Subscribe to our free, weekly email newsletter!


TMS market showing strong post-recession rebound, says ARC Advisory Group

By Jeff Berman, Group News Editor
May 07, 2012

New research from Dedham, Mass.-based ARC Advisory Group indicates that the transportation management system (TMS)  market has “bounced back strongly.”

ARC defines the functionality of TMS systems as helping companies efficiently, reliably, and cost-effectively moving freight from origin to destination. And the firm classifies TMS into two primary application areas: planning & execution, which is a TMS designed for freight moves involving a carrier, and fleet management, which is for freight moves involving transportation assets owned by a company.

Looking at the North America TMS market, ARC said that revenues has bounced back strongly since the end of the recession, with pent-up demand leading to robust growth next year, which will then be declining to historical growth rates. But in Europe, the forecast is less optimistic due to its high potential to return to a recession. ARC expects European TMS revenues to decline for the next two years. ARC also noted that the TMS market is seeing growing demand in Latin America, too.

In an interview with LM, Steve Banker, Ph.D., ARC Service Director for Supply Chain Management explained that the biggest drivers for TMS are the aforementioned pent up demand from the recession and TMS providing a better ROI for new verticals.

“Planning & execution [TMS] outpaces fleet management because fleet is a much more mature market,” he said.  “Maturity probably reflects the fact that if you own trucks and you want to improve productivity, this is one of the best things you can do.  But in P&E it I want to reduce freight spend I have two big choices, outsource or buy TMS.”

While he could not disclose a specific figure for projected TMS growth rates in North America, Banker did say that overall growth is in the double-digit ranges, but the fleet market is not growing at double-digit rates.

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

While it feels somewhat hard to fathom, the stage is set for the Council of Supply Chain Management Professionals (CSCMP) Annual Conference in San Antonio, Texas.

Carload volumes were up 1.4 percent at 300,388, and intermodal volume for the week ending September 13 was up 5 percent at 279,052 trailers and containers.

Company says the Cloud offering allows customers to respond more quickly to new business opportunities, without significant upfront cost and implementation times.

As e-commerce continues to take a bigger piece of the holiday package delivery pie, it stands to reason that companies need to be proactive and prepared in order to deliver premium service during the busiest time of year, which is rapidly approaching. And that is exactly what transportation giants UPS and FedEx are doing this year. How are they doing it exactly? The primary step they are taking is to up their numbers of seasonal staffers.

A recent hearing of the Subcommittee on Coast Guard and Maritime Transportation suggests that the U.S. Merchant Marine industry may be poised for a major comeback.

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