Today, the logistics industry needs new technologies more than ever. Supply chains are constantly becoming more complex, suffering from capacity shortages, suffering the shocks of the corona crisis and the first major war in Europe in 80 years. Business is forced to look for new solutions.
One of the key IT tools for the development of logistics today is the transport management system (TMS) software. It is a platform for automating and optimizing the management of any transport involved in the supply chain. TMS system helps to manage various aspects of transportation – order processing, organization, management, monitoring of deliveries at all stages.
The economic and social upheavals of recent years have significantly increased business interest in IT. According to ResearchAndMarkets.com, the global market for transport management systems will reach $21 billion by 2027. In the next five years, it will grow at an average annual growth rate of 17%.
What are the benefits of TMS
The transport management system allows operators to take advantage of a single database, plan the best routes for the fleet and instantly update them, monitor the work of personnel, vehicle conditions and fuel consumption. We can talk about the following key advantages of TMS:
- Reduced transport costs
- Acceleration of work processes and delivery itself
- improving the safety of imported goods
- Extensive opportunities for monitoring, analytics, process forecasting
- Improved customer experience for end users
Transport management systems market
Today, the global market for TMS systems is at a low start. In the past two years, its explosive growth has been held back by the economic impact of the pandemic. Often, a business simply could not invest in the development of new tools, because it was focused on its own survival. But now the rapid growth of eCommerce and medTech is opening up new vistas for this segment.
A significant share of the TMS market is “boxed” solutions. Services that are distributed according to the SaaS model, where the operator gets access to the platform by subscription, for a monthly fee. This model has significant advantages: it is simple and affordable, you can set it up in just a couple of days, and the investment at the start is minimal. But not everyone is satisfied with the functionality of the boxed platform, in which it is impossible to foresee the specifics of a single business.
An alternative to SaaS solutions is custom software development. It will require significant investments at the start, but it will respond well to specific business requirements, be flexible and have broad prospects for further development.
One of the main limiting factors in the development of the TMS market today is the high cost of such development. But experience shows that with the right approach, investments in such a platform quickly pay off. Much depends on the competence of the developers – it is important not to miscalculate the choice of an outsourcer.
The Ukrainian company WEZOM can share successful development cases in the logistics industry in the markets of Ukraine and the USA. You can read more about the company on our website https://wezom.com/. We develop software for businesses and startups. Contact us! We are ready to study your business and offer the best digital solutions for it.