It is anticipated that 2017 would be the year in which more shippers would embrace the TMS (Transport Management System). But considering the fact that the TMS adoption rates have remained fixed near 33 percent for nearly two decades, the anticipation looks rather hollow. Regardless of the figures, we can’t ignore the fact that the means of using TMSs are changing.
◼ Error in Historical Data on TMS Adoption
In 2008, statistics involving TMS adoption rates ranged from 20 to 30 percent reflects a percentage of the number of shippers involved in trade at that time. We should also consider that 2008 was a time when the deployment of cloud-based technologies had just begun. It is highly possible that some of the companies may not have understood survey questions and their applicability to existing operations.
Recession remains the another factor. Adoption rates may have been much higher if the recession had not occurred.
◼ Average of Above Average
33 percent adoption rate sounds little surprising. But that is a measure of appropriation over various organisations of various sizes. The estimated adoption rates are 10 percent for the 25 percent of medium-sized shippers and 50 percent of bigger associations. So there is definitely a progress but all we are seeing is an average.
◼ Decreased Introductory Investment and Deployment Costs
The lack of drivers and expanding weight from customers is constraining organisations to consider cutting wages or decreasing wasteful aspects wherever conceivable. Combined with the political change of 2016, the main arrangement will decrease wasteful aspects.
33-percent appropriation rates may seem small but it does imply that a bigger number of shippers are utilising TMS now if compared to 2008.