Consulting Firm Warns of Internet Provider Overload

Internet-based transportation management service providers have proliferated at a frenzied pace -- so fast, in fact, that the market can’t support all of them, according to a new report by IDC, a MA-based electronic commerce consulting firm. “Internet-based logistics service providers are fighting for share in a market that can’t accommodate everyone,” said Romala Ravi, senior analyst for IDC’s eLogistics

Internet-based transportation management service providers have proliferated at a frenzied pace -- so fast, in fact, that the market can’t support all of them, according to a new report by IDC, a MA-based electronic commerce consulting firm.

“Internet-based logistics service providers are fighting for share in a market that can’t accommodate everyone,” said Romala Ravi, senior analyst for IDC’s eLogistics research group.

According to IDC, service providers are going through a steep learning curve. The challenges they face include pressures from financial backers, the slow rate of service adoption by shippers and carriers, and the hype and confusion that surround the exact services that different providers offer. IDC expects turbulence in the market over the next 6-12 months, but those that survive the bumpy ride will be presented with huge opportunities.

“Without a doubt, elogistics service providers are in for an interesting ride over the next year,” said Ravi. “Some are already striding ahead of the pack, gaining visibility and carving out a sustainable position for themselves. For others, the worst is probably just around the corner as they fail to successfully execute the model.”

IDC’s report, “Web-Based Transportation Management Services: Market Overview and Analysis of 18 Service Providers,” delves into the experiences of 18 elogistics service providers in the transportation management space. The report analyzes the service evolution, partnership strategies, target market, and marketing and sales strategies of the 18 providers.

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