TMS market showing strong post-recession rebound, says ARC Advisory Group

By Jeff Berman, Group News Editor
May 07, 2012 - LM Editorial

New research from Dedham, Mass.-based ARC Advisory Group indicates that the transportation management system (TMS)  market has “bounced back strongly.”

ARC defines the functionality of TMS systems as helping companies efficiently, reliably, and cost-effectively moving freight from origin to destination. And the firm classifies TMS into two primary application areas: planning & execution, which is a TMS designed for freight moves involving a carrier, and fleet management, which is for freight moves involving transportation assets owned by a company.

Looking at the North America TMS market, ARC said that revenues has bounced back strongly since the end of the recession, with pent-up demand leading to robust growth next year, which will then be declining to historical growth rates. But in Europe, the forecast is less optimistic due to its high potential to return to a recession. ARC expects European TMS revenues to decline for the next two years. ARC also noted that the TMS market is seeing growing demand in Latin America, too.

In an interview with LM, Steve Banker, Ph.D., ARC Service Director for Supply Chain Management explained that the biggest drivers for TMS are the aforementioned pent up demand from the recession and TMS providing a better ROI for new verticals.

“Planning & execution [TMS] outpaces fleet management because fleet is a much more mature market,” he said.  “Maturity probably reflects the fact that if you own trucks and you want to improve productivity, this is one of the best things you can do.  But in P&E it I want to reduce freight spend I have two big choices, outsource or buy TMS.”

While he could not disclose a specific figure for projected TMS growth rates in North America, Banker did say that overall growth is in the double-digit ranges, but the fleet market is not growing at double-digit rates.



About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Modern Materials Handling magazine

Subscribe today. It's FREE!
Find out what the world's most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Recent Entries

Instead of ignoring a forklift fleet and its associated costs, asking the right questions can lead to substantial savings.

This white paper outlines five ways to increase profits with automation. By implementing automated storage and retrieval equipment-such as horizontal carousels, vertical carousels and vertical lift modules, multiple areas of a manufacturing or distribution facility will benefit from savings in inventory accessibility, floor space, time, improved ergonomics and better accuracy.

Zebra gains instant access to complimentary technologies. But first, it needs to integrate a former partner that is 2-1/2 times its size.

Distribution requirements are changing. Few distribution managers would quibble with that statement. The increase in the demand for mixed cases, mixed cartons, aisle ready pallets and, most importantly, the increase in the volume of e-commerce orders is driving new levels of investment in automation.

MDT works with Mitsubishi Electric to ensure technical competence in providing change management support for Mitsubishi Electric Automation products.

About the Author

Jeff Berman, News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman.

Comments

Post a comment
Commenting is not available in this channel entry.