Transportation Management System Market Bounces Back from Recession
Dedham, Massachusetts; April 28, 2011: The Transportation Management Systems (TMS) market has bounced back after the global recession. In 2010, the market grew significantly faster than the rate of inflation. Significant growth is forecast through 2015.
“Multitenant solutions that leverage the network remain a key growth driver for this market,” according to Steve Banker, Service Director for Supply Chain Management at the ARC Advisory Group. Steve (email@example.com) is the principal author of ARC’s “Transportation Management Systems Worldwide Outlook: Market Analysis and Forecast through 2015” (www.arcweb.com/res/tms).
ARC segments the TMS market into three application areas. “Planning & Execution” solutions are end to end transportation systems used by shippers who utilize carriers to move their freight. “Fleet Management” is an end to end solution for shippers/carriers that own transportation assets and need to manage those assets efficiently and effectively. “Point Solutions” include any systems that cover only a part of the end to end transportation process.
Many people think of planning and execution systems when they think of TMS. This, indeed, is the largest and fastest growing part of the market.
Leverage the Network
Transportation is inherently a multi-partner collaborative endeavor. Net-worked style solutions, particularly SaaS solutions based on a multi-tenant architecture, facilitate:
There is some level of disagreement upon whether it is possible for a multitenant solution to be as functionally rich as traditional behind the fire-wall solutions. Most suppliers of networked TMS agree, tacitly or openly, that their solution is not as functionally rich as solutions from the leading behind the firewall planning and execution solutions.
However, two significant suppliers argue their networked solutions are just as functionally rich. Both say their architecture allows this. Meanwhile some of the leading suppliers in the market offer functionally rich solutions based on a single tenant architecture. Some of these large suppliers, such as Oracle, have partnered with network providers to allow execution to be based on a network solution provider, while planning will still reside behind the firewall. Oracle’s network partner is E2open.
For more information on this study, please visit www.arcweb.com/res/tms.
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