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Gartner Supply Chain
Technology Team
TMS Overview
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Introduction
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Prioritizing Supply Chain Technologies
“I want the best supply
chain functionality and
capability”
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Enterprise Application Software Market
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What You Need to Know — Market Insights
The key drivers in this technology market are:
• Digitalization
• Advent of multienterprise business process enablement
• Commoditization of public cloud computing
• Development of single data model offerings
• New vendors in the market
• In-memory computing becoming a foundational standard
• Supply chain convergence
• Automation and enhanced decision making (adding “embedded intelligence” such as AA, AI/ML)
• Digital supply chain twin
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Functionality Is Important to Our Clients …
When selecting new supply chain applications what are the top four criteria that determine which SCM application you choose?
n = 107
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Gartner Branded Documents: Magic QuadrantA report offering visual snapshots, in-depth analyses and actionable advice, which provide insight into a market’s direction, maturity and participants
Planning SOR
Planning SOD
Strategic Sourcing
Procurement
Manufacturing Transportation
Warehousing
Logistics Providers
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Gartner Branded Documents: Hype CycleOverview of the relative maturity of technologies and innovations in a specific area, offering a simple way to understand and communicate the complex issues related to maturing technologies and their related benefits
Planning Source & ProcureManufacturing Industry Execution SC Strategy
Manufacturing Operation
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Gartner Branded Documents: The Other ViewGartner recognizes current market developments and extends key signature research to address those. Now not only having domain-specific MQs, HCs, MCs, CVs … but also cross-functional, end-to-end
Business Network
Magic Quadrant
Multienterprise
Hype Cycle
Ecosystem
Hype Cycle
Recognizing new terminology & capabilities
➢ Multienterprise
➢ Business network
➢ Ecosystem
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TMS
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Logistics & Transportation Landscape
Analytics/
Visibility
Warehouse
Management
Yard
Management
Mobility
Interfaces
Applications
Transactions
Data
Fleet
Management
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Logistics & Transportation Decision Flow
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TMS Means Different Things to Different Roles/Companies
MQ
Non-vessel operating common carrier (NVOCC)
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Gartner Model for Holistic Multimodal Transportation Suites
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TMS Components
Analytics/
Visibility
Execution
Settlement
Mobility
Interfaces
Applications
Transactions
Data
Planning
Procurement
Logistics Networks
Suppliers Customers
CarriersOther
Shippers
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TMS Stratification ModelN
etw
ork
/Pro
cess
Co
mp
lexit
y
Process Sophistication
Fragmented
CentralizedPlanning/Local
Execution
Multidirectional
Global Shared Service
MultienterpriseCollaboration
LOCAL REGIONAL GLOBAL
2
1
3
4
5
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Level 1 Transportation Complexity
Level 1 Transportation operations are typically rudimentary environments where transportation is
managed locally and in its own functional silo. The process are manual and there is very limited
visibility to the transportation execution.
Level 1 TMS solutions offer limited transportation capabilities, normally as minimal additions to the
order management and fulfillment capabilities of ERP applications. Level 1 TMS applications are
rudimentary, mostly manual TMS capabilities, such as simple mode and carrier selection at order entry
time. Many ERP solutions provide a place to select a carrier for a specific order from a fixed routing
guide, a list or as specified by the customer. Some also offer minimal mode selection based on high-
level rules, such as delivery promise date, which helps determine if an order goes parcel/next day or
less than truckload. Normally, these solutions support a fraction of an enterprise's transportation
activities; the remainder are typically supported manually. At this level no extended capability is
needed and the solution is very regionally focused and typically only needs to provide a solution for the
over-the-road shipments, FTL and LTL.
Level 1 Complexity
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Level 2 Transportation Complexity
Level 2 Transportation operations are typically fairly straight forward with mainly still manual processes
and some capability in the ERP to provide some insight into transportation spend.
Level 2 Transportation operations use more of the core TMS capabilities but do not get into extended
TMS capabilities. This level introduces more transportation-specific functionality, focusing primarily on
the execution aspects of over-the-road transportation — tendering shipments to carriers — and, in
some cases, providing limited and rudimentary planning capabilities. Level 2 TMS provides more
dynamic selection of modes and carriers while focusing on improving the shipment-tendering process.
