Research Note: A Roadmap for SAP TM's Development and Growth
Executive Summary
SAP Transportation Management (SAP TM) has established itself as a leading solution in the market, enabling companies to optimize their logistics operations, reduce costs, and improve customer service. As we look towards the future, SAP is well-positioned to maintain its leadership position by leveraging advanced technologies, expanding its ecosystem, and delivering innovative solutions that address the evolving needs of the logistics industry. This report outlines the strategic planning assumptions that will guide SAP TM's development and growth over the next decade.
Artificial Intelligence and Machine Learning
SAP TM will continue to incorporate artificial intelligence (AI) and machine learning (ML) capabilities to drive optimization and automation across transportation processes:
By 2030, SAP TM is expected to be the leading choice for 45% of global enterprises with complex, multi-modal transportation needs, driven by its comprehensive functionality, seamless integration with SAP's intelligent enterprise solutions, and advanced AI capabilities.
The adoption of SAP's AI-powered logistics solutions is projected to increase by 70% among its customer base by 2028, resulting in an average transportation cost reduction of 30% and an improvement in on-time delivery performance by 35%.
Cloud Adoption and Ecosystem Expansion
The shift towards cloud-based solutions will accelerate, with 80% of new SAP TM implementations expected to be cloud-based by 2032. SAP will expand its market share in the SME segment by 35% by 2027, offering pre-configured, industry-specific SAP TM solutions that enable rapid implementation and time-to-value.
To strengthen its offerings and capabilities, SAP will acquire at least three emerging technology companies in the logistics space by 2029, focusing on real-time visibility, predictive analytics, and autonomous decision-making. Additionally, SAP will expand its partner ecosystem by 50% by 2026, collaborating with third-party logistics providers, carriers, and technology companies to deliver end-to-end, integrated logistics solutions.
Blockchain, IoT, and Advanced Analytics
SAP TM will harness the power of blockchain and Internet of Things (IoT) technologies to enhance supply chain transparency, automate contract compliance, and enable real-time tracking and dynamic routing of transportation assets. The integration of SAP TM with SAP Blockchain will enable 60% of SAP TM customers to achieve end-to-end supply chain transparency and automate contract compliance by 2031.
By 2028, 40% of SAP TM customers will leverage SAP's IoT capabilities, resulting in a 20% improvement in asset utilization and a 15% reduction in maintenance costs. Additionally, 50% of SAP TM customers will use SAP's advanced analytics and machine learning capabilities to optimize their freight spend by 2032, leading to a 10% reduction in overall transportation costs.
Sustainability and Innovation
Sustainability will be a key focus area for SAP TM, with 75% of customers expected to utilize SAP's Sustainability Footprint Management solutions to track, measure, and reduce their carbon footprint across transportation operations by 2030.
SAP will invest €1.5 billion in research and development for its transportation management solutions by 2035, focusing on autonomous logistics, advanced analytics, and AI. The company will also establish a global network of logistics innovation centers by 2030, collaborating with academia, startups, and industry partners to develop and test new technologies and business models for the future of transportation management.
E-commerce, Last-Mile Delivery, and Predictive Analytics
To address the growing needs of the e-commerce sector, SAP will launch a dedicated transportation management solution for e-commerce and last-mile delivery by 2025, which is expected to be adopted by 30% of its retail and consumer goods customers within the first three years of release. SAP TM will also leverage predictive analytics capabilities to help customers anticipate and proactively mitigate supply chain disruptions, with 45% of customers expected to achieve a 30% reduction in the impact of disruptions on their logistics operations by 2029.
Collaborative Logistics and AI-powered Freight Matching
SAP will launch a blockchain-based platform for collaborative logistics by 2028, enabling 40% of its TM customers to securely share data and automate transactions with their trading partners, resulting in a 25% reduction in administrative costs. By 2031, 55% of SAP TM customers will use SAP's AI-powered freight matching capabilities to optimize carrier selection and capacity utilization, leading to a 20% reduction in empty miles and a 15% improvement in carrier performance.
Sustainable Logistics Partnerships and Virtual Assistants
SAP will establish a global alliance of sustainable logistics partners by 2033, enabling 50% of its TM customers to access a network of pre-qualified carriers and service providers that meet stringent sustainability criteria, resulting in a 30% reduction in carbon emissions from transportation activities. To further enhance efficiency and user experience, SAP will introduce an AI-powered virtual assistant for transportation planners by 2026, which will automate 30% of routine planning tasks and improve planner productivity by 25%.
