TMS adoption among small- to mid-sized companies

Higher TMS adoption among small- to mid-sized companies

Historically, TMS adoption rates for smaller shippers has hovered in the 10% range, according to industry insiders while about 25% of medium-sized firms and 50% of large organizations used the application to manage their freight activities.

These adoption rates are now rising thanks to the fact that most TMS is now available in the Cloud and on a subscription-based model. “Recently, we’ve seen about 15% growth in TMS usage within small- to mid-sized businesses market, with some vendors reporting more than 20% growth for that market,” says one analyst, who attributes these increases to the fact that TMS is now within the grasp of much smaller shippers.

Other key drivers include higher transportation costs – mainly caused by driver shortages – and the ongoing need “to be smarter about how you run your transportation,” the analyst. “For their customers, shippers need to be able to provide more visibility tools and more analytical capabilities. These factors are also driving higher TMS adoption.”

ShippersEdge noted that increasingly their calls are coming from companies who have stated “We need to save the 13% our 3PL is marking up our shipping costs. These clients often need assistance setting up direct rates with carriers and ShippersEdge has offered valuable assistance.

Excerpts from Supply Chain 24/7