ARC’s definition of TMS is freight centric. ARC does not include solutions that help companies move passengers more efficiently and solutions for mail. Transportation management systems include two types of solutions: planning & execution and fleet management.
A planning & execution application focuses on freight moves involving a carrier. The complete process would include procurement, creation of a route guide, planning and optimization, electronic communication with carriers (tendering), visibility and exception management, freight audit, and performance management. For international shipments, it would also include advance shipment notification to government authorities. Many solutions don’t support the end-to-end process described here. For classification purposes, if the solution includes a route guide, planning optimization, and electronic tendering/acceptance execution, it is included in this category.
Fleet management is an application for freight moves involving transportation assets owned by the company. The complete process would include routing and optimization, visibility and exception management (including GPS style solutions), transportation asset management, and performance management. Transportation assets include both power units and container cars. Many solutions don’t support the end-to-end process described here. For classification purposes, any solution that includes routing plus any of the other modules listed above will be deemed a fleet management solution.
Based on ARC Advisory Group’s new global market report, the top TMS providers, listed alphabetically, are Blue Yonder, Descartes Systems, Oracle, SAP, and TMW Systems (Trimble Transportation. These providers have consistently been the top providers for nearly a decade. With their dedication to improved performance, technology advancements, and a solid focus on the future of AI, these suppliers have what is takes to remain the top TMS providers.
Blue Yonder
Descartes
Oracle
SAP
TMW (Trimble)
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