Survey shows transportation management seen as key competitive edge

Transportation management is increasingly viewed as a strategic driver of business growth, according to a new survey released by Descartes Systems Group.

The 9th Annual Global Transportation Management Benchmark Survey, which polled more than 600 shippers and logistics service providers (LSPs), found that 81 per cent of respondents now view transportation management as a differentiator or competitive weapon. That figure marks a record high in the study’s nine-year history, while those considering transportation a basic service or not important dropped to 19 per cent, the lowest on record.

Despite its growing importance, the study found significant gaps in automation and digital maturity. Just 17 per cent of respondents said they were fully automated, while more than a third remain heavily reliant on manual processes. The gap was stark between industry leaders and laggards: 51 per cent of companies with strong financial performance reported full automation, compared to just five per cent among those with below-average results.

Generative artificial intelligence is gaining traction across the sector, with 96 per cent of respondents reporting they use it in their operations. The most common applications were data entry (41 per cent), route and load optimization (39 per cent) and freight forecasting and automated load matching (35 per cent). The small share of respondents not using generative AI were more likely to view transportation management as a necessary evil and to forecast limited or no growth over the next two years.

Other findings showed 80 per cent of companies plan to increase spending on transportation management systems (TMS), with priorities including performance management, visibility and fleet routing. Fraud and theft prevention also emerged as a growing focus, with North American respondents ranking carrier monitoring seven per cent higher than their European counterparts. Meanwhile, 72 per cent of respondents expect at least five per cent annual revenue growth over the next two years.

“This year’s survey shows a sector making meaningful progress in elevating transportation from a cost center to a strategic driver of customer value and business growth,” said Mike Hane, director of product marketing, transportation management at Descartes.

The survey, conducted with SAPIO Research, included participants from Canada, the U.S. and Western Europe across a wide range of industries.