News and Press
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01
2017

6 TMS Trends to Watch in 2017

by LPS Insights, on January 30, 2017

transportation management systems for 2017

6 TMS Trends to Watch in 2017

The months of January and February is the traditional time of the year to share trends and insights that supply chain and logistics professionals can expect to see and experience in the ensuing months. Larry Hall, LPS’s founder and principal, will share his own prognostications this Wednesday, February 1, on the LPS blog.

 

In the meantime, however, we found another take on what to expect in 2017 from an influential and respected voice in the industry, Logistics Management. In this article, the online and print publication looks closely at the trends impacting transportation management systems (TMS). Its reasons are clear-cut: “As the world’s transportation networks and supply chains become increasingly intertwined and complex, the systems that support them are improving and advancing at the same break-neck speed.”

 

By speaking with three well-regarded supply chain software analysts, the publication uncovered six trends affecting the evolution and adoption of the TMS.

 

1. Software that offers better end-to-end supply chain visibility.

We are almost to the point where shippers have “24/7/365 real-time visibility” as shipments across the globe. “Amazon, with its last-mile delivery accomplishments, is leading the charge when it comes to B2C visibility—a trend that’s also making an impact on B2B commerce,” says the publication.

 

2. Higher TMS adoption among small- to mid-sized companies.

Adoption rates of TMSs by smaller and midsize companies have been in the 10–25 percent range, low compared to larger companies. But with more TMSs moving to the cloud, costs have come down and adoption has shot up.

 

3. The “Uberization of freight” drives shippers to invest in transportation execution management systems.

“What happens when you take TMS, put it on steroids, and unleash it on today’s supply chains? You’d likely wind up with a transportation execution management system that’s able to orchestrate multi-party, multi-tier transportation activities across supply chain partners,” reports Logistics Management.

 

4. The upper end of ROI is increasing for TMS.

After investing in a TMS, companies are reducing freight spend by an average of 5–10 percent.

 

5. Cloud comprises a larger and larger portion of the TMS market.

“TMSs continue to shift from being an on-premise/installed solution to a web-based platform where shippers, business partners, carriers, third-party logistics (3PL) providers, and even customers can access pertinent information via the web on a 24/7/365 basis in real-time,” says Logistics Management.

 

6. The “indirect” approach to transportation management gains traction.

More shippers take advantage of TMSs that become available to them when working with a third-party logistics (3PL) company.

 

For more detail and insights into the six trends affecting TMSs, read the original article: “State of Transportation Management Systems: Trends to Track in 2017.”

 

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