Transport software solutions add up to the productivity of the logistics companies this is a fact everybody agrees with. The question is how much? On an average up to 35% cost savings are observed within first 6 months of opting for the transport software solution. Can these saving be increased? Definitely. How? By adapting to the latest trends in the transport industry which are meant to speed up the functioning without much investment in the infrastructure.
Transparency Market Research (TMR) has published some vivid projections in its report “Transportation Management Systems Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 – 2022”. The report states that the TMS is going to develop a double figure CAGR of 12.20% in the stated duration ending the year 2020 at US$19.2 in terms of the global market. The stated rise is the result of an increase in intermodal transportation, e-commerce segment, and stable economy. According to the above-mentioned TMR report, the on-demand SAAS-based TMS services are going to observe a sharp rise in near future as compared to the on-premise services.
A small ELD in place, a simple GPS tracking app, Yard navigation for driver’s assistance, real-time synchronization with load board, instant booking for carriers and EDI integration; transport software solutions have come far ahead from these basics. Now the TMS can give you a broader perspective about your business by churning out the strategic reports based on your data to take your next move. And remember, there is nothing more valuable than a right move in business. And if you can make it at a right time, the results are even better. To facilitate you in taking your next strategic move, we are presenting here the top possibilities in 2016 where you can invest in a TMS. These trends are not only based on cutting edge technology, these are also meant to be the disruptors and market changes in future.
The decades-old method of deciding the shipping prices on the basis of freight classification is becoming an obsolete and paving way for dimensional pricing. The shippers need some solutions to measure the density of shipments by analyzing various factors ranging from the size of shipment to transit time and demand. The analysis is then used to decide the method by which transporting that shipment will be more profitable. This can be either using in-house carriers or a collaborative or outsourced service.
Big data Analysis
Conventionally, everything related to the payment including fees, duties and taxes are managed by the TMS for the logistics companies. But now these companies have also started to opt the Big Data Analysis services from the outsourced services which help them in taking better decisions by investing intelligently in the resources. A golden combination would be a TMS solution comprised of the big data analytical assistance which can improve and refine the decision-making process for the shippers.
One cannot end the discussion on Big Data analysis without speaking about collaborative methods used in logistics. The Big Data analysis have been increasing used by TMSs for inter-management of resources in logistics to increase the profitability of companies. The LTLs can be used to lend out the collaborative assistance to other Logistics companies which might not find it profitable to employ complete carrier on the same route.
FAST Act compliance measures
Fixing America’s Surface Transportation (FAST) Act was laid down by Obama government in 2015 and 2016 is looking to include the suggestions made in this Act. In the hind side, we can see that the availability of resources which will be coming through the FAST Act are going to change few crucial things for shippers. As much as it is going to contribute to the expansion of roads, building better transits to polarize the shipping trends it is also going to bring up few new taxes to compensate the deficit.
IOT is increasingly finding its relevance in the logistics industry and TMS software solutions are picking up to utilize this technology to the fullest. According to a prediction made by Gartner, 25 billion sensor devices will be connected by IOT by 2020. The Connected Vehicle Field Infrastructure Footprint Analysis by American Association of State Highway and Transportation Officials (AASHTO) reinstates the fact that the highway transportation can be made much safer thereby reducing crashes when vehicles can adjust to surrounding threats. The information can be carried and conveyed between the carriers via M2M connected system.
Cloud solutions are making the 24/7 shipping business more robust and seamless by making crucial resources available to anyone beyond geographical and operational limitations. It has already penetrated to almost 93% of businesses in one way or the other. With the help of cloud solutions, logistics transportation industry is able to become more robust and dynamic from the earlier setups which are way more rigid to change. This helps the logistics companies to move faster and for longer time period.
Mobility is becoming the game changer for last mile deliveries. According to the VDC research shippers are taking mobility solutions way too seriously than expected. 63% of the logistics companies are using mobile TMS applications for GPS & real-time routing. The industrial inclination towards mobile TMS solutions can be further assessed with data of 55% companies using it for dispatch and scheduling, 55% for parcel delivery tracking, 51% & 42% for proof of delivery and telematics respectively. Even the lowest usage for customer service engagement stands at a fair adoption by 39% companies.
The tradition markets of exports from Asia to North America or Europe are not the only ones for transport industry now. There are more dynamic markets emerging in South Africa and MEA (The Middle East & Africa), which have a higher propensity to adopt the latest technology advancements as the industry is not rigid. The preferences and growth for the Transport Management System (TMS) which can provide services based on these emerging trends will automatically have an upper hand in market competition for these markets. Few cost intensive and fairly advanced trends such as driverless automobiles enabled by various transport software are also finding a viable place and market in these economies.
With the help of e-commerce boom and a new method for delivery i.e. Omni-channel delivery model logistics industry is looking forward towards an optimistic economy. This gives them the crucial impetus needed to try and test few of the most promising technologies and become a pioneer in changing the age-old business practices. DreamOrbit is also trying to introduce some innovative solutions for the transport industry. The above-mentioned trends are few of such trends which hold promising future for the transportation industry with the potential to reinvent the existing transportation management systems.
DreamOrbit is a Logistics and Supply Chain Technology Development company. We have been creating meaningful and reliable software products for the industry which is “Always on the go” for the past half decade. We are highly motivated team aimed at innovation. Our philosophy is to “keep challenging the potential within”. With the support of our happy customers and dedicated team, we strive to provide best possible solutions to industry problems. Visit our website to know more about DreamOrbit.