A freight software quote rarely shows the complete cost of using the system. Licenses may be only one part of the budget. Transaction fees, integrations, data migration, training, internal administration and contract exit terms can change the three-year total.
Use the freight software total cost of ownership worksheet to put up to three vendor proposals on the same cost basis. Enter your own prices and volumes; the worksheet contains no assumed vendor prices.
What Is Freight Software Total Cost Of Ownership?
Freight software total cost of ownership (TCO) is the sum of the costs required to acquire, implement, operate and eventually transition away from a system over a defined period.
For this worksheet, three-year base TCO equals:
One-time costs + Year 1 recurring and usage costs + Year 2 recurring and usage costs + Year 3 recurring and usage costs + applicable exit costs
A contingency reserve is shown separately as a budget allowance. It is not a supplier charge or part of base TCO.
Download The Freight Software Budget Worksheet
Download the three-year freight software TCO worksheet
The workbook includes shared workload assumptions, separate cost sheets for three options, a comparison summary and questions to resolve with each vendor. Its shipment and user counts are illustrative planning inputs. Replace them with your forecast.
For every cost line, enter a quoted amount, or 0 when the vendor confirms that the item does not apply. Leave the price blank when it is unknown. The summary flags missing prices; treat a total with missing prices as provisional.
Which Costs Belong In A Freight Software Budget?
| Cost area | What to request from the vendor or project team |
|---|---|
| Subscription and users | Base platform fee, modules, paid roles, branches, customer or agent access, and the billing period. |
| Usage | Billable event, included allowance, transaction tiers, overages, API calls and volume commitments. |
| Implementation | Configuration, project management, testing and acceptance work. |
| Data migration | Export, cleaning, mapping, loading and checking rates, customers, shipments and historical records. |
| Integrations | Initial build and ongoing maintenance for TMS, CRM, accounting, carriers and other connected systems. |
| Training and change | User training, documentation, internal process changes and time spent running old and new systems together. |
| Ongoing operation | Support, hosting, storage, security options, third-party tools and internal administration. |
| Exit or transition | Data export, assistance, notice periods and any applicable termination or migration fees. |
Count an expense once. For example, if integration maintenance is included in the subscription, record that inclusion in the notes instead of adding a second charge.
How To Compare Vendor Proposals Fairly
Define The Same Scope
Write down the workflows each option must support: rates, quotes, bookings, documents, customer access, reporting and required integrations. Confirm the countries, legal entities, offices and user roles in scope. For software category selection, use the freight forwarding software comparison.
A lower price for fewer workflows is not an equivalent proposal. Mark missing functions and the cost of any additional system needed to provide them.
Normalize The Billing Units
Ask what triggers each fee. A “transaction” could refer to a quote, shipment, job, container, customs entry or API event. Record minimum commitments, included allowances, volume bands and overage rates. Forecast each billable unit separately when a contract has more than one usage charge.
Enter all proposals in one reporting currency using a documented conversion date and rate. Record whether taxes are included or excluded, and add applicable taxes as their own line when needed.
Include Work Your Team Must Perform
Assign an owner and estimated hours to migration, testing, training, administration and integration support. Include internal work even when the vendor does not invoice for it. Use the freight software implementation guide to scope those activities; keep the detailed rollout plan on that page.
Compare Each Year And The Full Period
Review Year 1 separately because setup and parallel operation often occur then. Review Years 2 and 3 for changes in users, shipment volume, support and recurring fees. Check renewal terms and the dates on which prices can change.
A Three-Year TCO Example
The following figures demonstrate the calculation only; they are not vendor prices.
Assume one-time implementation costs of $20,000, fixed recurring costs of $30,000 per year, internal administration of $4,000 per year, and a $0.50 charge per shipment. Forecast 20,000 shipments in Year 1, 25,000 in Year 2 and 30,000 in Year 3.
| Period | Calculation | Base cost |
|---|---|---|
| Year 1 | $20,000 + $30,000 + $4,000 + $10,000 usage | $64,000 |
| Year 2 | $30,000 + $4,000 + $12,500 usage | $46,500 |
| Year 3 | $30,000 + $4,000 + $15,000 usage | $49,000 |
| Three-year base TCO | Sum of all three years | $159,500 |
At an illustrative 10% contingency reserve, the separate allowance is $15,950, making the planning budget $175,450. Replace every example input with your own forecast and written proposals.
Questions To Resolve Before Approving The Budget
- Which functions, users, entities and environments are included?
- What exactly counts as a billable transaction?
- What happens when volume exceeds a tier or falls below a minimum?
- Who pays for migration, connector changes and failed integration testing?
- Which support level is included, and what costs extra?
- How can fees change at renewal?
- How will data be exported if you leave the platform?
- Which costs are quoted, estimated or still unknown?
For a CargoWise-specific licensing discussion, read the existing CargoWise and VelocityOS guide. Use your current supplier proposal and contract to populate this worksheet rather than transferring another company's published rates into your budget.
Build A Comparable Shortlist
Download the freight software budget worksheet, request itemized proposals and review every missing price before approval. If VelocityOS is on your shortlist, discuss your required scope so its proposal can be entered on the same basis as the other options.
Frequently Asked Questions
Not necessarily. Compare implementation, usage, integrations, internal work and ongoing support over the same period and scope.
No. TCO measures costs. Put operational benefits and return on investment in a separate business case with their own evidence and assumptions.
No. The worksheet displays contingency separately as a planning reserve. Change its percentage to match your budgeting policy.
Leave that unit price blank, record the question and request written clarification. A blank amount is unknown, not free.