What makes the “SaaS+APP” mode TMS become the standard in the APAC logistics market?

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A latest report, “Transportation Management Systems Market Insights – 2027”, published by Allied Market Research, states that the global transportation management system market was valued at $5,467 million in 2019, and is projected to reach $11,367 million by 2027, registering a CAGR of 9.6% from 2020 to 2027.

As an important part of the transportation supply chain, the transportation management system (TMS) aims to optimize and improve the transportation process and realize the real control of the whole cycle from cargo owners, 3PLs, carriers, drivers to customers.

With increasing complexities of logistics and transportation, the popularity of the TMS platform is continuously growing. According to recent studies, almost 35% of the businesses are now using the platform for managing their transportation network. Technically, TMS enables better transaction and communication to allow users to leverage from vast real-time data, make easier decisions, and plan & strategize for optimal transportation solutions.

The current market volatility has highlighted the significant role of the supply chains in the overall success and valuation of global corporations. Today’s supply chains are incredibly complex, with myriad partners spread across multiple regions as part of an unprecedented, intertwined global trade ecosystem. The COVID-19 pandemic has caused an enormous strain on the global supply chains as they rush to complete and ship orders as quickly as possible which is driving the adoption of transportation management systems among the end users, and accelerating the digital transformation of the transportation industry.

Preferred Mode of Transportation Management System Market

Nowadays, more and more cloud-based transportation management systems are sold as software-as-a-service (SaaS). This means that users subscribe to the technology on a monthly or annual basis instead of purchasing the technology outright. This is more cost-effective and users are always on the most recent version of the software, which provides opportunities for the overall growth of the market as well.

North America dominates the transportation management system market as the TMS industry, providing the largest revenue worldwide due to large number of players and industry columns. As the epidemic enters a normal control phase, the global supply chain is recovering in an orderly manner, international trade is growing, and the share of Asia Pacific will achieve a significant increase. And in recent years, the penetration rate of smart phones has been increasing and e-commerce in Asia Pacific has been developing rapidly. Therefore, TMS’s mobile APP mode will also gradually become the standard for the transportation management market in Asia Pacific.

The leading enterprises in various industries launched digital reform several years ago. As a pioneer of transportation management platform, oTMS has won the favor and recognition of many leading enterprises through the connecting multiple parties on a common workflow transportation management system since its launch in 2013. Using SaaS+mobile APP+API+IOT, oTMS covers road, express and multi-modal shipments within China mainland, incl. real-time visibility, freight cost management, optimization, billing, dock appointment and BI analytics.

As the Asia-Pacific region gradually keeps up with the digitalization process in North America, and the uncertainty in the global supply chain increases, enterprises need to know all the situations of their cargoes when they are transported at home and abroad to improve certainty and their own customer experience. oTMS has now realized the digital upgrade of international sea and air transportation on the product side. Through third-party pre-intergrating with shipping and air cargo companies as well as major ports and customs, it enables import and export logistics tracking and enhances overseas information control. This coverage keeps expanding.

In an complex environment, transportation management system is an important foundation for enterprises to move towards refined and intensive management. Especially for large enterprises with multinational business, increasing the digital transformation of logistics can accumulate more power to improve comprehensive competitiveness. oTMS always insists on pioneering and innovation to help enterprises’ business growth through advanced technology and perfect products.

oTMS LISTED AS A NOTABLE VENDOR IN 2022 GARTNER® ASIA/PACIFIC CONTEXT: MAGIC QUADRANT™ FOR TRANSPORTATION MANAGEMENT SYSTEMS

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SHANGHAI, CHINA– April 1, 2022: oTMS, a leader in cloud transport management platform in China, today announced that it is listed as a Notable Vendor in 2022 Asia/Pacific Context: ‘Magic Quadrant for Transportation Management Systems’* published by Gartner, Inc.

According to this report, “The derived forecast for the TMS software market estimates the global spend to be $2.5 billion through 2025, up from $1.4 billion through 2020. The TMS market growth in Asia/Pacific will continue to increase faster than the growth in other geographic regions over the next five years. The Asia/Pacific market is forecast to grow at a five-year CAGR (2020-2025) of 14.6%, faster than the global CAGR of 13.2%. “

At the meantime, customers’ transportation management needs are also evolving. Gartner mentioned in the report that “Organizations within the Asia/Pacific market have historically looked for transportation management solutions that are execution-focused. Capabilities such as transportation planning and route optimization are not typically prioritized by shippers. Those capabilities are highly desired by 3PL organizations and logistics service providers. With the increasing demand in retail and e-commerce, there is some shifting in this regard.  Companies within those industries are starting to investigate those capabilities to better support customer demands, particularly for last-mile deliveries in urban locations.

There is also increasing interest among companies in the region to have transportation and logistics technologies integrated. In response, vendors in the region often offer a suite of logistics-focused capabilities. This can include TMS, dock scheduling, yard management and warehouse management. Many companies prefer to work with a single technology vendor that offers multiple solutions in an attempt to unify their logistics processes.”

We believe these trends have also been noted by oTMS when serving its clients. Since the launch of oTMS’s transportation management system, it has been recognized by many large and medium-sized shippers because of its pioneering SaaS TMS + APP model and transparent and visible features. It connects manufacturers, carriers, drivers, distributors & retailers on the same platform to manage carriers, shipments, freight billing and performance analysis. Today, oTMS is one of the leading TMS vendors in the Chinese market and has more than 7,500 carriers and 480,000 active drivers on its platform.

With the development of the market, oTMS launched Dock Scheduling System in 2016 to reduce loading and
unloading times to increase the warehouse efficiency. In 2017, oTMS started to provide transport optimization solutions to help companies with scientifically logistics cost saving and service improvement. Adopting self-developed intelligent optimization algorithm, oTMS can optimize freight tariffs, transport modes, carrier allocations, shipping locations, load build and routing. Existing benchmark customers have achieved cost savings of 5%-20%, and the on-time delivery rate has increased by 20%-30%.

Mirek Dabrowski, oTMS, CEO and co-founder, commented: “I am excited oTMS has been mentioned as a Notable Vendor in Gartner, Asia/Pacific Context: ‘Magic Quadrant for Transportation Management Systems for the fifth time in a row. In our opinion, since oTMS first introduced SaaS TMS in China in 2013, transportation management system has now become the infrastructure of supply chain management. We thank investors, customers, and partners for their trust, allowing us to accumulate a large group of customers and launch more services including our dock scheduling system and outsourcing services.”

In the future, oTMS will continue to lead the way, providing customers with outstanding solutions, accelerating the digital transformation of the industry and making transportation smart.

* Asia/Pacific Context: ‘Magic Quadrant for Transportation Management Systems’ by Brock Johns, Bart De Muynck, Oscar Sanchez Duran. March 29, 2022.

 

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Transport Weekly | Do you want to be the last one?

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Innovation is not an easy task in a large enterprise. We often meet passionate customers who love and are willing to embrace innovation. They share good ideas with the company, but due to the complex structure within the company, it takes a long time to have a good idea actually approved and implemented. Often in the process of waiting, fast-moving peers have caught up. Therefore, the ability to respond quickly to change is especially important for business development.

We are very happy to see that more and more large companies are now setting up innovative teams to apply and support innovative projects and startups. For example, oTMS recently completed the Daimler Startup Autobahn which is designed to accelerate the collaboration between Daimler’s corporate partners and startups. It took only 100 days to take an acceleration project from concept to landing. We believe that as more and more companies realize the importance of innovation and rapid action, industry innovations will happen faster.

Don’t want to be the one behind? Then act quickly! Start by bravely adopting new technologies!