Transportation management systems (TMS) are playing an increasingly important role in supply chain management because "companies are no longer masters of their own destiny," says Adrian Gonzalez, an analyst with ARC Advisory Group. "They're de-pendent on their suppliers, service providers, customers and other parties that together enable their end-to-end processes."

Next generation TMS solutions enable that collaboration through Web-based platforms that provide real-time visibility along with modular and highly configurable applications that can be implemented in stages.

"However, the TMS market is consolidating," Gonzalez warns. "By 2004, many smaller players will be acquired by an ERP provider or 3PL; merge with one another; or go out of business."