Strategic freight and transportation management trends for 2020 envelope technology, process improvements, application of data, connected systems, and a robust set of dynamic rule sets that will ultimately define future supply chain successes.
2020 Freight and Transportation Management Trends
The transport management trends for 2020 reflect an increasing consensus which new technologies and visibility will specify the successes of the upcoming supply chain.
Adoption rates for new services and cloud-based technology are climbing, as well as the worldwide transport management system (TMS) is enlarging.
In fact, according to FreightWaves, the global TMS market will achieve a compound annual growth rate of 19.13% through 2024.
Also, as further demonstrated by Gartner research;
“Companies will spend $1.94 billion on TMS applications by 2022, with Software-as-a-Service products accounting for 65% of that. Clearly, companies expect to leverage TMS even more than they do today. From reduced transportation spend to better management of routing and the automation of freight auditing and payment processes, the modern TMS must do more than record time and place of shipments.”
Spot Rates Will Decline Throughout 2020
The Freight spot speed marketplace can be changing in the aftermath of tendencies within the business. The place market reacts to the accessible supply and need.
As demand modifications to reflect limited transport capacities on account of this coronavirus and it is a possible association with the unknown mode of transmission, place rates will alter.
Considering all the discussion about transmission and modes, it may be confusing to maintain medical language and logistics language separate.
What You Need to Know
Researchers do not yet know exactly how the coronovirus spreads, and until they have an endpoint of transmission, there will remain uncertainty as to whether products that originate from China or the Asia-Pacific region Trade routes will be subject to new rules or standards.
In other words, the spot rate market is on the verge of being down due to huge uncertainty about coronoviruses and the election cycle only adds insult to injury.
Shippers Will Start to Recover From the U.S.-China Trade War
The huge anxieties and issues deriving from the U.S.-China trade war are finally beginning to ease. A new trade agreement was achieved, and hope is on the horizon. But to ensure shippers don’t fall prey to yet another issue leading to politics, more firms will turn into TMS applications to make tough decisions based on truth, not ideology doubt and promises.
Transportation Management Trends for 2020 Include Increased Adoption of Cloud-Based Systems
The largest transportation management tendencies for 2020 will revolve around using cloud-based systems. Cloud-based platforms leverage a software-as-a-service (SaaS) model to efficiently give businesses infinite scalability and a hassle-free approach to utilize advanced IT resources. The outcomes are apparent, and businesses that have deployed cloud-based platforms recognize higher earnings and returns that far surpass conventional, on-premise TMS capacities.
Also read: Pros and Cons for Data Analytics in Supply Chain Management
Load Tendering Automation Will Improve Efficiency and Enable Balance
Automation will form the next important trend for 2020. Automation is anyplace and in most supply chain procedures. It enables for driverless forklifts and trucks. It handles exception management. It opens the doors to faster processing of information to track shipments more efficiently and recognizes when place prices are somewhat more cost-effective than contracted cargo prices. Load tendering automation will stand apart from 2020 and help shippers maintain balance.
AB5 Will Have a Minimal Influence
Considering that many carriers have been constituted of fleets with five or five truckers, the current passing and enforcement of California’s Assembly Bill 5 (AB5) might appear to introduce new risks into the trucking business for California truckers. The legislation reclassifies most impartial drivers as workers, including still another collection of regulations that truckers have to follow.
But, a few in the sector are optimistic that the effects of AB5 is minimum now since the law has been contested. However, if AB5 were declared it would increase operating costs for carriers, but not to this stage it will radically impact shippers.
What Shippers Need to Do Now
Outsource: Outsourcing logistics is currently the go-to best clinic for supply chain leaders needing additional help in handling all facets of a company, especially packing design, warehousing, and transport, in addition to a run of value-added, 4PL solutions, such as bookkeeping and auditing procedures. Outsourcing will be one of the greatest, if not the largest itself, transport management tendencies for 2020.
Also read: Combination of Technology and Humanity in Successful Supply Chains
The Top Transportation Management Trends Will Continue to Change
Leading transport management tendencies are easy. They include more tech in cargo management by means of a change toward outsourcing-preferred management methods.
Since the cargo marketplace continues to change during the upcoming year, shippers will need to execute the technology and procedures which promote productivity, efficiency, and economies.
Luckily, 3PLs, such as Cerasis, have spent decades creating new capacities inside SaaS platforms to offer you a larger, better, and more efficient method to approach logistics direction. Paradoxically, that reality alone is a part of the reason outsourcing is currently the go-to best clinic for cargo management.