Freight management is the process of effectively and strategically moving cargo over the network from its point of origin to its required destination utilizing different modes of transportation, intermediaries, and technologies. The process utilizes logistics and supply chain equipments, physical assets such as trucks, distribution centers & warehouses, and technology to transfer freight efficiently. The ability to deliver cargo on time and to the right destination and accurate quantity, damage-free, and at the least possible expense has always been extremely important to businesses.

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In the competitive environment, this system is more important due to factors such as leaner shipper supplies, just-in-time production processes, increasing warehousing and labor costs, and consumer satisfaction driven by e-commerce companies. Commodities and components moving through various transportation modes such as trucks, ships, trains can be tracked using internet of things-based sensing systems. These systems provide businesses with real-time location data and status updates such as the temperature of products and commodities.

The growth of the free trade policy between countries, increasing business imports and exports around the world, and adoption of technologies that help track, secure, and control in-transit freight are the factors driving the growth of the freight management system market. In addition, growth of communication technologies coupled with increasing adoption of internet of things propels the market growth. However, crowded trade routes and cross-border trade risks and environment concerns related to transportation and logistics are the factors hampering the market growth. Furthermore, increasing e-commerce industries is expected to provide lucrative growth opportunities to the freight management system market during the forecast period.  

Order management system is a way that manages the lifecycle of an order. It monitors all the information & processes, inventory management, and after-sales service. To simplify all the procedures in a proper way in organizations and the need to build a flexible system to improve the customer experience, businesses are implementing order management systems in freight management systems. Order management integrates all enterprise resource planning system and product information systems. The advantages of the system increase the demand in organizations.

Third party logistics segment is expected to make use of freight management system and the market is expected to grow at a high rate during the forecast period. The higher growth rate is attributed to the implementation of free trade policy by several countries around the world. Further, rapid rise in demand for on-time shipment of products & raw materials and growing demand for warehouse efficiencies also drive the growth of freight management systems in the third-party logistics market.  

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