Transportation Management System Market Bounces Back from Recession

'Multitenant solutions that leverage the network remain a key growth driver for this market,' says ARC analyst Steve Banker


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Dedham, MA — May 3, 2011 —



Planning and Execution Is Key





Leverage the Network



  • High quality electronic communication with partners. Many shippers find the data cleansing associated with EDI a burdensome task they are eager to outsource.
  • Quicker onboarding of new partners. Preferred suppliers on a lane may not be executing properly, or they may be turning down too many tender requests. Shippers may need to quickly add new carriers to that lane. In a networked solution this is far easier.
  • Enabling efficiencies in transportation procurement. Carriers who enter data into procurement bid optimization engines often have many data that are identical to those which they would provide a different shipper in a bidding opportunity. A networked solution can prevent them from having to rekey common data.
  • Improvement in freight audit and pay. Once a bid has been accepted, a third-party network can provide a neutral location for contract data to be hosted and thus facilitate a freight audit and pay process with fewer discrepancies.
  • The ability to leverage data from the network to provide benchmarking data. Most suppliers agreed that providing reports on whether capacity on a lane is getting tighter or not is viable. Some suppliers argue that average costs per lane can be provided. Others say that benchmark data on average costs per lane are still not viable, because the average lane costs do not represent apples-to-apples comparisons. Increasingly, TMS suppliers will need to sign contracts allowing them to use their customer's data as long as the source of the data is kept confidential.





www.arcweb.com/res/tms

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