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David Hannon, Associate Editor -- Purchasing, 9/2/2004 2:00:00 AM
While the top transportation management systems (TMS) providers struggle, the ERP compa-nies are increasing their stake in the TMS market. The market for TMS grew only 1.5% in 2003, hindered significantly by the financial struggles of its leading providers, but with the top three TMS providers removed from the equation, the market shows healthy growth of 10.6%.
According to Adrian Gonzalez, director of the Logistics Executive Council at ARC Advisory Services, TMS providers are seeing growing acceptance of subscription-based pricing and on-demand deployments as well as increasing obsolescence of traditional, batch-oriented optimi-zation tools. ARC’s latest report says although ERP providers have historically lagged behind the best-of-breed players in terms of functionality, the gap is beginning to close. “Some companies are already planning to replace their best-of-breed TMS with an ERP offering,” says Gonzalez. “If this practice becomes widespread, how can best-of-breed vendors continue to compete?”
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