However, Level 2 TMS typically supports a minimal number of modes (for example, truckload and less
than truckload), and most are regionally specific (for example, the U.S.). The basic systems provide
some electronic data interchange (EDI) tendering. More robust solutions add carrier portals, whereby
email messages or web forms are used to electronically tender to non-EDI-capable carriers.
Level 2 Complexity
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Level 3 Transportation Complexity
Level 3 TMS solutions expand the functionality by adding better operational planning, visibility (track
and trace), some freight rating and carrier contract management, audit and pay, and some freight
analytics. These solutions are closer to providing a closed-loop TMS (plan-execute-monitor-settle),
with somewhat more sophisticated planning engines, and more options for consolidating shipments
and selecting the best carrier. At this level, we see improved operational planning for a single direction
(for example, outbound or inbound), more modes (for example, parcel, less than truckload, truckload,
air, intermodal, rail and ocean), minimal support to identify backhauls and round trips, more robust
load consolidation, and better carrier selection.
Level 3 Complexity
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Level 4 Transportation Complexity
At Level 4, emphasis shifts from core TMS where manual work processes are automated to focusing
on improving or enhancing processes by adding value-added decision support capabilities such as
freight procurement, transportation modeling and 3D Load Building.
This level introduces increasingly sophisticated transportation planning features focused on improving
mode selection, load consolidation, routing and carrier selection, allowing for the simultaneous
consideration of inbound, intra-enterprise and outbound shipments in a single planning and execution
environment. Level 4 TMS has more robust options and greater levels of inherent model sophistication
and flexibility. These systems are aimed at constructing transportation plans that exploit more
opportunities to combine loads, build round trips, build continuous moves or exploit advanced
concepts (such as pool and floating pool-point distribution) to further reduce costs while meeting
service objectives. These systems are often used to centralize transportation planning with the most
advanced shippers, creating a shared-service organization spanning functional areas, business units
and geographies. These types of Level 4 solutions also expand the footprint by adding capabilities
such as freight procurement, bid optimization, forecasting, tactical freight capacity planning and more
robust performance management.
Level 4 Complexity
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Level 5 Transportation Complexity
The previous levels focus on domestic/regional transportation, whereas the emphasis at this level
shifts to global transportation/logistics operations. Level 5 operations are usually the most complex
and sophisticated. This is because these organizations need to support multileg shipments that
typically span multiple countries, multiple modes of transportation, multiple parties involved in a
shipment and shipments with long cycle times.
Level 5 TMSs are designed to handle the complexities and special needs of a global transportation
operation. At a minimum, these systems must be globalized to support multiple languages, currencies,
geographies (road networks) and other international features, such as date formats and postal codes.
More important is the need to support global transportation requirements, such as multileg shipments,
international documentation and additional modes, such as ocean and international air shipments.
Level 5 Complexity
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TMS Vendors
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TMS Vendor TypeVendor Type Description CompaniesApplication
megasuite vendors
These vendors offer broad portfolios of applications across most
application categories (for example, back-office financials, supply chain
management [SCM], logistics, CRM and product life cycle management
[PLM]).
Oracle, SAP
SCM suite vendors These vendors offer a portfolio of applications focused primarily on
SCM, including aspects of logistics, but not other functional areas such
as financials or human capital management. While these vendors might
offer a variety of SCM solutions, they do not necessarily offer an
integrated platform (although some do).
JDA Software, Manhattan
Associates, BluJay Solutions
Specialist TMS
vendors
These vendors are independent software vendors (ISVs) that focus
primarily or exclusively on holistic TMS, although they might offer some
additional capabilities.
3T Logistics, inet, Kuebix,
MercuryGate International,
3GTMS, CloudLogistics,
Logility
TMS services
vendors
These vendors offer not only the TMS technology but also provide the
services to run the day-to-day transportation management while the
shipper maintains and controls key relationships with their carriers and
customers. Some specialist vendors also offer this service but are still
primarily Technology vendors.
C.H. Robinson (TMC),
Transplace
SMB Vendors These vendors are specialist TMS vendors that focus on specific
regions or are generally much smaller players in terms of company size
and number of customers and industries served
Generix, DDS Logistics,
OTMS, PrimeLog, Unifaun
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Track Record
Optimization
Go-to-Market
Breadth/Depth
Innovation
2019 Magic Quadrant
From "Magic Quadrant for Transportation Management Systems," 9 March 2018 (G00304405)
24 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.
