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TMS is driving forward

By David Maloney | July 27, 2015 | 8:03 PM | Categories: Material Handling, Supply Chain, Transportation

A research survey released earlier this month shows just how important transportation management has become. The survey, conducted by InMotion Global (the folks behind the AscendTMS transportation management system), reveals that the use of TMS has more than tripled in the last 10 years.

The report details that 54 percent of logistics professionals currently use transportation management software in some way. InMotion Global says that is up from only 15 percent in 2005. And to show further how TMS is growing, the research also explains that of the remaining 46 percent not currently using a TMS, more than half say that they expect to use transportation management software within the next 12 to 24 months.

 Among other findings taken from the report: 

  • The two most common reasons for not using a TMS are cost (43%) and complexity (32%).
  • Trucking companies were most likely to use a TMS if they had more than 20 trucks in service (89%). For those with under 10 trucks, the percent using a TMS falls to just 31%. For those with under 5 trucks in service TMS use was only 16%.
  • Shippers and manufacturers used a TMS system primarily for LTL shipments (47%). However, that number rises to 73% if the shipper moved an average of 30 or more truckload shipments per week.
  • Home-grown TMS systems accounted for 6% of TMS systems in use today, and 3% of survey respondents use a freight module as part of another system (such as an ERP or sales management system). 

 Clearly transportation management systems are playing a more crucial role than ever before in managing the flow of goods. Companies have learned through experience and through their competition that decisions need to be done in a smarter way using available data. A good TMS fills that role.

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