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Build vs Buy

An Agentic TMS Decision Calculator

May 2026 5 min read

Four paths. One unbiased model.

  1. Status quo. Keep what you have and absorb the drift.
  2. Extend and augment. Bolt decisioning onto your existing TMS.
  3. Build new & maintain. Build composable decisioning in-house.
  4. Buy agentic-native. Buy an architecture designed for the problem shape.
· The calculator

Run yours

Adjust any input. Math recalculates live.

How each path is priced.

Status quo. Annual bleed = your input × annual freight spend × horizon. The slider is yours to fill.

Extend and augment. Indicative $500K–$1.2M over the horizon, biased by your current TMS state.

Build new & maintain. Team payroll × horizon, using Robert Half's 2026 medians — $142K base for software engineers, $170,750 for AI/ML — fully-loaded at 1.35×. Expected adds a 50% buffer; high applies 2.5×, calibrated to BCG's 2024 finding on large-tech program overruns.

Buy composable. Indicative $1M–$4M over the horizon, modulated by complexity. The defensible number is your RFP shortlist.

If you have better numbers, use yours.

What the numbers tend to say

  • Status quo rarely surfaces as the winner once a defensible bleed rate is entered. Until then, the calculator reports it as unpriced.
  • Extend surfaces when complexity is low and current TMS state is modern or composable. Bolt-on integration cost is indicative — your real number depends on architecture.
  • Build surfaces when IT capacity sits at the dedicated-or-larger end, time horizon is 5 years, and risk tolerance is aggressive. The 'expected' case already applies a 50% buffer per BCG 2024 data.
  • Buy surfaces as the default math winner for most enterprise retail inputs. Vendor subscription is indicative — your real number is your RFP shortlist.

The math will not always say buy. When it does not, the calculator will not pretend it did.

Notes & sources

The Build path's “expected” (+50% buffer) and “high” (2.5x) risk bands are calibrated to BCG's October 2024 finding that more than two-thirds of large-scale tech programs miss scope, time, or budget.  Build payroll math anchors to the Robert Half 2026 Technology Salary Guide — $142K median for software engineers, $170,750 for AI/ML engineers, with a 1.35 fully-loaded multiplier per Robert Half methodology.

The transformation-failure context is anchored to Bain's 2024 survey finding that 88% of business transformations fail to achieve their original ambitions.  Total transportation cost is referenced against APQC's cross-industry median of $8.33 per $1,000 revenue.  Status-quo bleed has no defensible Tier-1 coefficient and is taken from your own input; bolt-on integration and enterprise TMS subscription ranges are indicative — defensible numbers come from your own RFP quotes.

Nachiket Murthy

Nachiket Murthy

Product Marketing Manager

Nachiket leads Product Marketing at Locus, bringing over seven years of experience across financial analysis, corporate strategy, governance, and investor relations. With a multidisciplinary lens and strong analytical rigor, he shapes sharp narratives that connect business priorities with market perspectives.