Transportation Management Systems Market - The Opportunities and Areas to Work On

A transportation management system (TMS) is a software solution and a key component of supply chain management which is used to plan and manage the movement of freight. A transportation management system includes planning and managing all transportation and logistics activities.

A transportation management system allows end-use customers to plan and execute transportation of goods in a cost-effective and reliable manner across the supply chain. The services offered by transportation management systems include freight consolidation, scheduling and routing, freight audit/payment, and load forwarding support among others.

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Increasing preference for Software as a Service (SaaS) based TMS solutions is the major factor driving the TMS market sales growth. The increasing demand for SaaS based TMS solutions can be attributed to the growth in intermodal transport across geographies. Furthermore, the need for replacing and updating existing traditional TMS solutions is expected to support the demand for advanced transportation management solutions.

However, lack of awareness among end-users coupled with high deployment cost is the major inhibitor to the growth of the market. Integration of cloud computing and Radio Frequency Identification (RFID) technologies with supply chain management systems offer healthy opportunities for the growth of Transportation Management Systems Market over the forecast period.

Integration of cloud computing technologies has ensured limited capital expense, low total cost of ownership, and greater real-time visibility across the supply chain operations.

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