TMS market showing strong post-recession rebound, says ARC Advisory Group
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.
in the NewsState of Logistics 2016: Pursue mutual benefit November non-manufacturing activity turns in strong performance, reports ISM November non-manufacturing activity turns in strong performance, reports ISM Mixed metrics are intact in TIA Q3 Benchmarking Report Six Ways Cloud ERP Supports Rapid Innovation More News
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 AuthorJeff 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!
Warehouse & DC Operations Survey: Ready to confront complexity 2016 Quest for Quality Awards Dinner View More From this Issue