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Today’s Shippers Demand Effective Transportation Management

In today’s complex supply chain landscape, effective transportation management is less an ambition than a necessity. As the logistics industry attempts to keep pace with rapid technological advancements, a dynamic regulatory environment, and ever-shifting market dynamics, the field of transportation management is working to keep pace with the constantly changing demands of a complex transportation sector. 

In hopes of better understanding what transportation management means in 2024, Supply Chain Now is partnering with innovative TMS provider RateLinx on an interesting research project: the TM Tech Survey 2024, which focuses on transportation management technology. 

But before we get there, let’s talk about why shippers in record numbers are demanding effective transportation management solutions. 

Three Reasons Shippers Require Effective Transportation Management

According to an analysis from Gartner, the global TMS industry is expected to reach $2.11B by the end of 2024, a 60% increase from the industry’s value in 2019. It’s clear that today’s shippers, operating in a world plagued by volatility and disruption, understand the value of transportation management. This section looks at three key reasons why today’s shippers require effective transportation management.

1: Enhanced Operational Efficiency

In 2024, transportation technology is indispensable for optimizing logistics operations. Today’s leading transportation management systems leverage real-time tracking, predictive analytics, and recent breakthroughs in artificial intelligence to streamline processes, improve route planning, and provide end-to-end visibility over increasingly complex supply chains. These tools increase efficiency throughout the transportation process but also give the shippers much-needed visibility and actionable solutions in times of supply chain disruptions. 

2: Regulatory Compliance and Sustainability

As domestic and international regulators pressure shippers and carriers alike to lower transportation-related emissions, transportation management systems are vital for businesses struggling to develop actionable strategies to reduce emissions output. Through industry partnerships and integrations, advanced transportation management systems help companies monitor and manage their carbon footprint, adhere to stringent environmental standards, and implement green practices. 

3: Meeting Evolving Consumer Expectations

E-commerce has intensified the demand for faster and more flexible delivery options. According to the Retail Industry Leaders Association, 90% of e-commerce consumers expect two or three-day delivery to be standard for online purchases. Transportation management solutions leverage granular, cloud-based tracking to optimize highly complex supply chain processes, thus enabling shippers to meet sky-high consumer expectations. Businesses and consumers can instantly access real-time package locations through these platforms. With transportation management, companies and consumers can have the visibility and accountability they need for effective parcel logistics. 

How Do You Use Transportation Management in 2024? 

As we advance through the end of the year and into 2025, the role of transportation management technology in powering supply chain success cannot be overstated. Embracing these innovations is essential for enhancing efficiency, ensuring regulatory compliance, meeting customer demands and making it easier for employees to achieve success each & every day. Supply Chain Now and RateLinx are surveying the state of transportation management technology to better understand how businesses adapt to these changes.

Participate in the survey here to share your insights and learn how others in the industry are navigating the current landscape. All responses are anonymous and the findings will be published in October 2024.

 

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