Notable Mentions
▪ Generix Group
▪ InMotion Global
▪ ProcessWeaver
▪ TRANSPOREON
▪ TMSFirst
▪ Transwide (Alpega)
▪ Unifaun
▪ vTradEx
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Four Vendors Dominatethe TMS market
TMS Has a Diversified Vendor Landscape (US)
Next category is a small group of TMS vendors that has revenues of $20M or
more and growth of 15% or more
We have dozens of smaller TMS players that have a limited amount of enterprise
customers, but many more (in some cases 1000s) of SMB customers
26 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Gartner Also Follows TMS Vendors in the SMB MarketVendor Headquarters Region
3GTMS Shelton, CT US
3T Logistics Leicester, U.K. Europe
Acuitive Solutions Charlotte, NC US
AdvantageTMS Pleasanton, CA US
AEB Gesell Stuttgart, Germany Europe
Agistix San Mateo, CA US
BestTransport Worthington, OH US
BluJay Solutions Manchester, U.K. US
Broussard Logistics Houston, Texas US
Cirrus TMS Palm Harbor, FL US
CloudLogistics Fort Lauderdale, FL US
CTSi Global Memphis, TN US
DDS Logistics Boulogne-Billancourt, France Europe
Deltion (CarrierNet) Staines, U.K. Europe
Descartes Waterloo, Canada Canada
Dovetail Epsom Downs, South Africa South Africa
Enroute (Pitney Bowes) Stamford, CT US
Evos SmartTools Bend, Oregon US
FlexTMS (Echo Global Logistics) Chicago, IL US
FirstTMS Houston, TX US
FreightGate Fountain Valley, CA US
FreightPop Lake Forest, CA US
Freightview (TMC) Overland Park, KS US
Generix Group Lesquin, France Europe
HighJump Eden Prairie, MN US
Inconso Bad Nauheim, Germany Europe
Infor New York, NY US
InMotion Global (AscendTMS) Brandon, FL US
InterLog Group Chanteau, France Europe
JDA Scottsdale, Arizona US
Kuebix Maynard, MA US
Log-Net Tinton Falls, NJ US
Logicor Mesa, AZ US
Logility Atlanta, Georgia US
Made4Net Hackensack, NJ US
Vendor Headquarters Region
Mercurygate Cary, NC US
Microsoft Dynamics Redmond, WA US
NCR Retalix Duluth, GA US
Next Generation Logistics Inverness, IL US
NuLogX Mississauga ON, Canada Canada
nVision Global McDonough, GA US
Odyssey Logistics Danbury, CT US
OneNetwork Dallas, TX US
Oracle Shanghai, China US
oTMS Shanghai, China APAC
Precision Software Lisle, IL US
PrimeLog (Pagero) Gothenburg, Sweden Europe (Scandinavia)
Princeton TMX Fort Wayne, IN US
RAMCO Systems Chennai, India APAC
Ratelinx Madison, Wisconsin US
Redwood SCS Chicago, IL US
Revenova Chicago, IL US
Saas Transportation Destin, FL US
ShipHawk Santa Barbara, CA US
ShippersEdge Burnsville, MN US
Siemens Postal, Parcel and Airport Dallas, TX US
Slick Software Solutions Antwerp, Belgium Europe
Softeon Reston, VA US
Tecsys New York, NY US
TMSFirst Houston, TX US
Transporeon Ulm and Kempten, Germany Europe
Transportation Warehouse Opt. Franklin, TN US
Transwide (Alpega) Zaventem, Belgium Europe
Transworks Fort Wayne, IN US
UltrashipTMS Fairlawn, NJ US
Unifaun Gothenburg, Sweden Europe (Scandinavia)
URoute Warren, MI US
vTradEx Shanghai, China APAC
WiseTech Global Alexandria, Australia APAC
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TMS Selection Criteria
© 2018 Gartner, Inc.
