No longer a stand-alone tool for routing and carrier selection, the TMS is fast becoming a central communications hub whose spokes extend deep into the supply chain ecosystem. That’s good news for shippers.
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.
Booking a freight shipment in 2021 is perhaps tougher than it’s ever been, thanks to disruptions like pandemic closures, port congestion, trucking capacity shortages, and fallout from the Suez Canal blockage.
Fortunately, the tools that support the freight-booking process are also better than they’ve ever been. Thanks to a burst of innovation in the logistics tech sector, a host of powerful new tools—such as real-time tracking apps and digital freight-matching (DFM) platforms—are now widely available to shippers, carriers, and brokers alike. Pick the type of tool you need, and you can probably choose from a half-dozen products offered by proven, time-tested vendors.
In fact, the wealth of options has led some users to complain of “app fatigue.” Others struggle to keep track of data while working on multiple platforms—whether it’s booking loads, exchanging digital documents, or tracking payments. That process can be further complicated by differences in terminology used by the various platforms—one app’s “ship day” might be another’s “departure day” or “transit day.”
Those challenges have led to the broader deployment of application programming interfaces (APIs) that allow apps and platforms to share data directly, communicating faster and more accurately than people at keyboards ever could. That tight mesh of machines now lets users funnel their fractured data into a single channel, using a transportation management system (TMS) as the common hub.
TMS vendors say the leading products on the market today serve as “command central,” with spokes that extend into a variety of specialized software applications. That helps streamline the search for freight capacity, allowing users to go to a single TMS application instead of logging onto half a dozen freight-matching services or carrier/broker websites. “What technology is trying to accomplish today is to make the whole experience more enjoyable,” says Mark Ford, chief operating officer of BlueGrace Logistics, a third-party logistics service provider (3PL) that offers a TMS product called BlueShip TMS. “Shippers or carriers connect directly to us, and we need to provide a [simple, streamlined] experience.”
THE PUSH FOR ONE-STOP SHOPPING
Just three to five years ago, most TMS platforms were bare-bones affairs that mainly facilitated the freight tendering process, Ford says. In those days, options like real-time tracking, automated paperwork sharing, and accurate pricing tools weren’t generally available.
Fast forward to 2021, and the modern TMS provides all three of those services—and many more—through connections with multiple freight apps that aggregate data from a vast number of sources.
Those connections are growing by the day. For instance, BlueGrace in July partnered with the digital freight-matching specialist Uber Freight, which had recently expanded into the less-than-truckload market, building links to the online broker’s technology infrastructure.
As TMS platforms evolve to meet more complex user demands, the logistics sector is following a path previously traveled by the financial services industry, says Azad Ratzki, BlueGrace’s chief technology officer. “Logistics today has a lot of similarities to fin-tech 20 years ago in terms of its software infrastructure as it improves ease of use, analytics, and reporting functions,” he says. “Ten years ago, [TMS products emphasized] function over form, but now people expect both.”
That trend has created growing expectations among TMS users of being able to connect to any visibility or freight-matching service without leaving the application, says Robert Brothers, manager of product development for TMS vendor McLeod Software.
While that vision is not yet a universal reality, it’s getting closer by the day, Brothers says. “Data sharing among carriers and shippers has been going on a long time—for example, when you tender freight or provide shipment status. But our role now is to give our customers options,” like enabling even more data sharing, he says.
“Say our customer wants to be a ‘preferred carrier,’ Brothers adds. “For example, a carrier might say, ‘Our customer—a shipper—is on [the visibility platform] project44 and wants us to get connected.’ So, we make sure our systems connect to the visibility providers.
“We get requests all the time for new solutions—there are lots of mobile apps and telematics—so our task is [to figure out] how to allow them to come into our ecosystem,” Brothers says.
At the same time, McLeod has been working to give its shipper clients access to a wider array of carriers. The company says it now supports connections to a half-dozen DFM platforms.
MAKING CONNECTIONS
Software developer MercuryGate International Inc. has taken much the same tack, says Steve Blough, the company’s co-founder and chief innovation officer. Like other big market players, MercuryGate has been expanding its network in order to give clients more transport options—a major consideration in light of recent moves by UPS Inc. and FedEx Corp. to cap the number of parcels they’ll accept from a shipper, he notes.
The additional connections can also help users deal with the supply chain disruptions that increasingly pop up in specific—and unpredictable—parts of the country. “It used to be a full market thing; if rates were high, they’d be high everywhere,” Blough says. “But now, it’s very much in certain lanes.”
To help its clients navigate these complexities, MercuryGate has upped its connectivity game. For example, in April, it acquired the last-mile delivery optimization specialist Cheetah Software Systems in a bid to bolster services for its e-tail clients. In 2019, the company integrated its TMS with Uber Freight’s digital freight brokerage platform in order to offer users greater visibility and access to capacity. That move was critical in an age when changing consumer behavior and driver shortages have made finding capacity more complex than ever, says Kathryn Buchanan, MercuryGate’s VP of product marketing.
MercuryGate today combines those expanded features—along with inputs from several other digital freight brokers, contract fleets, couriers, and even private fleets—to provide a better freight-matching experience for all concerned, she says. Thanks to these links, the now-hyperconnected TMS can generate results from more sources than ever, helping connect shippers and carriers in a tumultuous time.
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 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.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.