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By apacciooutlook | Tuesday, October 22, 2019
FREMONT, CA: Technavio’s report titled ‘Global Transport Management System Market 2017-2021’ states that the global transport management system (TMS) market is expected to grow at a CAGR of 7 percent, reaching a value of USD 1,982 million by 2021.
Check out: Top Transport Management Solution Companies
The report categorizes the global TMS market into cloud solutions, maintenance solutions, professional services and on-premises solutions. Cloud solutions segment of TMS leads the market because of its cost-effectiveness and flexibility. The growth of the software as a service (SaaS)-based TMS solutions is leading to the rise of this segment of the market.
Reduction in the burden of TMS maintenance services is leading to an increase in the demand of the maintenance solutions service, offering opportunities for companies who specialize in providing these solutions. Apart from this, professional services firms play a huge role in this. Companies that do not have in-house experts to troubleshoot their front-line technical support rely on professional services. Trained experts from these firms provide technical support to such companies and keep their operations running.
The key influences behind the growth of TMS market are the high return on investment (ROI), improved process efficiency obtained by implementing TMS solutions, rebalancing of trade toward the east, increase in international trade, and requirements for multimodal TMS. The report highlights that the companies that have enlisted TMS solutions have constantly reported a higher ROI with lower freight costs, faster order-to-delivery cycle times, reduced compliance fines, lower inventory management costs, the ability to select better carrier rates, and less time spent on maintaining customs paperwork. Descartes, JDA Software, Manhattan Associates, Oracle are SAP are some of the companies, leading this growth.