The 2025 Annual TES Study reveals that Transport Execution Systems are now vital to modern logistics, leveraging AI and real-time data to enhance visibility, agility, and operational efficiency amid global supply chain disruptions.
Transportation Execution Systems (TES) have evolved from mere back-office support tools into critical platforms at the heart of modern logistics operations. This transformation reflects broader shifts in global supply chain dynamics, marked by increasingly fragmented networks, heightened customer expectations for speed and visibility, and soaring costs associated with disruptions. According to ARC Advisory Group’s newly launched 2025 Annual TES Study, TES platforms—to tender freight, secure carriers, track shipments, and manage compliance documentation—are now indispensable in driving measurable logistics performance.
ARC’s long-standing analysis highlights the contrast between Transportation Management Systems (TMS), which oversee the entire transportation cycle from planning to settlement, and TES, where real-time execution delivers tangible operational gains. The 2025 research underscores advances in visibility, agility, and speed as critical differentiators, increasingly powered by artificial intelligence (AI) enhancements. These intelligent systems dynamically select carriers based on cost, performance, and capacity; improve estimated time of arrival (ETA) accuracy by integrating traffic, weather, and congestion data; detect anomalies such as late pickups or customs holds early on; and automate documentation for faster, more accurate regulatory compliance.
The imperative for TES adoption is heightened by the continuing e-commerce boom and the rise of novel fulfillment models, as noted in ARC’s market reports. The surge in online retail has intensified pressure on logistics networks to provide real-time visibility and timely deliveries, markedly increasing demand for TES solutions in sectors like consumer packaged goods and food and beverage. These industries face acute vulnerability to global supply chain disruptions, making robust execution systems critical to maintaining service levels and meeting consumer expectations.
Technological innovations also underpin TES market growth. ARC’s broader logistics research details how IoT, AI, and machine learning are increasingly embedded into transportation operations to enhance risk management, supply chain planning, and asset tracking. This technology evolution facilitates a shift away from traditional Electronic Data Interchange (EDI) messaging toward real-time, cloud-based data platforms. The dominance of SaaS TES solutions reflects a broader trend toward scalable, network-wide transportation data integration, better equipping companies to manage capacity fluctuations and optimise last-mile delivery.
The enthusiasm for AI’s role in logistics execution finds strong validation beyond ARC’s findings. A recent study co-sponsored by Hyperscience and the Council of Supply Chain Management Professionals revealed that 98% of logistics leaders view AI as vital to back-office operations, with 70% planning significant investments in AI-driven automation. AI is revolutionising core logistics functions like rating, routing, and pricing, enabling faster decision-making and more responsive supply chain strategies. Industry experts anticipate that AI-driven efficiency could raise logistics productivity by up to 40%, transforming everything from demand forecasting to warehouse operations.
Moreover, digital transformation broadly is reshaping logistics through enhanced process automation, operational visibility, and cost reduction. The latest trends forecast unprecedented levels of precision enabled by AI-powered technology, streamlining workflows and multidimensional decision-making, which will open new business opportunities amid evolving market dynamics.
ARC’s 2025 Annual TES Study is now underway, promising comprehensive global market sizing, adoption benchmarks across industries and regions, and vendor positioning in this fast-evolving landscape. The research aims to capture the nuances of predictive ETAs, compliance automation, and the expanding role of intelligence in execution, offering participants early access to findings and influence over the market narrative that decision-makers rely on.
In this context, transportation execution is no longer an ancillary function—it is becoming the very foundation of competitive logistics. Companies engaging with ARC’s research stand to gain valuable insights and visibility in shaping the future direction of TES solutions, underscoring the strategic importance of these platforms for logistics performance in 2025 and beyond.
Source: Noah Wire Services
