In the last 5 to 10 years, the transportation world has changed dramatically and the TMS market has continued to grow and evolve. The lines between 3PLs, carriers and brokers are blurring as customers require a broader scope of services. 3PLs are adding brokerage services and brokers are adding managed services. Shippers are empowered with more choices and customers are leveraging improved visibility across their logistics operation as better solutions and tighter integration capabilities hit the market.
The convergence of these factors is fueling the demand for agile and nimble transportation management systems (TMS). A TMS software system is already one of the best solutions for proven cost savings, but it is also demonstrating its relevancy in every corner of an organization as more robust solutions address the complex needs of today’s 3PLs, shippers and brokers.
According to Gartner’s Magic Quadrant for Transportation Management Systems,
“Gartner continues to see the TMS market grow at an accelerated rate. Factors such as the need to reduce costs; improve internal productivity, efficiency and customer service; increase visibility; and make better use of capacity are driving the growth of the market through 2022. The Americas regions will continue to lead the global TMS market in volume of implementations, followed by EMEA and then Asia/Pacific (APAC).”
“By 2022, spend on TMS applications will be $1.94 billion, accounting for 31% of the $6.2 billion supply chain execution (SCE) market. This growth will be driven by the replacement of on-premises software with SaaS applications. SaaS will account for 65% of the TMS market by 2022, up from 37% in 2017.”¹
As the lines between shippers, 3PLs and brokers dissolve, we believe the growth for TMS applications will continue as long as software providers listen to customer needs, anticipate market changes and deliver systems that are not only broader, but that continue to help users work faster and more easily. Providers will continue to think more creatively about how to address today’s realities and complexities, and this will impact the ROI and usability of systems for customers.
Some of the latest 3Gtms releases and innovations that we have introduced to help our customers include:
- A first-of-its-kind Load Management Workspace that helps you make faster, more profitable decisions with one screen and fewer clicks.
- Our Integration Hub that is the industry’s only business-to-TMS integration toolkit.
- The 3Gtms Visibility Platform gives you the ability to translate and share information from shippers, carriers, mobile applications, financial systems, emails, portals and more, providing a critical piece to control tower initiatives and resulting in clearer insight through visibility-driven workflows.
Contact us for a complimentary consultation today.
¹ Gartner “Magic Quadrant for Transportation Management Systems” by Bart De Muynck, Brock Johns and Oscar Sanchez Duran, March 27, 2019.
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.