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Network Solutions For Improving Transportation Management Systems

Transportation logistics can be handled by networking systems that may increase management efficiency and accuracy. The ARC Advisory Group divides transportation management systems (TMS) into three categories, planning and execution, fleet management and point solutions.

Planning and execution systems are generally employed by shippers that use carriers to transport freight. Fleet management is an effective system for shippers and carriers that need to manage their own transportation assets. Point solution systems generally only target a portion of a TMS.

"Multitenant solutions that leverage the network remain a key growth driver for this market," Steve Banker, the service director for supply chain management at the ARC Advisory Group, stated.

A TMS often involves multiple partners due to the nature of transportation, so, implementing a networking system such as a SaaS and clouds, can be advantageous. These systems allow companies to share data electronically.

Gartner, an analyst firm, predicts that SaaS sales will reach $10.7 billion in 2011, which would be a 16.2 percent increase from the $9 billion reached in 2010. Sharon Mertz, Gartner's research director, claims that organizations are less hesitant to consider SaaS and cloud systems as the technology advances and grows more common among businesses.

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