Some companies prefer to expense operating costs rather than capitalize them and SaaS use allows this. Other benefits include significant reduction of manpower by automating processes and increased profitability from optimizing supply chain functions.
I know of one SaaS provider which upgrades its solution six times a year. The upgrades are included in the subscription fee and are automatic since the solution is hosted outside a client firm’s systems. This is in contrast to company-hosted solutions that require internal IT to make changes for new upgrades.
We recently enabled a TMS selection coupled with an implementation in a three-month timeframe. Three months after implementation, the entire project paid for itself and then began contributing to profitability. We are currently working with a SMB in a traditional, heavy manufacturing industry (like the overall economy is down significantly) who realizes that now is the time to invest for growth while others are cutting back on investments for improvement. TMS is one area of opportunity they are pursuing.