The Federal Motor Carrier Safety Administration says that approximately 5.9 commercial motor vehicle drivers operate in the US and nearly 12 million trucks, rail cars, trains and other vessels move goods over the transportation network.
Even with such a large transportation system, the way we move things is constantly evolving and more and more business is being done online. E-commerce in the United States generates more than $400 billion in revenue and is climbing. Whether carrying a truckload, less-than-truckload (LTL) or parcels, they are being forced to adjust to changes in the retail industry.
The trucking industry is just one part of the transportation sector feeling the effects of these changes. While the Bureau of Labor Statistics reports that trucking will transport 18.79 billion tons of cargo by 2040, it appears the length of those hauls is decreasing.
Satish Jindel, president of the SJ Consulting Group, says the length of trucking hauls has declined. Public truckload carries say the average length of haul has decreased four percent between 2011 and 2016.
Even with changes, the importance of the trucking industry in the United States doesn’t appear to be losing its place in commerce anytime soon.
Trucks carry the largest share of freight by value, tons and ton-miles for shipments moving 750 miles or less. Rail is the preferred method for shipments greater than 750 miles. The LTL market is estimated at $35 billion and according to the U.S. Department of Transportation, the value of freight moved is expected to grow from $882 per ton in 2007 to $1,377 per ton in 2040.
With the importance of the trucking industry not diminishing, transportation management software may be a crucial tool in helping the industry and other forms of transportation adjust to the changes in the market. Transportation management software is typically offered in four forms: on-premises licensing, hosted licensing, on-premises hosted licensing and hosted-TMS free of licensing. It also comes in many types including load-broker software and freight management software.
Transportation management software can help with planning and decision making and can assist with transportation execution. TMS software can also help with logistics management and help a company key track of its performance. TMS software can also offer help with transportation costs, batching of orders, optimizing routes and quality control.
As e-commerce gains more and more of a hold on the United States retail market, it will surely be crucial for various transportation industries to adapt with the times. While the importance of the trucking industry and other forms of transportation still play an important role in the United States economy, their role and importance could see some changes in the future. Transportation management software can help transportation industries adapt and better their business practices as e-commerce grows.
Are you in need of transportation management software for your business? Capterra provides a review of several different types of TMS and provides reviews for each of them.