AI & automation reshape transport management for growth
New research from Descartes Systems Group reveals transportation management is now seen as increasingly important for business competitiveness and growth, with artificial intelligence adoption on the rise despite persistent gaps in automation.
The company's 9th Annual Global Transportation Management Benchmark Survey, which gathered responses from over 600 shippers and logistics services providers, found that 81% now regard transportation management as a differentiator or competitive weapon within their organisations. This represents the highest level recorded since the survey began, suggesting a shift in perspective among businesses across multiple sectors. Those viewing transportation as a basic service or not important declined to 19%, the lowest figure to date.
The study highlights that while transportation management systems (TMS) are gaining traction as a crucial element in the technology landscape, a significant automation gap persists. Just 17% of respondents reported being fully automated in their transportation operations. More than a third of companies said they remain heavily or mostly reliant on manual processes.
The digital gap in automation is especially pronounced when comparing companies by financial performance. Industry leaders are far ahead, with 51% reporting fully automated processes. In contrast, only 5% of companies with below average financial performance have reached full automation. These organisations also trail in artificial intelligence adoption and growth expectations.
Generative AI uptake
Adoption of generative AI in transportation management is accelerating, according to the survey. Overall, 96% of respondents stated they are currently using generative AI in their operations. The top three use cases were data entry (41%), route and load optimisation (39%), and both AI-driven freight forecasting and automated load matching or capacity sourcing (35%).
Among the small proportion not using generative AI (4%), there was a higher likelihood of viewing transportation management as a necessary evil and expecting limited or no growth over the next two years.
Investment drivers
Investment in transportation management systems looks set to increase. The survey found that 80% of respondents plan to boost their TMS IT spending, concentrating on areas such as performance management, visibility, and fleet routing. This commitment to investment aligns with priorities around automation and digital transformation.
Fraud and theft prevention are also gaining attention, with carrier monitoring - covering insurance, safety, and fraud - emerging as one of the top three desired TMS capabilities. Respondents based in North America cited these concerns at a rate 7% higher than their European counterparts.
A further key finding is the positive growth outlook for the sector. The study reports that 72% of respondents expect at least 5% annual revenue growth within the next two years, indicating continued optimism despite ongoing operational challenges.
Industry perspectives
"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, Product Marketing, Transportation Management at Descartes. "This transition is backed by greater investment in TMS technology, according to study findings, as companies seek to more fully embed automation and AI in transportation management operations to enhance performance and generate value."
The survey, conducted by Descartes and SAPIO Research, included 616 participants split evenly between logistics services providers - such as brokers, forwarders and third-party logistics providers - and shippers, including manufacturers, distributors, and retailers. Respondents represented a wide range of industries and were primarily based in the United States, Canada, and Western Europe.
The research aimed to understand current attitudes towards transportation management, to identify which capabilities and technologies are having the greatest impact on operations, and to provide an outlook on future IT investment strategies in transportation.
The results indicate that companies with higher digital maturity and automation in transportation management are better placed for growth and improved competitiveness. Nevertheless, a substantial proportion of businesses still face challenges in moving away from manual processes, impacting their ability to respond to changing market dynamics.
The survey provides insight into the future direction of transportation management, with artificial intelligence and increased automation at the forefront of industry strategies.
