Transportation Management Systems (TMS) are software solutions designed to streamline and optimize transportation operations for businesses. TMS solutions have gained significant popularity in recent years due to their ability to improve supply chain visibility, reduce transportation costs, and enhance overall efficiency.

In this blog post, we will explore TMS statistics that demonstrate the growing importance and impact of TMS in the logistics industry.

Key Transportation Management Systems (TMS) Statistics 2023 – MY Choice


  • The global Transportation Management System market size is expected to reach $19.2 billion by 2025.
  • In 2019, the TMS market size was estimated at $3.86 billion.
  • The TMS market is expected to grow at a CAGR of 16.2% from 2020 to 2027.
  • The adoption rate of TMS is increasing by approximately 8.8% annually.
  • According to a survey, 23% of companies plan to implement a TMS within the next two years.
  • 61% of companies implement a TMS to reduce transportation costs, while 55% aim to improve supply chain visibility.
  • The average time it takes to implement a TMS is 4-6 months.
  • TMS users report an average reduction of 5-10% in transportation costs.
  • TMS solutions can increase productivity by 25-50%.
  • 55% of TMS users report improved supply chain visibility.

TMS Stats

Transportation Management Systems (TMS) Market Statistics

Market StatisticValue
Market size in 2019$5,467 million
Market size in 2020 (post-COVID)$5,968 million
Market size in 2025 (projected)$19.2 billion
CAGR 2020-20279.6%
CAGR 2020-202518.2%
Adoption rate increaseApproximately 8.8% annually
Market concentrationMajor players consume 40-45% of the market share
Top vendorsSAP, Oracle, JDA Software, MercuryGate, and Manhattan Associates

Transportation Management Systems (TMS) Adoption Statistics

Adoption StatisticValue
Companies planning to implement TMS in next 2 years23%
Reason for implementation: reduce transportation costs61%
Reason for implementation: improve supply chain visibility55%
Average implementation time4-6 months

Transportation Management Systems (TMS) Integration with Other Technologies

IntegrationBenefit
Warehouse management systems (WMS)Optimization of inventory management
Enterprise resource planning (ERP)Facilitation of data sharing
Electronic data interchange (EDI)Improved communication and collaboration between supply chain partners

Transportation Management Systems (TMS) Trends and Future Outlook

TrendImpact
Asia-Pacific TMS adoption growthHighest growth rate in TMS adoption
Cloud-based TMS solutionsIncreasingly popular due to flexibility and scalability
Artificial intelligence (AI) and machine learning (ML)To further enhance TMS capabilities
Small and medium-sized businessesExpected to adopt TMS solutions more widely

TMS Market Size and Growth

The TMS market has grown significantly in recent years and is expected to continue to expand in the coming years.

  1. The global Transportation Management System market size is expected to reach $19.2 billion by 2025.
  2. In 2019, the TMS market size was estimated at $3.86 billion.
  3. The TMS market is expected to grow at a CAGR of 16.2% from 2020 to 2027.

TMS Adoption and Implementation

More and more businesses are recognizing the value of TMS solutions and are implementing them in their operations.

  1. The adoption rate of TMS is increasing by approximately 8.8% annually.
  2. According to a survey, 23% of companies plan to implement a TMS within the next two years.
  3. 61% of companies implement a TMS to reduce transportation costs, while 55% aim to improve supply chain visibility.
  4. The average time it takes to implement a TMS is 4-6 months.
  5. The top TMS vendors in the market are SAP, Oracle, JDA Software, MercuryGate, and Manhattan Associates.

TMS Benefits and Impact

TMS solutions provide a range of benefits to businesses, including cost savings, improved efficiency, and enhanced visibility.

Cost Savings

  1. TMS users report an average reduction of 5-10% in transportation costs.
  2. The use of TMS can lead to a 30% reduction in administrative costs.
  3. 74% of companies that implement a TMS report a positive return on investment (ROI) within one year.

Efficiency and Productivity

  1. TMS solutions can increase productivity by 25-50%.
  2. Businesses that use TMS solutions can reduce the time spent on manual processes by up to 90%.
  3. The use of TMS can lead to a 50% reduction in shipment processing time.

Visibility and Control

  1. 55% of TMS users report improved supply chain visibility.
  2. TMS solutions can provide real-time tracking and monitoring of shipments.
  3. TMS solutions can help businesses identify and address bottlenecks in their transportation operations.
BenefitStatistic
Cost-effective shipping optionsTMS provides an extra opportunity to find the most cost-effective shipping options, and with e-commerce affecting 96% of all shippers, the need to leverage the benefits of e-commerce and TMS connectivity
Administrative cost reductionThe use of TMS can lead to a 30% reduction in administrative costs
Positive ROI74% of companies that implement a TMS report a positive return on investment (ROI) within one year
Increased productivityTMS solutions can increase productivity by 25-50%
Reduced manual processesBusinesses that use TMS solutions can reduce the time spent on manual processes by up to 90%
Shipment processing time reductionThe use of TMS can lead to a 50% reduction in shipment processing time
Improved supply chain visibility55% of TMS users report improved supply chain visibility
Bottleneck identificationTMS solutions can help businesses identify and address bottlenecks in their transportation operations

TMS Integration with Other Technologies

TMS solutions can be integrated with other technologies to further enhance their capabilities and impact.

  1. TMS solutions can be integrated with warehouse management systems (WMS) to optimize inventory management.
  2. TMS solutions can be integrated with enterprise resource planning (ERP) systems to facilitate data sharing.
  3. The use of TMS and electronic data interchange (EDI) can lead to improved communication and collaboration between supply chain partners.

TMS Trends and Future Outlook

The TMS market is constantly evolving, and businesses need to stay up-to-date with the latest trends and developments.

  1. The Asia-Pacific region is expected to see the highest growth rate in TMS adoption in the coming years.
  2. Cloud-based TMS solutions are becoming increasingly popular due to their flexibility and scalability.
  3. TMS solutions are incorporating artificial intelligence (AI) and machine learning (ML) to further enhance their capabilities.
  4. The use of TMS solutions is expected to become more widespread in small and medium-sized businesses.

Conclusion

The above TMS statistics demonstrate the significant impact and importance of TMS solutions in the logistics industry. Implementing a TMS can provide businesses with a range of benefits, including cost savings, improved efficiency, and enhanced visibility.

As the TMS market continues to grow and evolve, businesses need to stay up-to-date with the latest trends and developments to remain competitive and efficient in their transportation operations.

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