By Abishek Bhat on Sep 22, 2017 5:00:57 AM
The Global Transportation Management market is expected to grow from USD 78.20 Billion in 2017 to USD202.14 Billion by 2022, at a CAGR of 20.9%. This accelerated growth is the changing face of the real-time economy which demands faster and timely execution of business processes. Across industries but more so in the supply chain, logistics and transportation industries, speed, timing, efficiency and optimization are the crucial defining factors, achievable due to the adoption of digital technologies.
Transportation management companies have over the years relied on their existing systems which can range from manual entries to balancing delivery windows with costs. However, the pressure for tighter, faster and more deliveries has increased to a point where the solution is change. Also, technology innovations such as machine learning, artificial intelligence and automation are reinventing the transportation industry. Those companies that are steering ahead of competition are the ones that are reinventing their business strategy. These companies have implemented global logistical functions and features, such as multi-carrier parcel management and 3D load design, owing to the expansion of supply chains globally.
Moreover, TMS vendors are collaborating with RFID providers to develop integrated solutions to increase operational efficiency by minimizing manual inputs and broadcasting signal information about the location and specifications of the product in transit. One of the recent developments in the market is the growing use of intelligent wireless connectivity and smart sensor technology solutions to offer real-time information to organizations about transport vehicles.
There are multiple dynamics that are driving the change. Big Data is providing companies with an unprecedented amount of actionable market intelligence. The Internet of Things is increasingly connecting people 24/7 with all types of devices, networks, vehicles and more. As an alternative to manual methods, shippers have to find on-demand, software solutions such as digital freight matching (DFM) to address requirements such as managing just-in-time requests for quotes or using transportation brokers, third-party logistics providers and load boards.
DFM lets shippers directly and almost immediately find drivers with capacity to transport their truckload, partial truckload and less-than-truckload freight on the right types of trucks on the dates and routes they need. Shippers get competitive and transparent rates upfront and can track in-transit and delivery details so they always know the status of their shipments.
In a recent case study, a leading Transportation Management System (TMS) provider’s cloud-based multi-tenant platform is used by customers for freight purchase and management, with full supply chain visibility, stakeholder collaboration and shipping intelligence. The system brought together comprehensive information from ordering and inventory, to temperature monitoring and transit to expense allocation. The company to sustain its position as a chosen TMS provider had to live up to is reputation of simplifying complex supply chains for which it needed to seamlessly connect internal and third party systems whatever the configuration or size of their systems.
Smart usage of digitalization and IoT resulted in an Electronic Data Interchange (EDI) & web services platform that has simplified procurement, planning and optimization, execution, freight bill auditing and settlement and reporting and analytics for its global customers. The platform connects with every integral piece of data and this visibility and collaboration has resulted in dramatic cost savings for its customers. The disruptive SaaS TMS built on the latest cloud technology has changed how companies purchase and manage freight, consolidating its leadership position the TMS segment.