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Home » New TMS users looking at 8% savings: Oracle executive

New TMS users looking at 8% savings: Oracle executive

October 4, 2010
Mark B. Solomon
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New users of Web-based transportation management systems (TMS) can expect, on average, to achieve savings of 8 percent through operating efficiencies, according to a top transportation executive at tech giant Oracle Corp.

John Murphy, senior director, transportation and logistics, said studies show that 42 percent of new TMS users can shave costs by between 6 and 10 percent, putting the median savings at 8 percent.

According to Oracle market share data, the TMS market is fragmented. Murphy says his company controls 20 percent of the TMS market, the largest share of any one company. However, the category of "all others" controls 43 percent of the TMS r market, according to Oracle data.

Murphy's presentation focused on the pros and cons of outsourcing transportation functions to a third-party logistics service company as opposed to managing the process internally through a TMS. Murphy said both options offer value, and that there is no right or wrong approach. "It very much depends on your business," he said.

Murphy cited networking giant Cisco Systems Inc. as an example of a company that has adopted a kind of hybrid approach. While Cisco kept its network of 3PLs, it also brought in a TMS that it operated through its third-party partners, Murphy said.

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Marksolomon
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.

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