A transportation management system (TMS) is a logistics platform that assists businesses in digitally managing their freight operations. It also helps them in planning, executing, optimizing the movement of goods, and ensuring that the shipment is compliant and proper documentation is available. Moreover, it aids in minimizing costs, enhancing shipping efficiency, gaining real-time supply chain visibility and increasing the end-user satisfaction. As it offers in-depth insights and reporting capabilities, it is extensively utilized by retailers, distributors, manufacturers, wholesalers and third-party logistics (3PL) providers worldwide. According to the IMARC Group, the global transportation management system market is expected to grow at a CAGR of around 16% during the forecast period (2020-2025).
In this article, we will be elaborating on top trends shaping the TMS industry in 2020:
Burgeoning E-commerce Sector Positively Impacting TMS Sales
E-commerce has overtaken the retail sector to meet the continually altering needs of consumers by making online shopping a hassle-free experience. This can be accredited to the sudden outbreak of the coronavirus disease (COVID-19), consequent lockdowns implemented by governments of several countries and temporary closure of shopping outlets and other stores. As a result, individuals are resorting to online shopping for purchasing essential and non-essential items, which, in turn, is increasing the sales of TMS to maintain shipping operations.
Leading Players Using IoT for Tracking Goods
Over the years, the leading TMS market players have relied on manual entries and balancing delivery windows with costs. However, as the pressure of faster and a greater number of deliveries is increasing, they are collaborating with RFID providers to develop integrated solutions and increase operational efficiency by minimizing manual inputs and broadcasting signal information about the location and specifications of the product in transit. Furthermore, one of the recent developments in the industry is the increasing application of intelligent wireless connectivity and smart sensor technology to provide organizations with real-time information. The integration of the Internet of Things (IoT) technology has improved product traceability and inventory control. Apart from this, it has also enabled dynamic routing and the monitoring of product quality data.
Advancements in SaaS and Cloud-Based Solutions
Advancements in various technologies are accelerating the maturation of TMS solutions, especially those that enrich and empower the user community by integrating partners and aggregating data. For example, continuous improvements in the software as a service (SaaS)- and cloud-based solutions, in confluence with the expansion of a multi-channel distribution system, has redefined the boundaries of logistics reach of the software. It offers several intangible benefits in cost structure, scalability, accessibility, visibility and collaboration.
Improving Bilateral Economic Relations
In the present global economic scenario, countries are no longer restricting economic activities within the home economy on account of the globalization and liberalization. They find bilateral economic relations advantageous in the growth and development of an economy as they offer employment. With the inflow of capital to these countries, economic activity is prospering. Consequently, many countries around the world have established strong bilateral economic relations with other countries to strengthen logistics. This, in turn, is propelling the TMS market growth.
The thriving e-commerce sector, along with the improving bilateral economic relations among various countries, has provided lucrative opportunities to the leading vendors in the industry. They are collaborating with RFID providers and integrating IoT technology to improve product traceability and inventory control. Apart from this, advancements in SaaS and cloud-based technologies are among the significant trends anticipated to influence to market in 2020.
About IMARC Group: IMARC Group is a leading market research and consulting company that offers management strategy and market research worldwide. The company has done multiple projects on the global transportation management system (TMS) market, which has enabled the clients to set up and expand their businesses successfully.