Globalization, on-demand model push TMS adoption
Staff -- Purchasing, 3/16/2006 2:00:00 AM
The market for transportation management systems (TMS) continues to grow as more companies leverage the systems for sourcing transportation services and tracking shipments. AMR Research says 30% of manufacturers and distributors are currently using or implementing TMS software, another 30% were planning or willing to consider TMS in the next 12-18 months.
And ARC Advisory Group says: "Over the past seven years, the goals of TMS end users have remained relatively the same—reduce costs and improve service levels. But the technology/vendor landscape has changed significantly.
ARC says on-demand TMS is seeing strong growth: "While license fees have remained flat the past couple of years, revenues from subscriptions, transaction fees, and other recurring streams have experienced double-digit growth.".
Forrester Research recently evaluated TMS providers across 200 criteria and found "Manhattan Associates, Oracle's G-Log, and i2 lead in functional offerings, but SAP has made significant progress to catch up. And with G-Log's functionality and its global reach, Oracle has the potential of dominating the [TMS] space."
AMR says advanced procurement and carrier assignment execution compliance with a TMS can yield users 5-15% savings off their freight budget, especially if there is a large amount of LTL movement.
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