Two Characteristics Make the Transportation Management Systems Market Unique
A transportation management system (TMS) helps companies efficiently, reliably, and cost effectively move freight from origin to destination. TMS encompasses solutions for moving freight in all modes and also includes intermodal movements.
The TMS processes include freight transported inbound or outbound, domestically or internationally, and using transportation assets the company owns (the fleet management segment) or are owned by an outside service provider (the planning & execution segment). The freight managed by a TMS ranges in size from parcels to bulk commodities.
The transportation management market has two interesting characteristics that distinguish it among enterprise software markets. First, the planning & execution application market segment generates a much higher percentage of revenues from SaaS. Potential customers are anxious to understand the pros and cons of SaaS in contrast to traditional behind the firewall applications. Secondly, managed services are becoming a significant revenue stream for certain leading TMS suppliers. Market share leadership looks very different when managed services are included.
Strategic Issues
With the global economic rebound, the TMS market has rebounded as well. In order to help their cause, suppliers must increase their value proposition to users.
- What trends are strengthening the TMS market? What do suppliers need to do to capitalize on those trends?
- What are the strengths and weaknesses of planning and execution solutions based on the architectural platform?
- What is the forecast for SaaS? Do potential customers understand the issues associated with SaaS?
- How can fleet management applications improve their value proposition?
- How are managed services impacting the market?
