Subscribe to our free, weekly email newsletter!


TMS market is on the mend following recession, says ARC Advisory Group

By Jeff Berman, Group News Editor
May 05, 2011

The market for Transportation Management Systems (TMS) appears to be heating up again, according to data released this week by ARC Advisory Group.

The Dedham, Mass.-based firm said that the TMS market has “bounced back” after the global recession, growing faster than the rate of inflation in 2010, with significant growth forecasted through 2015. Company officials declined to provide specifics on the rate of forecasted growth.

ARC groups TMS into three application areas: “Planning & Execution” solutions or end to end transportation systems used by shippers who utilize carriers to move their freight; “Fleet Management” as an end to end solution for shippers/carriers that own transportation assets and need to manage those assets efficiently and effectively; and “Point Solutions,” which include any systems that cover only a part of the end to end transportation process.

ARC Service Director for Supply Chain Management Steve Banker said that TMS multitenant solutions that leverage the network remain a key growth driver for the TMS market.

ARC maintains that transportation is inherently a “multi-partner collaborative endeavor,” with networked-style solutions such as SaaS (Software-as-a-Service) leveraging multitenant architecture used to facilitate things like:
-high-quality electronic communication with partners;
-quicker onboarding of new partners;
-enabling efficiencies in transporation procurement;
-improvement in freight audit and pay; and
-the ability to leverage data from the network to provide benchmarking data.

“The primary advantages of multitenant networking solutions are that the data cleansing issues largely disappear,” Banker said in an interview. “Secondly, the network can be leveraged.  If you are dissatisfied with a carrier on a lane and need a new one, there is a good chance that carrier is in the network and you can start quickly tendering loads via EDI without having to set up one to one connections.  Most companies don’t want to be in the EDI data cleansing business.”

Banker noted that the two sectors that are leveraging TMS more so than others are third-party logistics (and carriers) and retail.

For related articles, please click here.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Of special interest to readers of Logistics Management will be “Americas Update,” which will look into the future of the market in the Americas and assess how firms will be able to favorably position themselves to compete and win market share.

After 20 years, two congressional mandates and countless lawsuits and lobbying efforts, safety advocates and the Teamsters union still say there are too many inexperienced rookie truck drivers hitting the road without sufficient behind-the-wheel training.

Congested U.S. port terminals, harbor and over-the-road truck and driver shortages, slower trains and longer rail terminal dwell times due to increased domestic rates have not only disrupted service but also driven intermodal rates and cargo handling costs up sharply.

Southern California shippers are getting a break on container dwell expenses for the next ten days as the Port of Long Beach announced that it had added an extra three days to the time that overseas import containers can remain on the docks without charge.

The long-simmering court battle over whether FedEx Ground’s workers are independent contractors or employees appears headed to the appellate courts—and maybe the U.S. Supreme Court.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA