A sneak-peak at the growing TMS scene in 2020

A TMS (Transportation Management System) is a piece of software that helps businesses manage their logistics process. It streamlines shipping and logistics, reduces costs, and improves visibility to support their decision-making.

But what are the main ‘need-to-know’ concepts for someone new to the TMS world to understand its growing popularity? 

First: TMS is growing, and it is growing fast

According to Gartner, TMS popularity is rapidly increasing.

In 2018, the TMS market grew exponentially. Only in the US (the biggest TMS market),  the market size was 1830 million US dollars and it is expected to almost triple by the end of 2025. In Europe, the tendency is also growing and will continue to do so in the years to come.

Second: cost reductions are a reality

Cost cutting is without a doubt one of the main advantages of implementing a TMS, and very likely the first one businesses look at when considering the implementation of such a tool. 
Good news! According to a recent study conducted by the ARC Advisory Board, after implementation and management costs, businesses save up to 7.2% on freight costs per year. 

Third: growing and evolving capabilities

The different TMS solutions in the market offer several capabilities that can be implemented based on the complexity of the business you are running. These capabilities cover planning and execution, performance management, visibility, settlement and freight sourcing and procurement. Depending on the level of sophistication and maturity of the existing software offerings, those capabilities may vary. 

But, which capability is more attractive for shippers? According to an internal survey conducted with our pool of customers at Alpega , the most wanted functionality within a TMS was real-time visibility. It has become clear that more and more often shippers want to have visibility into the transportation process to foresee delays and be able to inform the stakeholders in advance.

TMS functionalities grow over time and evolve based on the market’s need. So implementing a scalable product like Alpega TMS allows you to add extra capabilities when your business needs them or when they become available.

Want to learn more about how a TMS can help your business? Have a look here!

Want to download the infographic? Find it here!

The latest insights from the world of transport, logistics and supply chain from our team of in-house experts

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