Skip to content
Search AI Powered

Latest Stories

newsworthy

power shift

A new study shows a significant shift occurring in the transportation management systems market. According to ARC Advisory Group, the top players in the marketplace are failing to respond to new trends in the industry and to growing competition from ERP (enterprise resource planning) vendors like SAP and Oracle.

The study says that due to the financial struggles of the top three vendors, the overall TMS market grew just 1.5 percent in 2003, a much lower rate than forecast. However, when the leading vendors are removed from the equation, the rest of the market grew by 10.6 percent.


Clearly, the recipe for success in the TMS market is changing, creating challenges for established leaders and newcomers alike.

"There are several factors that are forcing TMS vendors to revisit their strategies and product development plans," says Adrian Gonzalez, director of ARC's Logistics Executive Council and author of the new study, Transportation Management Systems Worldwide Outlook. "These include the growing acceptance of subscription- based pricing and 'on demand' deployments; the obsolescence of traditional, batch-oriented optimization; and stronger competition from ERP vendors."

ARC is forecasting an annual growth rate in the TMS market of 7.1 percent over the next five years, to over $1.2 billion in 2008 from $873 million in 2003. The growing adoption of recurring revenue pricing models such as subscription fees is also affecting the market's growth rate. Recurring revenues grew by 9 percent in 2003 and have increased 27 percent since 2001, while both license fees and maintenance fees declined last year.

Externally hosted solutions accounted for almost 32 percent of TMS revenues last year, up from 28 percent in 2002. And although ERP vendors have historically lagged behind the best-of-breed players in terms of functionality, ARC says the gap is beginning to close.

"ERP vendors have certainly moved beyond the PowerPoint stage," says Gonzalez. "Some companies are already planning to replace their best-of-breed TMS with an ERP offering. If this practice becomes widespread, how can bestof- breed vendors continue to compete?"

The Latest

Artificial Intelligence

AI: Is it the real deal?

More Stories

Logistics economy picked up speed in January

Logistics Managers' Index

Logistics economy picked up speed in January

Economic activity in the logistics industry expanded in January, growing at its fastest clip in more than two years, according to the latest Logistics Managers’ Index (LMI) report, released this week.

The LMI jumped nearly five points from December to a reading of 62, reflecting continued steady growth in the U.S. economy along with faster-than-expected inventory growth across the sector as retailers, wholesalers, and manufacturers attempted to manage the uncertainty of tariffs and a changing regulatory environment. The January reading represented the fastest rate of expansion since June 2022, the LMI researchers said.

Keep ReadingShow less

Featured

Disrupting the furniture supply chain: An interview with Jay Rogers

Disrupting the furniture supply chain: An interview with Jay Rogers

As commodities go, furniture presents its share of manufacturing and distribution challenges. For one thing, it's bulky. Second, its main components—wood and cloth—are easily damaged in transit. Third, much of it is manufactured overseas, making for some very long supply chains with all the associated risks. And finally, completed pieces can sit on the showroom floor for weeks or months, tying up inventory dollars and valuable retail space.

In other words, the furniture market is ripe for disruption. And John "Jay" Rogers wants to be the catalyst. In 2022, he cofounded a company that takes a whole new approach to furniture manufacturing—one that leverages the power of 3D printing and robotics. Rogers serves as CEO of that company, Haddy, which essentially aims to transform how furniture—and all elements of the "built environment"—are designed, manufactured, distributed, and, ultimately, recycled.

Keep ReadingShow less
chart of GenAI effect on workforce

Gartner: GenAI tools create anxiety among employees

Generative AI (GenAI) is being deployed by 72% of supply chain organizations, but most are experiencing just middling results for productivity and ROI, according to a survey by Gartner, Inc.

That’s because productivity gains from the use of GenAI for individual, desk-based workers are not translating to greater team-level productivity. Additionally, the deployment of GenAI tools is increasing anxiety among many employees, providing a dampening effect on their productivity, Gartner found.

Keep ReadingShow less
warehouse worker driving forklift between racks

German 3PL Arvato acquires two U.S. logistics firms

The German third party logistics provider (3PL) Arvato this week acquired the U.S.-headquartered companies Carbel LLC and United Customs Services, saying the move would grow its client base, particularly in the fashion, beauty, and lifestyle segments.

According to Arvato, it made the move in order to better serve the U.S. e-commerce sector, which has experienced high growth rates in recent years and is expected to grow year-on-year by 5% within the next five years.

Keep ReadingShow less
photo collage of warehouse tech

Supply chain pros are wary of inflation and labor woes

The top worries that supply chain leaders hope to address with new innovations this year include inflationary concerns (68%) and labor shortages (50%), according to a survey on innovation from the third-party logistics provider (3PL) Kenco.

And many of them will have a budget to do it, since 51% of supply chain professionals with existing innovation budgets saw an increase earmarked for 2025, suggesting an even greater emphasis on investing in new technologies to meet rising demand, Kenco said in its “2025 Supply Chain Innovation” survey.

Keep ReadingShow less