Transportation Management Practices Changing Dramatically, Study Finds
CARY, NC (October 19, 2006) - A recent study of 173 manufacturing, distribution and retail organizations finds that 91% of those surveyed are concerned that their current transportation management technology will not meet future needs and nearly two-thirds of those surveyed are recommending improving their transportation management technology, reported MercuryGate International Inc., an underwriter of the study and provider of the MercuryGate transportation management solution (TMS).
The study, "Transportation Benchmark Report," was conducted in August 2006 by Aberdeen Group, a Boston research group.
Monica Wooden, CEO of MercuryGate, said, "The findings from this report were not surprising to us as we hear this constantly from companies requesting information about the MercuryGate TMS. Our client base has doubled over the past two years as more companies realize the necessity of a web-based solution that meets intermodal and international freight needs."
New MercuryGate's clients in past few weeks include: Translogistics, U.S. Xpress and Alliance Logistics.
"Transportation management is assuming a strategic role in driving supply chain excellence," writes Beth Enslow, Aberdeen's senior vice president of enterprise research and report author. "In recognition of this, most companies are actively re-evaluating their transportation management processes, organizational structure, and technology."
Aberdeen's study finds that "best in class" companies have been able to reduce their freight budgets while the average respondent saw costs rise by 10%. The "best in class" performers also have better on-time delivery performance.
Other study findings:
- Best in Class take different actions. Best in Class companies are more than twice as likely to do daily score carding and share tactical capacity forecasts with carriers; they also control a greater percentage of inbound freight and use more commercial TMS technology.
- Online information is essential. 54% of respondents now provide other departments with online transportation cost and status information, up from 31% in Aberdeen's 2004 transportation benchmark.
- Legacy technology won't cut it. Nine out of 10 companies are concerned that their current transportation technology will not meet their future needs. Four times more firms plan to adopt commercial transportation management applications vs. build systems in-house.
- International transportation gains new attention. 39% of participants say they are going to seek to adopt a commercial international transportation management system vs. just 12% in Aberdeen's 2004 benchmark.
To access the full report please visit www.MercuryGate.com.
About MercuryGate International Inc.
MercuryGate delivers solutions that allow shippers, carriers, freight forwarders and third party logistics providers to plan their transportation, execute their freight movements, and analyze the performance of all involved. Customers optimize loads, rate and route loads, spot quote through both private and public bid boards, tender freight, track movements, audit carrier freight invoices, and send customer invoices. Through a customizable workflow engine, MercuryGate customers are able to move the straightforward parcel, LTL (less than truckload), and truckload shipments as well as the more demanding multi-leg ocean, air, and rail movements. Customers may then analyze the information gathered as they move freight to provide key performance indicators on their internal business as well as on carriers, suppliers, and all parties in the supply chain. For more information, visit www.mercruygate.com.
About Aberdeen Group, Inc.
Aberdeen provides fact-based research and insights focused on the global, technology-driven value chain. Aberdeen's benchmarking, market and solution assessments, sales acceleration programs, and conferences support Global 5000 value chain and technology executives--and the solution providers who serve them. For more information, visit www.aberdeen.com or call 617-723-7890.