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The market size of the US transportation industry is $1.26 trillion as of December 2022. Every day, the US transportation system moves an average of over 50 million tons of freight valued at more than $50 billion. The North American logistics market size meanwhile reached US$ 1413.4 Billion in 2022. Certain trends and patterns have become a mainstay of this steadily growing industry, especially transportation technology. While transportation management systems (TMS) are now mainstream, there are various new innovations within these systems that help companies fine-tune their supply chains. In this article, we take you through the top 3 transportation management technology trends to be looked at in 2023.
Transportation management systems have managed to help companies significantly over the past decade, with a strong ROI. TMS systems in 2023 are getting more intricate, more advanced, and more intelligent to support other tech innovations. The biggest value TMS systems add to companies is helping them save big bucks on freight.
With custom network design, route optimization, load consolidation, ELD integrations, and more, transportation management systems result in freight savings. Thanks to artificial intelligence and machine learning, TMS systems are getting hyper-aware, allowing stakeholders to analyze and predict various factors, saving time and improving operational efficiency.
In fact, artificial intelligence or AI can be used to appropriately organize shipments. This can be achieved by the system managing to "learn" about limits like capacity, rules, and service hours. AI can help provide a much improved ETA for goods to warehouses, shops, and final consumers. It also helps with other facets of transportation management in addition to ETA improvements. The optimal number of stops before shipments are late can also be revealed to shippers, along with which carriers consistently achieve on-time service standards and which do not. Shippers can increase efficiency without lowering service levels with the help of AI.
An aspect of transportation management that especially aids in real-time supply chain visibility is the use of telematic tools powered by IoT and software. TMS systems increasingly operate on the cloud, allowing real-time data to be gathered. From video via dashcams to real-time location via GPS and RFID tracking, these IoT-powered tools can help shippers, 3PLs, transporters, and carriers to almost gain a digital footprint of their actual operations.
Tools that provide real-time visibility are typically most useful for over-the-road shipments. They are equally crucial for other modalities, though. Visibility for OTR shipments is based on integration with truck carrier systems. In turn, carriers, transporters, or 3PLs can monitor ELD devices on their vehicles or through a driver-downloaded app on their smartphone. ShipmentX provides a mobile app by which carriers can track and manage vehicles in transit in real time.
Essentially, real-time visibility is enabled by technological upgrades and innovations to existing transportation management systems, improving efficiency and operations and ensuring profits for all the stakeholders involved.
Collaborative transportation involves sharing data and information between supply chain partners to make informed decisions about transportation planning and execution. In 2023, most systems are interconnected, allowing shippers, carriers, 3PL, transporters, and their clients to access relevant data in real-time. With custom ERP (enterprise management) integrations, ShipmentX allows 3PLs and transporters to track shipments and stay connected with consumers through an intuitive dashboard.
Collaborative transportation typically involves a similar shared platform or system that allows participants to access real-time data and coordinate transportation activities. Some key elements of collaborative transportation in practice include:
Overall, collaborative transportation can lead to a more efficient and effective supply chain by reducing costs, improving delivery times, and increasing visibility and control over transportation activities.
Technological innovation in transportation management systems (TMS) can help shippers, 3PLs, carriers, transporters, and other players measure and track various sustainability metrics related to their transportation activities, such as:
By using technology to maintain, measure, and innovate, transportation management systems allow shippers, carriers, 3PLs, and other players to better understand their environmental impact and identify improvement opportunities, helping them meet sustainability goals and reduce their carbon footprint.
Real-time tracking and other tech innovations can help shippers can gain greater visibility and control over transportation operations, reducing the risk of disruptions, improving delivery times, and increasing the efficiency of the supply chain. Clearly, in 2023, real-time visibility TMS systems, collaborative, cloud-based tech, and eco-friendly measures are major trends that will shape the industry. If you are looking for a transportation management system that also helps you gain insight into your operations, contact ShipmentX today!