Transport management is gaining strategic importance

Descartes Systems Group, a leading software-as-a-service provider for logistics companies, has published the results of its ninth annual global benchmark survey on transportation management. For the study, Descartes and SAPIO Research surveyed 616 participants, consisting equally of logistics service providers (brokers, carriers, and 3PL providers) and shippers (manufacturers, distributors, and retailers) from a wide range of industries. The aim of the survey was to assess the current role of transportation management, identify the most effective technologies and competitive strategies, and provide an outlook on future investments in transportation IT. Respondents came from the US, Canada, and Western Europe.

Transportation no longer just a cost factor

The study shows that 81 percent of the more than 600 shippers and logistics service providers surveyed consider transport management to be a distinguishing feature or strategic competitive advantage. This is the highest figure since the study began and shows how much transport management now contributes to corporate development and customer satisfaction. At the same time, the proportion of those who consider transport to be merely a basic service or unimportant has fallen to 19 percent, reaching its lowest level since the survey began.

«This year's survey clearly shows that transportation is no longer seen as just a cost factor in companies, but increasingly as a strategic driver for customer value and business growth,» says Mike Hane, Director of Product Marketing for Transportation Management at Descartes, adding: «According to the survey results, this shift is being supported by increased investment in transportation management systems (TMS): Companies are striving to integrate automation and AI even more closely into their transportation management processes in order to increase performance and add value.»

Digitized processes: Still room for improvement

Although the freight forwarders and logistics service providers surveyed increasingly recognize TMS as an essential solution in modern technology landscapes, there are still significant gaps in automation and digital maturity. Only 17 percent of respondents have fully automated their processes, while more than a third rely heavily or predominantly on manual processes. This digital divide is particularly pronounced between companies with industry-leading financial performance (51 percent fully automated) and those with below-average financial performance (five percent fully automated). The latter lag significantly behind in terms of automation, AI usage, and growth expectations.

The use of generative AI shows a very high level of activity: 96 percent of all respondents use it in their operations. The three most common use cases are data entry (41 percent), route and load optimization (39 percent), and AI-supported freight forecasts and automated load allocation and capacity planning (35 percent each). The few companies (4 percent) that do not use generative AI tend to classify transport management as a mandatory function and are more likely to expect little to no growth in the next two years.

Willingness to invest in logistics IT

Other key findings of the study include increasing TMS investments, a greater focus on security, and positive growth prospects: 80 percent of respondents plan to increase IT spending on TMS, with a focus on performance management, transparency, and fleet control. Monitoring carriers and freight forwarders (insurance, security, fraud prevention) is one of the most important TMS functions, with respondents from North America rating this function seven percent higher than their European counterparts. Overall, 72 percent of companies expect annual revenue growth of at least five percent within the next two years.

Source: Descartes

This article originally appeared on m-q.ch - https://www.m-q.ch/de/transportmanagement-gewinnt-an-strategischer-bedeutung/