Keywords: Transportation Management System, Planning and Execution, Fleet Management
Transportation Management Systems (TMS) have become one of the fastest growing solutions in the India supply chain management market. ARC forecasts continued robust growth through 2019.
A number of megatrends affect this market. The first is the robust ROI the solutions can often provide by helping companies lower their freight spend. “A key driver of growth of TMS in India is the acceptance for TMS solutions, as users realize faster ROI,” according to Senior Analyst Neelam Singh, the co-author of ARC’s “Transportation Management Systems for India Market Research Study”.
Proven ROI for Shippers
In a TMS survey, ARC found that respondents indicated freight savings of approximately 6 percent with the use of a TMS application. Of these savings, nearly 60 percent of users indicated that less than 25 percent of the net savings were absorbed by the TMS. These freight savings can be attributed to lower cost mode selections, better routing, and better procurement negotiations.
Tier 1 Customers’ Acceptance Drives Growth
TMS solutions have now started to be widely accepted in India. Tier 1 companies and even small and midsized companies are becoming more important in driving growth, though some challenges like integration with home-grown systems may still prevail. 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 and standardizing on modern TMS, particularly TMS solutions offered by the large ERP vendors.
ARC’s “Transportation Management Systems for India Market Research Study” provides an in-depth analysis of the TMS business in India. In addition to market analysis and forecasts, the study covers the current market nuances, strategic issues, and future outlook. The report also highlights the factors that influence the TMS market in India and its dynamics.
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