Global Transport Management System Market 2017-2021
About Transport Management System
Transport management system (TMS) is a subsection of supply chain management relating to transportation operations. TMS provides a wide variety of functions to optimize and automate transport processes for shippers and logistics service provider. It includes planning, execution, financials (freight payment and cost allocation), and fleet management.
Technavio’s analysts forecast the global transport management system market to grow at a CAGR of 6.87% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global transport management system market for 2017-2021. To calculate the market size, the report considers the revenue generated from the sales of transport management solutions including the issue of new licenses, subscriptions, installations, updates, technical support, and software maintenance.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Transport Management System Market 2017-2021
Technavio recognizes the following companies as the key players in the global transport management system market: Descartes, JDA Software, Manhattan Associates, Oracle, and SAP.
Other Prominent Vendors in the market are: 3Gtms, Acuitive Solutions, Agistix, Aljex Software, Amber Road, Argos Software, Cerasis, Cirrus TMS, Cloud Logistics, CTSI-Global, GT Nexus, HighJump Software, Kewill, LeanLogistics, Logility, MercuryGate, One Network Enterprises, Omnitracs, TMW Systems, and Wolters Kluwer Transport Services.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is integration of TMS with IoT and cognitive computing. Organizations, OEMs, and stakeholders in the transport sector use advanced computing solutions such as telematics, smart sensors, cognitive computing, and artificial intelligence to build IoT-based IT infrastructure. Automotive OEMs use IoT solutions integrated with big data technology to enhance the design of vehicles for superior user experiences. In addition, TMS vendors are partnering with RFID providers to develop integrated solutions as they have made R&D investments without much return. RFID systems increase efficiency by reducing manual inputs and broadcasting signal information about the location and specifications of the product in transit.”
According to the report, one driver in the market is high ROI and improved process efficiency by implementing TMS solutions. Transportation management systems are mentioned by companies as delivering higher ROI than other supply chain technologies such as order and labor management. Cloud and SaaS deployments of a TMSs have the potential to deliver faster ROI due to low upfront costs and ease of integration. Some quantifiable measurements of value include lower freight costs, faster order-to-delivery cycle times, reduced compliance fines, lower inventory management costs, the ability to select better carrier rates, and less time spent on maintaining customs paperwork. Other benefits include greater agility, increased visibility, and lower risks.
Further, the report states that one challenge in the market is high cost associated with deployment of TMS solutions. Upfront costs are the major obstacle to the adoption of TMS solution by SMEs. Many decision makers in SMEs lack the understanding that TMS solutions can improve their business efficiency. They are not able to justify spending on TMS solutions as they consider it a cost center rather than a profit center. Different government organizations, such as CII in India, are pushing for the adoption of cloud by SMEs to help them reduce costs and mitigate the risk of over or under buying equipment, which is a major pain point for CFOs in the allocation of funds to IT departments.
Descartes, JDA Software, Manhattan Associates, Oracle, SAP, 3Gtms, Acuitive Solutions, Agistix, Aljex Software, Amber Road, Argos Software, Cerasis, Cirrus TMS, Cloud Logistics, CTSI-Global, GT Nexus, HighJump Software, Kewill, LeanLogistics, Logility, MercuryGate, One Network Enterprises, Omnitracs, TMW Systems, Wolters Kluwer Transport Services.
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