6TH ANNUAL GLOBAL TRANSPORTATION MANAGEMENT BENCHMARK SURVEY

Discover the transportation management strategies, tactics and technology that top performers are leveraging to capitalize on market opportunities and

adapt to challenges of a constantly evolving supply chain landscape.

About the Survey

Since 2017, Descartes has conducted an annual benchmark survey of global transportation professionals to identify the strategies, tactics and technology thinking of top-performing organizations.

Survey participants represented a wide range of industry leaders including Descartes customers and followers, trade association members and industry publications readers to provide a balanced view of transportation management. Only the last five years of results are used to keep the study relevant.

Each year our benchmark survey:

• explores how companies view the role of TM
• identifies key industry trends driving the market
• examines how transportation value is measured
• uncovers which capabilities, technologies, and competitive strategies/tactics are making the greatest impact

The 2022 survey: What has changed 2 years into the pandemic?

Strong economies are driving consumer demand for goods, which has put tremendous pressure on transportation organizations to move goods reliably and cost effectively. The combination of capacity constraints and driver shortages in many countries has only added to the challenges transportation organizations face. As it appears, there won’t be a quick resolution to the situation any time soon, supply chains, and in particular transportation, have become a board level discussion.

Who We Surveyed

This year’s 285 survey participants represent the logistics community and shippers from a wide variety of industries. There was a significant emphasis on garnering more respondents beyond North America, which resulted in significantly greater global coverage. Here’s a quick snapshot of their business type and global footprint, plus the transportation modes they use.

Growing participation by logistics community

• PLs 3 are the top business type represented (28%)
• Over half of respondents (52%) work in the logistics community
• Similar to the past three surveys, manufacturers (19%) lead the shipper group

What is your business type?

• 022 2 respondents reported significantly more operations across the globe.
• On a percentage basis, there were less 2022 respondents (12.6%) who spent $100M+ on transportation than in 2020 (25.2%). Some of this can be attributed to broader global coverage.

Truckload continues to dominate

• Respondents using air, rail, parcel and fleet declined 8% – 10%+ in 2022 versus 2021.
• LTL and ocean ranked second and third in both categories, with (67%/22%) and (49%/30%) respectively.
• As expected, truckload leads other modes in percentage of survey respondents (80%), as well as in volume (52%).

Respondent Perspectives

We asked respondents to rate their companies on senior management’s strategic view of transportation and overall financial performance. Based on their ratings, respondents were consolidated into groups for further analysis and to compare results from the five benchmark surveys.

Strategic View of Transportation Management

Breakdown of 2022 respondents

• However, for the last 3 years respondents who believe management views it a basic service have also increased.

Financial Performance

• How well is your company doing financially?

• But Poorer Performers also maintained their 5-year high (37%)

TM Strategy, Financial Performance & Growth: A Strong Correlation

As in previous surveys, the 2022 results once again indicate a correlation between how well a company performs financially and the strategic importance senior management places on transportation management.

Survey findings

• Industry leading financial performance increased significantly in 2022 (37% vs 29% in 2021) for those companies that viewed transportation as a Competitive Weapon.
• 74% of the companies who believed transportation was a competitive weapon had better than average financial performance.
• 40% of companies with poorer financial performance had management that did not believe that transportation management was important.

Company Growth: Looking forward

Expected growth next 2-3 years all respondents

2022 expected annual growth the next 2-3 years by management importance

Key Trends & Practices

We asked respondents several questions related to transportation management regarding the future significance of current market and business drivers, value measurement, where information is used and concerns about competitive strategies.

Industry or Regulatory Changes with the Greatest Market Impact

Top 2 industry or regulatory changes that will have the greatest impact on transportation management over the next 5 years

• Driver shortage (49%) and carrier capacity remain (48%) the overall dominant market drivers.
• Ecommerce was the #3 choice of Top Performers (26%), more than double the percentage of Bottom Performers (12%) rating its future TM impact.
• Fuel costs jumped from #11 in 2021 (5%) to #4 overall in 2022 (25%).
• Carrier charges (31%) -- a new choice -- came in as the third overall most important impact.

What’s Driving TM Expansion?

What business drivers are resulting in your expanded (or initial) use of a transportation management system?

• New answer choices -- better leverage of staff (32%) and capacity shortage (30%) -- take the overall 3rd and 5th places.

Measuring Transportation Management Value

• Overall, contribution to revenue growth (42%) and competitive differentiation (24%) reversed their 4-year growth, declining 10% versus 2022 results.
• Competitive Weapon and Top Performers do a better job measuring transportation value, especially with those measurements of greatest significance to the C-suite.

Sharing Information Beyond Transportation Operations

• Competitive Weapon and Top Performer respondents do a significantly better job sharing information across the organization and external supply chain.
• For the 5th year overall, customer service (55%) was the top sharing response, although it declined 8% from 2021.

What transportation strategies or tactics are the competition using that are the greatest concern to you?

Strategies & Tactics

Survey respondents were asked how they are planning to address the key trends and improve transportation value -- both strategically and tactically. In addition, they ranked the capabilities required to effectively manage transportation, then took a deeper dive into the highest ranked capability.

Preparing for Industry and Regulatory Change

• Overall, O invest in technology was the top response (54%) for the 5th year, but declined 7% versus 2021 (61%).
• Not Important (52%) and Poorer Performer (52%) respondents were considerably more focused on looking for new transportation providers than Competitive Weapon (38%) and Top Performer (30%) respondents.

How are you preparing for the industry and regulatory changes?

• Using the spot market (37%) was the top overall response closely followed by contracting for dedicated capacity (34%).
• Competitive Weapon (42%) and Top Performer (40%) respondents were more focused on using the spot market and Top Performers (44%) were the most focused on contracting for more dedicated fleet.

Organizational Approach to Transportation Strategies

• Overall, O leading edge respondents again were at the top in 2022 (49%) and close to 2020 and 2021 results (51%).
• Competitive Weapon (75%) and Top Performer (77%) were respectively 3X and 2.5X more likely to be a leading strategy adopter than Not Important (25%) and Poorer Performer (34%) respondents.

Key Survey Findings

• There continues to be a direct relationship between management’s perception of the strategic value of transportation management and a company’s performance. Higher strategic value results in better financial performance and growth.
• Driver shortage and carrier capacity, the top overall respondent concerns impacting the industry, have been increasing in significance for the last 3 years.
• Visibility, carrier sourcing and order management are the top capabilities for TMS value and investment over the next 2 years.
• Competitive Weapon and Top Performers do a considerably better job measuring TM value and sharing TM information across the supply chain. As a result, securing additional TM investments is much less challenging for them.