Transportation Management System Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Transportation Management System Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Transportation Management System Market is expected to register a CAGR of over 10.85% during the forecast period (2021- 2026). According to a global survey by Smeal College of Business at Pennsylvania State University, 38 % of shippers and 67 % of 3PLs ( Third Party Logistics) stated that they were investing in a transportation management system in 2018.

• With the increasing trend for utilizing backhauls support services for reverse logistics, retailers, and logistics companies are looking forward to the TMS to use the entire process. TMS takes information from various providers, on several different routes, and organizes them into a simple to set of document. The shipping manager uses it to make a quick and effective decision on how to move their freight from one place to another and thus driving the TMS market.
• Further, nowadays, retailers are inclining towards omnichannel systems that incorporate brick-and-mortar, online, mobile, catalog, and other sales channels under a single umbrella. That increases freight transportation, and TMS helps in increasing visibility to all shipments under one user control. This visibility allows for better business decisions when making future business decisions involving transportation.
• However, due to the shortage of experienced professionals, and higher implementation cost with higher maintenance cost are few factors which are hindering the market from growing during the forecast period.

• With liberal product return policies, rapid response times, and 24/7 customer service have placed a greater emphasis on the management of the return, refurbishment, and restocking of finished goods. Therefore, reverse logistics and closed-loop supply chain have become increasingly important in this era.
• A good reverse logistics program generates maximum value from each item returned. For example, consumers who order clothes online typically order several different sizes and colors of the same thing. Then, they’ll send back the inappropriate products. Good reverse logistics practices encourage future purchases. Therefore, executing TMS offers business efficiency, sophisticated process automation with greater management insight, detailed cost tracking, and robust load planning that makes the most of available resources.
• According to the National Retail Federation, the cost of retail items returned in United States in 2018 was USD 369 billion while in 2017, it was USD 351 billion. With the implementation of TMS, it will help in tracking and analyzing shipping trends. It will also help in preventing future supply chain disruptions and reduce transportation costs.
• Therefore, TMS technology is the need for reverse logistics operation. This technology will measure and report detailed shipping records, monitor vendor and carrier performance, optimize routing and mode, and most importantly, will give end-to-end visibility of freight movement.

• Asia-Pacific is expected to witness the fastest growth rate due to the increasing international trade, particularly in emerging economies, such as China and India,
• Moreover, in the Asia-Pacific region, smartphones penetration is increasing coupled with increasing disposable income. These factors support the growth of eCommerce in these regions. Therefore, a proper transportation management system will be required to cater to maximum customers. This will give an immense opportunity to TMS market.
• Further, according to Boeing, by 2037, China plans to have around 740 freighters in its cargo airplane fleet while it has only 170 freighters in 2017. Therefore, it can be interpreted that with such an increase in freighters the need for TMS will also increase. TMS can reduce the complexity dramatically by integrating fleet and logistics management throughout the network.
• Therefore, all the above factors are expected to boost the transportation management system market in the region.

The transportation management system market is moderately competitive. Due to rapid industrialization, this market has enormous potential to grow. Therefore, vendors started to target untapped smaller companies. That is fueling the industry to penetrate every corner of the business. Some of the key players are Oracle Corporation, SAP SE, and Cerasis Inc. amongst others. Some of the recent developments are:

• July 2019 - Gerber Plumbing Fixtures has chosen 3Gtms, LLC' TMS, to meet the needs of its wholesale distribution customers as well as the end-consumer. Since implementation, Gerber has gained improvements in cost-per-mile, cost-per-piece, as well as a drop in the cost of freight as a percentage of sales.
• July 2018 - CargoSmart Limited announced to develop a blockchain solution for shipment documentation to improve complex supply chain processes. The solution established a digital baseline for trusted shipment documentation management across the shipping and logistics industry.

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