Transportation Management Systems and the Logistics Evolution
Price: Starting at USD 3,000
Publish Date: 15 Aug 2018
Code: AN-5024
Research Type: Research Report
Pages: 32
Transportation is a foundational, often manual, and expensive element of the supply chain. Continued complexity from regulation, taxes, staffing and e-commerce expectations will continue to challenge companies across the globe. Transportation Management Systems (TMS) have been present as a part of Supply Chain Management (SCM) for years and are used across many market verticals, including retail, automotive, pharmaceuticals, and food products.
TMS market is a strategic enabler of the supply chain, with numerous established companies eyeing potential acquisitions to bolster cloud, geographic, and modal coverage. This creates a significant opportunity over the next five years to use cloud platforms to level the playing field for Small- to Medium-Sized Businesses (SMBs) as well as diversify and extend businesses initially built for Enterprise Resource Planning (ERP), SCM, and telematics markets.TMS revenues are expected to reach at least US$12.8 billion globally this year, growing to over US$25 billion by 2023, fueled by the need to reduce transportation costs by up to 10% and reduce monitoring time by up to 50%, as well as find alternatives to rapidly increasing spot market pricing.
A further shift away from on-premise, high-investment, and lengthy training/upgrade cycles will continue to ramp toward cloud-based, scalable “as-a-service” models, with cloud-hosted platforms expected to begin to pass those of on-premise adoption by next year.
TMS will need to incorporate continued advancements in technology, including advancements in transport mode evolution; recent developments in software, such as predictive analytics and machine learning; and changes in the concept of manufacturing, such as 3-D printing. Additional technologies for consideration include linkage to autonomous vehicles, blockchain, and delivery drones.
