The State of the TMS Market

State Of The TMS Market

The state of the global TMS market is changing.

What’s most interesting about the rapid change in the market is its driving force. Like all other industries, shippers are continuously looking for ways to do more with less and leverage technology to automate processes. 

Unfortunately, those capabilities do not always translate well when it comes time to buy a TMS. Major TMS market software vendors, including MercuryGate, have taken note of this exact problem.

 What do we mean? To answer that question, let’s take a closer look at the problems of the traditional TMS market, why TMS adoptions might be considered an epidemic, and the impacts of rapid changes within the market as a whole.

What’s Wrong With the Traditional TMS in Today’s Global Market?

Shippers have always wanted to understand their freight status. 

Questions like “where’s my load, when will it arrive, why hasn’t it arrived yet” are only a few of the issues that drove shippers to begin adopting a TMS in the first place. 

Technology has made their lives easier in many ways, and shippers want to continue to reap the benefits of using technology to streamline and improve freight management. 

For many organizations that attempt to build an in-house TMS, they quickly learn that it can create many new challenges and can actually end up costing more than they bargained for. 

The state of the TMS global market has evolved beyond simple management of freight and booking shipments. It now comprises traceability, omnichannel capabilities, e-commerce capabilities, customer loyalty, third-party marketplaces, TMS automation for additional parties that may be involved, and many other scenarios that can occur in the supply chain. 

A successful TMS can be costly to implement on your own, and that fact is widely recognized by the leading 3PLs and systems integrators.

In addition, the industry as a whole remains disparate. Small shippers and logistics service providers try to make it on their own and fail to reap the value of a connected, unified industry. 

Many freight brokers still rely on manual processes and the challenges associated with trying to stay relevant in the age of e-commerce highlight company deficiencies. 

Integration is the key to escaping the disparate prison so many companies have built, and it is reflected by the growing rate of TMS adoption.

TMS Adoption Is an Epidemic

The rate of TMS adoption has steadily increased over recent years. 

The information highway has evolved, and as explained by Trucking Info, “the industry has progressed from phone calls to automated faxes to EDI status updates to web portals and to APIs (application program interfaces that allow various systems used by carriers and their customers to share data). 

More recently, third-party vendors offer platforms to manage the data shared between shippers and carriers and also to collect carrier data into a central point for shipper access. A fleet’s customers today want 100% visibility and real-time data on their shipments. Beyond GPS position, that might include route, mileage, or trailer data such as temperature.”

While some carriers may offer TMS platforms to connect a specific shipper to that carrier, the reality is that no shipper uses one carrier, and often will use, across their enterprise, hundreds of potential carriers. Meanwhile, major companies are turning their attention to unifying TMS solutions to unify parcel, less-than-truckload (LTL), and full truckload, all while offering exception management, freight claims management, deep analytics, automated invoice auditing, and modern integration between disparate systems.

Moreover, a Peerless Research Group’s 2019 Technology Study, says Supply Chain 24/7, found transportation management systems help 26% of companies suffering from problems finding reputable carriers, to connect with the right carriers that will yield higher on-time and damage-free shipments. Yet, adoption, according to the study, still has a long way to go. 

The study cites that currently, warehouse management systems (WMS) have the highest adoption rate at 39%.

Impacts of Changes in the TMS Market

The impact of rapid changes in the TMS market is significant, affecting every industry, and offering proven benefits that go well beyond the limits of legacy platforms. 

Some key impacts include:

  • Faster deployment
  • Increased ROI
  • Lower TCO
  • Improved competition with e-commerce juggernauts
  • Decreased implementation costs
  • Improved customer service for system users
  • Continuous access to more carriers and data via API-driven systems
  • SaaS-based code that reduces costs and streamlines data storage and freight management

Reap the Benefits of a Strong Player in the TMS Market Now

The path to success in the TMS market begins with recognizing that your company needs a better solution. Every player is looking to reduce freight costs to improve profitability, gain visibility, and be more strategic and competitive. 

The solution to address these objectives exists in the form of an advanced, easy-to-use TMS, such as the MercuryGate transportation management platform. Know how the TMS market is changing, and use that information to justify your investment.

Connect to Find Out More About How Your Organization Can Bring the TMS Market to Your Doorstep with an API-Driven, SaaS Platform


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