Today's transportation software can help you pick the best carrier, rate, and route. Tomorrow's will be able to do it faster and better—and remove humans from the decision-making loop.
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Moving freight is a complex business, and variables like rates, reliability, and capacity can change with the weather, the season, or the latest retail craze. In an effort to get the most from their freight transportation dollar, many companies turn to transportation management systems (TMS).
A good TMS tracks dozens of key performance indicators (KPIs) so users can weigh the variables and pick the optimal carrier, rate, and route. But what if a TMS could leverage the power of big data and ultra-fast processors to remove humans from the decision-making loop? Such a system could analyze far more variables than any human could handle, refresh its records with real-time data, quickly calculate the optimal shipping method, and even act on its findings.
That vision is quickly becoming a reality, thanks to the power of computer analytics, experts say. Adding embedded analytics to a TMS platform allows shippers, brokers, and carriers to make decisions based on the data they're actually collecting, not just on the trends they think they see, said Monica Wooden, chief executive officer (CEO) and co-founder of MercuryGate International Inc., a TMS provider based in Cary, N.C. "We're seeing this really evolve," Wooden said. "More and more every year, it's getting more robust and real time. And that allows everybody to benefit."
RISING DEMAND FOR ANALYTICS
As is so often the case today, the rising interest in advanced analytics has a lot to do with the e-commerce explosion. Retailers face mounting pressure to meet escalating demands for next-day delivery and omnichannel fulfillment, both of which carry significant costs, Wooden said. In response, logistics executives and chief information officers are pushing for greater use of data-driven technologies like business intelligence and data analytics to help trim time and cost from their supply chains.
The fast growth of sophisticated inventory-tracking networks has given them the reams of raw data necessary to achieve that objective. By pulling data from smartphone apps, global positioning systems (GPSs), and electronic logging devices (ELDs), supply chain practitioners can quickly determine a shipment's precise location and its delivery status.
But the possibilities go well beyond tracking. "It's not just improved productivity, but true decision-making," Wooden said. "With embedded analytics, you can take empty miles out of the supply chain, work with people in certain lanes, make sure containers are full, and generally help the world be a better place."
For example, embedded analytics could help a TMS automatically book space on a preferred carrier in the Atlanta-Tampa (Fla.) lane, then revert to a second choice if the first carrier doesn't have the needed capacity, she said. Or it could suggest efficiency enhancements—such as showing that a carrier would save money by making multiple stops along its delivery route, instead of scheduling multiple trips with partially filled trucks.
That's not to say that only automated systems can make these determinations. People working in manual transportation operations make similar kinds of judgments all the time. The benefit to using a TMS to handle basic decisions is that it frees up human specialists for more nuanced decision-making, according to Wooden. An automated TMS would not replace human employees, but enable them to concentrate on more advanced tasks, she said.
CLEAN DATA REQUIRED
Wooden is not alone in her assessment. Adding embedded analytics or "machine learning" capabilities to logistics software will reinforce, not replace, the supply chain workforce, agrees Eric Gilmore, CEO of Turvo, a collaborative logistics platform provider.
"The value of machine learning is to augment human intelligence and make people super-human," Gilmore said. He cautioned, however, that this requires a certain amount of database maintenance and upkeep on the user's part. Adding artificial intelligence to a TMS will not produce decent results unless the software includes accurate, recent data, he warned. Most businesses keep databases full of unstructured information, which include duplicate entries that can cause database chaos.
"You need good 'data hygiene'," Gilmore said. "You really have to feel that data is strategic to your business, and you need data scientists to cleanse it. You can't even talk about making a machine smart if you don't do that first. It's like the old saying: 'Garbage in, garbage out.'"
Companies are now starting to realize that they can't manage warehouses full of inventory without hiring data scientists to manage databases full of information, according to Jim Vrtis, chief technology officer of New Plymouth, Idaho-based trucking loadboard provider Truckstop.com.
"Data is the fuel for a good algorithm, which drives machine learning," Vrtis said. "We're past the time when it was just important to store the data in a database. We now have to understand it and leverage that information to make better decisions."
