TMS market is on the mend following recession, says 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.

By ·

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 click here.


About the Author

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. Contact Jeff Berman

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!

Latest Whitepaper
Boost your retail performance with an integrated solution
From outbound and inbound route planning to inventory management, and workforce optimization to home delivery planning, your planners need the full picture to make the best decisions.
Download Today!
From the September 2017 Logistics Management Magazine Issue
While Amazon’s recent bid to purchase Whole Foods made mainstream headlines, the e-commerce giant will still need to adhere to time-tested realities. Any way you slice it, the integrated U.S. cold chain requires optimized service from existing ports, 3PLs, cold storage warehousing, transportation providers and high-value vendors.
Improving 3PL Management: Glanbia Adds Muscle to Logistics
Why Retail Supply Chain Transformations Fail - and how to get it right
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
EDITORS' PICKS
26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...