• Best of Breed vs Industry Focus
• Breadth and Depth of TMS support
• Geographical expertise
• Similar Company Profile
• Maturity
• Experience (nr of implementations)
Functionality
Agility
Cost
Area of Expertise Culture
Vendor Vision
Customer References
Usability
• In-memory
• Cloud
• Collaboration Support
• Customer centric
• Customer councils
• Standard Software Features
• Planning Capabilities
• Advanced Capabilities, Network
• Innovation
• Product Roadmap
• Partnerships
• Value-Based Justification
• Pre-templated solutions
• Level of cost and effort
• Easy interface
• Data exploration
• Data visualization
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ROI
29 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
▪ Average TMS Productivity: 5%-15%
▪ Areas of productivity of a TMS
▪ Route and mode optimization
▪ Rate Negotiations and compliance
▪ Carrier assignment optimization
▪ Electronic communications/Visibility
▪ Continuous moves and dedicated fleets
▪ More efficient/automated operations
TMS ROI
30 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Expected Savings
Avg. Savings between 5-15% of Freight Spend
Largest group of TMS customers see a 5-10% savings
31 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Savings Buckets (high to low)
Optimization 5%-25%
➢ Lower Cost Mode selections
➢ Better rate selection
➢ Better load optimization
➢ Continuous moves and dedicated fleets
Procurement Savings 3%-10%
Increased usage of preferred carriers 4%-8%
More efficient, automated operations 1%-5%
Freight Audit Savings 1%-5%
Better Analytics 1%-5%
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Other Benefits
Customer Satisfaction
Warehouse efficiencies
Yard efficiencies
New Delivery capabilities
Inventory Reductions
Cash flow improvements
Access to a greater number of carriers
Better transportation compliance
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Cost
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TMS Costs
35 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Cost of a TMS
License cost is typically between 1%-1.5% of Freight Under Management (FUM)
Cloud solutions include licenses, maintenance, support and infrastructure
For On Premise solution you need to add another 20%-25% per year for maintenance costs plus the cost of the infrastructure (servers, software licenses)
The implementation cost is heavily dependent of the complexity of the solution and the vendor and can go from 1/3 of the license cost to 3X the license cost.
36 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Recent Factors Impacting ROI
Globalization of transportation
Omni-Channel
Cloud Platforms
Lower Barriers to Entry
❑ Subscription based pricing
❑ Free or Low cost solutions
❑ Savings sharing options
❑ Faster and less costly implementations
❑ Realization of productivity occurs sooner
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Visibility
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Visibility — Context
Lack of real-time end-to-end supply chain visibility
Inability to understand and leverage signals from the digital ecosystem
Lack of exception management and an intelligent response framework
Inability to continuously learn, sense and respond
Visibility is about building the foundation, providing E2E data driven insights as basis for E2E smart decision making at various levels of granularity and time horizons combined with intelligence & automation
39 CONFIDENTIAL AND PROPRIETARY I © 2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Operational Visibility Vendor GuideFocus on operational visibility covering supply chain operations with the primary focus to fulfill orders, manage inventories (outside the enterprise) and move or deliver products
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Research
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Recommended Gartner Research▪ Magic Quadrant for Transportation Management Systems
▪ By Bart De Muynck, Brock Johns, Oscar Sanchez Duran (ID G00355727)
▪ Critical Capabilities for Transportation Management Systems
▪ By Bart De Muynck, Brock Johns, Oscar Sanchez Duran (ID G00373495)
▪ Gartner’s Model for Holistic Multimodal Transportation Management Systems: Core Capabilities
▪ By Oscar Sanchez Duran, Brock Johns, Bart De Muynck (ID G00353665)
▪ Gartner’s Model for Holistic Multimodal Transportation Management Systems: Extended Capabilities
▪ By Oscar Sanchez Duran, Brock Johns, Bart De Muynck (ID G00386368)
▪ Key Considerations for Supply Chain Leaders Evaluating Transportation Management Systems
▪ By Bart De Muynck, Brock Johns, Oscar Sanchez Duran (ID G00373527)
▪ How to Select the TMS, Provider and Solution Best Suited for Your Strategic Capabilities
▪ By Bart De Muynck, Brock Johns, Oscar Sanchez Duran (ID G00373527)
▪ How to Calculate the ROI for a Transportation Management System Project
▪ By Brock Johns, Bart De Muynck, Oscar Sanchez Duran (ID G00390024)
▪ Maximize Business Success in the Deployment Phase of a Transportation Management System Implementation
▪ By Oscar Sanchez Duran (ID G00377339)
▪ Toolkit: RACI Matrix for TMS Implementation
▪ By Oscar Sanchez Duran, Brock Johns, Bart De Muynck (ID G00383283)
For more information, stop by Gartner Research Zone.
© 2018 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This presentation, including all supporting materials,
is proprietary to Gartner, Inc. and/or its affiliates and is for the sole internal use of the intended recipients. Because this presentation may contain information that is confidential,
proprietary or otherwise legally protected, it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
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