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Unlocking True Visibility: TMS Analytics and the Real Cost-to-Serve in Omnichannel Logistics

By Team Omniful
Published: 2 June 2025Updated: 2 June 2025
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Unlocking True Visibility: TMS Analytics and the Real Cost-to-Serve in Omnichannel Logistics

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      Speedy Takeaways: Quick View for Strategic Movers

      • Cost-to-serve (CTS) analytics reveals hidden per-order logistics costs.
      • Transportation Management System (TMS) helps isolate per-channel shipping costs.
      • Enables profitable pricing strategies across eCommerce, retail, and marketplaces.
      • Tracks margins in real-time with hyperlocal and cross-border delivery insights.
      • Supports decision-making with automated reports, alerts, and dashboards.
      • Integrated TMS connects to Order Management and Inventory Systems.
      • Optimises logistics spend by identifying underperforming carriers or zones.
      • Critical for fast-scaling MENA brands in retail, 3PL, and omnichannel commerce.

      Introduction: The Invisible Cost War in MENA Logistics

      In today's omnichannel battlefield, margins are under threat. While growth across eCommerce, retail, and third-party fulfilment booms across the MENA region, logistics costs are quietly eroding profit.

      A major culprit? The lack of per-order visibility into transportation cost-to-serve (CTS). Businesses often see top-line revenue while missing what’s leaking through operational cracks at the bottom.

      This is where advanced Transportation Management Systems (TMS) with real-time analytics step in. They transform logistics from a cost centre into a profit intelligence engine—tracking shipping cost per order, per route, per hub, and per channel.

      This blog explores how a modern TMS enables MENA-based brands, retailers, and logistics providers to quantify margins accurately, reduce waste, and boost profitability.

      The Shift from Volume to Value in Delivery Operations

      Traditional TMS platforms focused on booking and dispatch. But this is no longer enough. As delivery models like hyperlocal, cross-border, and multi-node fulfilment gain ground, understanding actual cost-to-serve per order is mission-critical.

      What businesses need now is:

      • A TMS system that connects seamlessly with sales channels, OMS, WMS, and carriers.
      • Visibility into delivery performance and margin erosion by geography, brand, or customer type.
      • Real-time reporting that moves decision-making from reactive to predictive.

      In the GCC, where fuel subsidies fluctuate and last-mile efficiency varies drastically by city, not knowing your CTS can destroy margin silently.

      Breaking Down Cost-to-Serve by Order and Channel

      A TMS with built-in analytics helps you calculate CTS by layering several operational cost elements:

      Shipping Costs

      This includes last-mile charges, carrier fees, and returns. In integrated TMS platforms, these values are pulled directly from connected carriers like Aramex, Naqel, or Omniful's Omniship.

      Handling & Fulfilment

      Costs from the WMS such as picking, packing, and sorting operations. With Warehouse Management integration, this becomes traceable per SKU and zone.

      Delivery Distance

      Long-haul vs hyperlocal deliveries can vary greatly. Using route optimisation and geofencing, TMS calculates trip-level cost variation across delivery zones.

      Failed Deliveries

      Costs linked to return logistics, reverse pickup, and customer re-engagement—especially relevant for COD-heavy markets like Saudi Arabia and Egypt.

      Channel-Level Profitability

      Whether the order came from a direct site, Point of Sale, or third-party marketplace (Amazon, Noon, or Zid), the TMS attributes revenue vs shipping cost to show true margin by channel.

      Real-Time TMS Analytics: Features Driving ROI

      Modern TMS platforms, such as Omniful’s AI-powered engine, go beyond basic tracking. Key analytics capabilities that influence cost-to-serve include:

      • Route Efficiency Monitoring: Automatically compares planned vs actual driver routes, identifying cost leakage from deviations.

      • Capacity and Load Analysis: Monitors under-utilisation of fleet resources with alerts for empty miles or inefficient packing.

      • Trip Clustering Logic: Combines deliveries going to similar zones to reduce per-trip cost—essential for high-density areas like Riyadh and Jeddah.

      • Predictive Alerts: Notifies teams about shipments with unusual cost-to-serve or delay risk—before SLA breaches.

      • Cash Ledger for COD: Tracks cash collected per delivery, helping audit margins in COD-dominant regions.

      • Billing & Cost Attribution: Through integrated TMS Billing, businesses can associate costs with fulfilment centres, drivers, SKUs, and even packaging types.

      Business Use Cases from the MENA Region

      Saudi D2C Fragrance Brand

      A Riyadh-based retailer selling via both physical stores and online marketplaces was unaware of the shipping cost differences. After enabling TMS analytics, they found:

      • 28% higher cost per order on marketplace channels.
      • 18% higher returns rate from remote governorates.

      They rerouted low-margin orders to pick-up points, reducing delivery costs by 15% and boosting order-level profitability.

      UAE-Based 3PL Fulfilment Centre

      Managing 40+ sellers and 100,000 monthly deliveries, the 3PL needed per-seller cost transparency.

      By integrating Omniful’s Transportation Management System, they enabled:

      • Per-client margin tracking.
      • Smart assignment of delivery providers based on cheapest, fastest, or SLA-compliant options.
      • Daily performance reports showing cost variances and anomalies.

      As a result, they improved margins by 22% in three months.

      Building a Cost Intelligence Framework with TMS

      Step 1: Connect All Sales and Fulfilment Sources

      Your OMS, WMS, and shipping gateway should be integrated with your TMS to pull unified data.

      Step 2: Define Metrics for CTS

      Examples include:

      • Cost per delivery attempt
      • Carrier success rate
      • Margin per order
      • Route profitability

      Step 3: Automate Reporting and Alerts

      TMS dashboards should update in real-time. Configure alerts for:

      • Orders exceeding average cost
      • Drivers with frequent route deviations
      • Delayed COD reconciliation

      Step 4: Feed Insights into Operations

      Tweak order routing, driver allocation, or pricing strategies using insights from analytics.

      Why It Matters More Than Ever in MENA

      The MENA logistics landscape is evolving fast:

      • Saudi Arabia is investing heavily in logistics through Vision 2030.
      • UAE has emerged as a global fulfilment hub, with growing cross-border shipments.
      • Egypt and Jordan are expanding eCommerce rapidly but face high last-mile costs due to infrastructure gaps.

      In this context, knowing your true cost-to-serve per order isn’t optional. It’s the difference between scaling profitably or drowning in logistics loss.

      Final Thoughts: Logistics as a Profit Engine

      TMS analytics for cost-to-serve isn’t just a reporting tool—it’s a strategic weapon. With real-time visibility, you empower teams to act fast, optimise spend, and recover margin that was previously invisible.

      Whether you’re running a dark-store model, cross-border shipping, or multi-brand fulfilment in MENA, a connected TMS turns operational chaos into cost clarity.

      Ready to stop guessing and start measuring?

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      Frequently Asked Questions

      How does TMS analytics differ from OMS analytics?
      While Order Management Systems track order flows and statuses, TMS analytics focuses on the transportation layer—distance, cost, returns, carrier performance, and route optimisation.

      Can I track cost-to-serve for hyperlocal delivery?
      Yes, modern TMS platforms support Hyperlocal Delivery with trip-level cost visibility, live driver tracking, and real-time updates.

      Is this suitable for 3PL operators managing multiple clients?
      Absolutely. With features like client-specific billing, custom dashboards, and cost attribution by seller, Omniful’s TMS is built for 3PL scalability.

      Does the TMS integrate with all shipping carriers in MENA?
      Yes, Omniful supports over 100 Shipping Providers, offering flexibility to bring your own contract or use pre-negotiated rates.

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