Bottom Line
SAP Transportation Management is uniquely positioned to address the complex and evolving needs of the logistics industry by combining its deep domain expertise, advanced technology capabilities, and extensive partner ecosystem. The strategic planning assumptions outlined in this report demonstrate SAP's commitment to innovation, sustainability, and customer success. By focusing on key areas such as AI, blockchain, IoT, and advanced analytics, SAP TM will enable customers to optimize their transportation operations, reduce costs, and improve service levels.
SAP's investments in cloud technologies, e-commerce solutions, and sustainable logistics partnerships will ensure that the company remains at the forefront of the industry, driving value for customers and stakeholders alike. With a clear vision for the future and a strong foundation in research and development, SAP Transportation Management is poised to shape the future of logistics and transportation management, cementing its position as a market leader for years to come.
Strategic Planning Assumptions
By 2025:
SAP will launch a dedicated transportation management solution for e-commerce and last-mile delivery, which will be adopted by 30% of its retail and consumer goods customers within the first three years of release. (Probability 0.80)
By 2026:
SAP will introduce an AI-powered virtual assistant for transportation planners, which will automate 30% of routine planning tasks and improve planner productivity by 25%. (Probability 0.80)
By 2027:
SAP will expand its market share in the SME segment by 35%, by offering pre-configured, industry-specific SAP TM solutions that enable rapid implementation and time-to-value. (Probability 0.65)
SAP TM customers will use SAP's logistics network modeling capabilities to optimize their distribution networks, resulting in a 15% reduction in overall logistics costs and a 20% improvement in service levels. (Probability 0.70)
By 2028:
40% of SAP TM customers will leverage SAP's IoT capabilities to enable real-time tracking, predictive maintenance, and dynamic routing of their transportation assets, resulting in a 20% improvement in asset utilization and a 15% reduction in maintenance costs. (Probability 0.75)
SAP will launch a blockchain-based platform for collaborative logistics, enabling 40% of its TM customers to securely share data and automate transactions with their trading partners, resulting in a 25% reduction in administrative costs. (Probability 0.65)
By 2028: The adoption of SAP's AI-powered logistics solutions will increase by 70% among its customer base, resulting in an average transportation cost reduction of 30% and an improvement in on-time delivery performance by 35%. (Probability 0.75)
By 2029:
SAP will acquire at least three emerging technology companies in the logistics space to enhance SAP TM's capabilities in real-time visibility, predictive analytics, and autonomous decision-making. (Probability 0.60)
45% of SAP TM customers will leverage SAP's predictive analytics capabilities to anticipate and proactively mitigate supply chain disruptions, resulting in a 30% reduction in the impact of disruptions on their logistics operations. (Probability 0.75)
By 2030:
75% of SAP TM customers will utilize SAP's Sustainability Footprint Management solutions to track, measure, and reduce their carbon footprint across their transportation operations. (Probability 0.80)
SAP will establish a global network of logistics innovation centers, collaborating with academia, startups, and industry partners to develop and test new technologies and business models for the future of transportation management. (Probability 0.65)
By 2031:
55% of SAP TM customers will use SAP's AI-powered freight matching capabilities to optimize carrier selection and capacity utilization, resulting in a 20% reduction in empty miles and a 15% improvement in carrier performance. (Probability 0.70)
By 2032:
80% of new SAP TM implementations will be cloud-based, as companies leverage the scalability, flexibility, and cost-effectiveness of SAP's cloud offerings, such as SAP S/4HANA Cloud and SAP Business Technology Platform. (Probability 0.80)
50% of SAP TM customers will use SAP's advanced analytics and machine learning capabilities to optimize their freight spend, resulting in a 10% reduction in overall transportation costs. (Probability 0.75)
By 2033:
SAP will establish a global alliance of sustainable logistics partners, enabling 50% of its TM customers to access a network of pre-qualified carriers and service providers that meet stringent sustainability criteria, resulting in a 30% reduction in carbon emissions from transportation activities. (Probability 0.60)
By 2035:
SAP will invest €1.5 billion in research and development for its transportation management solutions, focusing on areas such as autonomous logistics, advanced analytics, and artificial intelligence. (Probability 0.70)