That's where data specialists can help. "A good data scientist can draw conclusions from the data that are impactful and actionable," said Vrtis. "It's almost like the gold rush. People say, 'I have a lot of data; now I need to hire a data scientist to come analyze it, so I can find the gold and make money.'"
A NEED FOR CREATIVE SOLUTIONS
The best TMS platforms allow users to be creative and flexible in making better decisions and saving money, said Mitch Weseley, CEO of Shelton, Conn.-based TMS provider 3Gtms.
That need is particularly important in light of changes in the TMS customer base, Weseley said. Twenty years ago, big shippers dominated the market, accounting for the majority of TMS sales. Today, however, most of the demand comes from small and mid-sized shippers and third-party logistics service providers (3PLs), he said.
"Creativity is so important. Both shippers and 3PLs have more levers they can pull nowadays," Weseley said. "You can't look at all the options and manually figure it out. So a TMS frees people up to do the things that can't be automated."
With tools like improved algorithms, robust database-building capabilities, and embedded analytics, software providers can help TMS users reach new levels of creativity, industry experts said.
"Those things empower today's [practitioner] to handle more freight, be more efficient, be more productive, and grow the business," Truckstop.com's Vrtis said. "They can spend less time connecting the dots and begin to take a tactical approach to freight matching and to improving service levels. I think it's going to be really fun to see."
Powered by embedded analytics, technology could soon help solve many of the problems that vex the logistics industry today. "This journey is at Day Zero in terms of what's possible in building intelligent software that makes the human smarter," Turvo's Gilmore said. "And supply chain is the most fascinating application for these techniques."
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The U.S. manufacturing sector has become an engine of new job creation over the past four years, thanks to a combination of federal incentives and mega-trends like nearshoring and the clean energy boom, according to the industrial real estate firm Savills.
While those manufacturing announcements have softened slightly from their 2022 high point, they remain historically elevated. And the sector’s growth outlook remains strong, regardless of the results of the November U.S. presidential election, the company said in its September “Savills Manufacturing Report.”
From 2021 to 2024, over 995,000 new U.S. manufacturing jobs were announced, with two thirds in advanced sectors like electric vehicles (EVs) and batteries, semiconductors, clean energy, and biomanufacturing. After peaking at 350,000 news jobs in 2022, the growth pace has slowed, with 2024 expected to see just over half that number.
But the ingredients are in place to sustain the hot temperature of American manufacturing expansion in 2025 and beyond, the company said. According to Savills, that’s because the U.S. manufacturing revival is fueled by $910 billion in federal incentives—including the Inflation Reduction Act, CHIPS and Science Act, and Infrastructure Investment and Jobs Act—much of which has not yet been spent. Domestic production is also expected to be boosted by new tariffs, including a planned rise in semiconductor tariffs to 50% in 2025 and an increase in tariffs on Chinese EVs from 25% to 100%.
Certain geographical regions will see greater manufacturing growth than others, since just eight states account for 47% of new manufacturing jobs and over 6.3 billion square feet of industrial space, with 197 million more square feet under development. They are: Arizona, Georgia, Michigan, Ohio, North Carolina, South Carolina, Texas, and Tennessee.
Across the border, Mexico’s manufacturing sector has also seen “revolutionary” growth driven by nearshoring strategies targeting U.S. markets and offering lower-cost labor, with a workforce that is now even cheaper than in China. Over the past four years, that country has launched 27 new plants, each creating over 500 jobs. Unlike the U.S. focus on tech manufacturing, Mexico focuses on traditional sectors such as automative parts, appliances, and consumer goods.
Looking at the future, the U.S. manufacturing sector’s growth outlook remains strong, regardless of the results of November’s presidential election, Savills said. That’s because both candidates favor protectionist trade policies, and since significant change to federal incentives would require a single party to control both the legislative and executive branches. Rather than relying on changes in political leadership, future growth of U.S. manufacturing now hinges on finding affordable, reliable power amid increasing competition between manufacturing sites and data centers, Savills said.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.