Keywords: Transportation Management Systems (TMS), Transportation Management Software (TMS), Transportation Management Solution (TMS), Third Party Logistics Providers (3PL), Global Market Research Report, Market Shares, Market Growth, Leading Suppliers
The worldwide market for Transportation Management Systems (TMS) experienced year over year double digit growth. ARC is forecasting continued robust growth through 2017.
“A key driver of growth,” according to Steve Banker, Service Director of Supply Chain Management at ARC Advisory Group, “is the renewed interest of large companies in TMS solutions.” Steve is the principal author of ARC’s “Transportation Management Systems Global Market Research Study”.
Tier 1 Customers Drive Growth
According to Steve, “In emerging markets, it is not unusual to see growth driven by Tier 1 companies, companies with over $1 billion in revenue. But the TMS market is a large - over $1 billion in 2012 revenues - established market. What you would expect to see is small and midsized companies beginning to be much more important in driving growth. That is not what we are seeing in this market.”
Tier 1 companies headquartered in North America or Europe, who had gotten a good payback from TMS in a regional deployment in their home region, are beginning to roll out that solution in other regions of the world. And some of the larger multinational companies headquartered in Latin America and Asia are buying their first TMS for deployment in their home regions. Further, the largest TMS suppliers in the market are not having to discount their solution when sold into Latin America or Europe.
This multi-region rollout by large shippers is being supported by TMS solutions whose functionality has become more global in recent years. This global functionality includes the ability to effectively optimize international shipments, regional specific functionality, and analytics that can effectively deal with currency fluctuations that occur during a process that spans from planning, to booking, to settlement.
It is not just large shippers driving growth. There is a new wave of buying among logistics service providers (3PLs) who are abandoning legacy solutions standardizing on modern TMS, particularly TMS solutions offered by the large ERP vendors.
For more information on this study, please visit our Market Research section.