Transportation at a Crossroads: Why 2030 Will Redefine Supply Chain Success

Written by Raghav Sibal, Vice President, APAC, Manhattan Associates

While transportation has long been the backbone of supply chains, its role today has become more pivotal than ever. Once considered a back-office function, it now sits at the centre of strategic discussions, influencing competitiveness, customer trust and long-term growth. New global research from Manhattan Associates, The Road Ahead: Unlocking the Future of Transportation Management, highlights this shift, showing just how important transportation has become to supply chains, and how quickly organisations need to adapt.

The research shows nearly 80% of global supply chain leaders already consider transportation as critical to success. By 2030, that figure is expected to climb even higher, with close to 90% naming it as a core driver of business performance. The concern is that existing Transportation Management Systems (TMS) may not be able to keep up. Eighty-seven percent of respondents fear their current systems won’t meet the rising demands for speed, cost control and resilience. Transportation, in other words, has evolved beyond just moving goods from A to B. Instead, it has become the ultimate test of whether an organisation can keep its promises to customers in an unpredictable world.

The Visibility Challenge

A major fault line runs through visibility. Despite years of investment, far too many organisations still operate with fragmented systems. Around 40% of supply chain leaders admit their TMS is not integrated with the rest of the supply chain. That lack of connection has real-world consequences with around 50% of organisations admitting they struggle to reroute shipments when disruption hits and have difficulties optimising labour scheduling in their warehouses and docks. When customers expect accurate updates and on-time delivery, these gaps are a risk to reputation and revenue.

The financial impact is equally stark. Nearly half of the organisations surveyed spend more than 10% of their transportation budget dealing with the fallout from poor forecasting or unexpected disruptions – money that could otherwise be invested in growth. Yet there is a light at the end of the tunnel. The majority (82%) of leaders believe advances in forecasting and planning will drive down freight costs in the next five years. The tools exist to make this possible, but closing the visibility gap requires a sustained commitment to modernising systems and processes.

The AI Ambition Gap

Often positioned as the silver bullet, many businesses are turning to Artificial intelligence (AI) to address transportation management challenges. Manhattan’s research shows that 61% of organisations expect to be operating with fully or near-autonomous decision-making within the next five years. Yet today, only 37% have deeply integrated AI into their TMS. The gap between ambition and reality is difficult to ignore.

Almost every organisation (99%) report facing, or expecting to face, hurdles when implementing AI. The most common barriers include shortages of skilled staff, inconsistent data quality and the difficulty of bolting new capabilities onto legacy systems. Against this backdrop, retrofitting AI into outdated platforms is unlikely to deliver the agility leaders are hoping for.

The more scalable option is to adopt modern TMS platforms that come with AI built in, reducing the need for specialist expertise and ensuring data flows consistently across the organisation. Done well, this can accelerate time to value and allow transportation to play its full role as a driver of resilience and growth.

Sustainability as a Non-Negotiable

Sustainability also adds an additional layer of complexity. For many organisations, it has become the most pressing constraint shaping transportation performance. In fact, 70% of businesses now describe sustainability as either a global mandate or a major source of pressure. Some organisations have implemented comprehensive reporting frameworks such as the Corporate Sustainability Reporting Directive, but embedding sustainability into daily decisions remains uneven. Only a minority are factoring it into procurement or operational planning, and even fewer have invested in carbon-friendly fuel strategies. Yet almost half of organisations expect the majority of their transportation to be sustainably optimised within five years.

This gap between intention and execution cannot continue. Regulatory pressure is only one side of the coin; the other is the growing expectation from customers who are increasingly aware of the carbon cost of what they purchase.

The Way Forward

Transportation leaders know where their capabilities need to be, but their systems are not yet fit for purpose. Visibility remains patchy, forecasting is draining budgets, AI ambition is running ahead of readiness, and sustainability remains too often an aspiration rather than an operational reality.

The way forward will be focused on building unified platforms that can connect across the supply chain, harness AI natively, and make sustainability part of everyday decision-making. With the right investments, transportation shifts from a cost and compliance burden to a driver of innovation and loyalty. Without them, legacy systems quickly become a liability.

To read the full report, visit The Road Ahead: Unlocking the Future of Transportation Management.