners redeployed to customer relations, and delivery disputes cut threefold thanks to signed proof of delivery. The combined annual gain exceeds 130,000 EUR, a payback under 8 months.
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FAQ
How much does a custom TMS cost in Toronto in 2026?
Between 45,000 and 120,000 EUR depending on route optimisation, the driver app and integrations. A regional TMS with POD and ERP connection usually lands around 75,000-85,000 EUR.
From how many vehicles is custom justified?
Generally beyond 25-30 vehicles, or earlier if your route constraints are too specific for a standard licence. Below that, a 40-120 EUR/vehicle/month licence stays simpler.
What does route optimisation concretely deliver?
It cuts mileage by 15 to 20% and raises deliveries per vehicle by ~20%, while dividing planning time fivefold. Fuel gains are immediate and measurable from month one.
Is electronic proof of delivery legally reliable?
A timestamped, geolocated POD signed on the driver app is a strong evidentiary element in disputes. It drops delivery challenges, often from 4% to under 1.5%.
Can existing telematics boxes be connected?
Yes, most tracking systems (Verizon Connect, Webfleet, Geotab) expose APIs. Budget 6,000-14,000 EUR of integration depending on the number of feeds to sync.
Let's scope your project. Tell us your fleet size, route constraints and ERP for a right-scoped TMS and an indicative 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.
