TMS Provider Disaster Stories: 6 Vital Questions

In the past few months, several Transportation ManagementSystem (TMS) providers have gone bankrupt. Several more are teetering on the edge—desperately searching for more funding, cutting staff, and slashing prices in a last-ditch effort to survive. And now, we’re getting urgent phone calls from brokers, carriers, and shippers caught in the fallout, scrambling to keep their operations running. We’ll tell you how to avoid this disaster. Read on!

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It doesn’t have to be this way.

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The truth is, most TMS disasters are entirely avoidable—if you know what questions to ask. Whether you're selecting a new TMS provider or doing a health check on your current one, now is the time to dig deep and protect your business from disruption.

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Here are six essential steps you should take right now to avoid a costly TMS shutdown.

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1. Ask ChatGPT the Hard Questions

Artificial intelligence is your friend here—so use it. Just open ChatGPT and ask:

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“Is [XYZ TMS] profitable? Have they had layoffs recently? Are there rumors about them raising funding, trying to sell, or recapitalizing? Who owns them? What happens if they don’t get more funding soon?”

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You’ll be surprised how much public (and credible) information is already out there. These are exactly the kinds of questions investors, competitors, and employees are asking too—so why shouldn’t you?

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Pro tip: Ask follow-up questions. If a provider raised VC funding in the past, find out when that funding occurred and how long it's likely to last. The clock might already be ticking.

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2. Ask How Much Cash They Have Left

Let’s be blunt: Some big-name TMS providers are burning through cash fast, and their only hope is raising more capital. Without it, they’ll be forced to shut down or sell in a fire-sale.

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So, ask them directly:

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“How much runway do you have left without raising more money?”

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If they dodge the question or give a vague answer like, “We’re focused on growth,” take that as a red flag. And if they admit to being unprofitable or having less than 12 months of runway—start planning your exit. Fast.

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Switching TMS providers isn’t fun, but it’s far better to do it on your timeline, not theirs.

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3. Check Glassdoor for Layoff Patterns

Glassdoor.com is a goldmine for understanding the internal health of a TMS vendor. If you see multiple rounds of layoffs over a short timespan—or a flood of negative employee reviews about leadership, morale, or direction—that’s usually a sign of deeper financial problems.

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And remember, if a company is laying off engineers, customer support reps, and account managers, it directly impacts your experience as a customer. Don’t wait until support tickets go unanswered or bugs go unfixed. Use employee sentiment as an early warning system.

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4. Google Their Reviews on Trusted Sites

Fire up Google, and search for:

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“[XYZ TMS] reviews”

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Look specifically at trusted third-party review platforms like Capterra, Software Advice, Crowd Reviews, and Reddit.

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You’ll get real insights from real users—good, bad, and ugly. Look for patterns: Are people complaining about missing features, poor support, or sudden price hikes? Are long-time customers saying the company “isn’t what it used to be”?

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Your TMS touches nearly every part of your operation, so a weak or unreliable system puts your entire business at risk.

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5. Ask If They’re Profitable — and Demand Proof

This is the simplest question of all:

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“Are you profitable?”

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If the answer is no (or “not yet,” or “we’re investing for growth”)—run away.And if they say yes, ask them to prove it. A healthy TMS provider should have no problem sharing high-level financials or a basic profit history.

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Why does profitability matter so much? Because it signals stability. It means the company doesn’t depend on outside investors to survive. Profitable companies have the freedom to invest in innovation, support, and customer experience—without the existential risk hanging over their head.

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6. Be Wary of Desperation Discounts

Several TMS vendors have recently started slashing prices, offering massive discounts just to win new customers. While that might seem like a great deal on the surface, it often signals one thing: desperation.

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In many cases, investors have told these companies to “get cash in the door now” or face the consequences. When a provider is willing to lose money just to sign a deal, it’s usually because they won’t survive without that short-term revenue bump.

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Ask yourself: If they’re cutting prices to unsustainable levels, how will they afford to support you long-term? Who will keep your data safe, your platform running, and your features evolving?

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Discounts are nice—but YOUR survival is better.

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The Bottom Line: It's Your Job to Know

Let’s be crystal clear:

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It’s up to you to know whether your TMS provider is stable, profitable, and built to last - or if their bankruptcy is a distinct possibility.

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If your TMS system shuts down next month and you didn’t ask the tough questions—that’s on you. Your TMS platform is the heartbeat of your operation. It needs to work every day. It needs to evolve with your business. It needs to be reliable when it matters most.

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So before you’re left scrambling, do your due diligence. Ask the right questions. Investigate. Verify. Plan ahead. KNOW!

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The Safe Choice? AscendTMS

Here’s what we can tell you about AscendTMS, with total transparency:

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✅ Profitable every single month for over 8 straight years

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✅ Zero debt

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✅ Strong balance sheet

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✅ Fast-growing and fully self-funded

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✅ We’ll write any feature you ask us to for — for free

While others are out there burning cash, laying off staff, or begging for rescue funding, we’re hiring, building, and thriving. That’s why thousands of brokers, carriers, and shippers trust AscendTMS to run their business operations every single day.

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So, before you gamble your future on a struggling TMS provider, just ask ChatGPT the hard questions. Then call us. We’ll give you the answers you really need - and we'll tell you just how close to bankruptcy our TMS competitors really are.

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But, if you need a stable, profitable, reliable, and future-proofed TMS, just visit TheFreeTMS.com and start your free trial, today. 🏆