The Automation Gap

Why 83% of Transportation Companies Still Struggle With Manual Processes

A recent benchmark survey reveals a widening divide between logistics leaders and laggards. The difference? Automation, AI adoption, and viewing transportation as a strategic weapon rather than a necessary cost.

Transportation management stands at a crossroads. On one side sit the 17% of companies that have fully automated their operations, embrace AI-driven insights, and view logistics as a competitive weapon. On the other side, 37% remain stuck in heavily manual processes, treating transportation as a necessary evil while watching competitors pull ahead.

The 9th Annual Global Transportation Management Benchmark Survey from Descartes, conducted with 616 transportation professionals across North America and Europe, reveals this stark divide. The research shows that companies treating transportation strategically aren’t just working smarter. They’re growing faster, investing more in technology, and positioning themselves for long-term success while others struggle to keep pace.

The Strategic Shift Nobody Saw Coming

Transportation’s evolution from back-office function to strategic driver accelerated dramatically in 2025. A record 81% of respondents now view transportation as either a customer service differentiator or competitive weapon. This represents an 11% jump from 2024, when only 70% held this view.

The shift matters because it correlates directly with financial performance. Among companies viewing transportation as a competitive weapon, 79% report industry-leading or better-than-average financial positioning. These same companies expect revenue growth of at least 5% at rates 10% higher than organizations treating transportation as basic service.

Business growth now drives transportation management system expansion more than cost reduction. Some 48% of respondents cite growth as their primary driver for TMS investment, up from third place in 2024. Improved customer service follows at 46%, with cost reduction pressure at 38%.

This represents a fundamental mindset change. Transportation leaders no longer ask how to cut costs. They ask how transportation can enable growth, improve customer experience, and create competitive advantage.

The Automation Divide

The survey exposes a troubling reality. Only 17% of organizations have achieved full automation with AI-driven insights. Another 46% remain mostly or partially automated but heavily reliant on manual intervention. The remaining 37% operate with minimal automation and mostly manual processes.

This automation gap correlates directly with financial performance. Among industry-leading financial performers, 51% report full automation. That figure drops to 8% for middle-of-the-pack companies and just 5% for below-average performers.

The pattern repeats across multiple dimensions. Companies with strong financial positioning invest more in technology, adopt AI faster, share data more broadly, and treat transportation strategically. Weaker performers cut costs, resist technology investment, keep data siloed, and view transportation as a necessary expense to minimize.

One global manufacturing executive captured the challenge. “We realized procurement had outgrown its traditional role. Today my team is directly involved in strategic planning, market forecasting, and revenue growth initiatives. We’re not reporting to the board. We’re sitting at the table with them.”

The question facing most organizations isn’t whether to automate. It’s how quickly they can close the gap before it becomes unbridgeable.

The AI Revolution Takes Hold

Generative AI adoption has reached near-universal levels. Some 96% of respondents now use AI in some capacity within their transportation operations. Only 4% report no AI usage, and these holdouts are significantly more likely to view transportation as a necessary evil and expect limited growth.

The top AI use cases reveal where organizations see immediate value. Data entry leads at 41%, followed by route and load optimization at 39%. AI-driven vehicle maintenance predictions, automated load matching, customer service chatbots, and dynamic pricing optimization round out the top applications.

Companies with industry-leading financial performance adopt AI across categories at double-digit higher rates than below-average performers. The one exception is driver safety, where adoption rates remain more consistent regardless of financial positioning.

Shippers show 46% adoption of AI for data entry compared to 37% for logistics service providers. This suggests shippers face greater administrative burdens from managing multiple carriers and modes.

The divide between AI adopters and non-adopters extends beyond technology. Non-adopters are more likely to view transportation management as a necessary evil rather than strategic function. They expect lower growth rates. They invest less in technology. They operate more manually.

AI adoption has become a proxy for strategic orientation. Organizations embracing AI signal they view transportation as a competitive weapon worthy of investment. Those resisting signal the opposite.

Fraud and Theft Move Center Stage

A new concern emerged in the 2025 survey. Carrier monitoring for insurance, safety, and fraud jumped into the top three most-needed TMS capabilities at 30% selection rate. Carrier vetting and identity validation, new categories this year, were selected by 25% of respondents.

The concern is more pronounced in North America, where 33% selected carrier monitoring compared to 23% in Europe. This 10-percentage-point gap reflects the greater prevalence of freight fraud and cargo theft in North American markets.

Carrier identity validation and fraud prevention capabilities that barely registered in previous years now command significant attention. The rise reflects increased sophistication of freight fraud schemes, growing cargo theft, and financial pressure forcing some carriers to cut corners on insurance and safety compliance.

Transportation professionals no longer assume carrier legitimacy. They verify insurance coverage, validate carrier identity, monitor safety scores, and implement fraud detection systems. The trust-but-verify approach of the past has given way to verify-then-trust.

Investment Patterns Tell the Story

Technology investment intentions reveal which companies are positioning for growth versus managing decline. Overall, 80% of respondents plan to increase transportation management IT spend over the next two years. Some 23% plan increases of 5% or more.

The distribution of investment varies dramatically by financial performance. Among industry-leading financial performers, 84% will increase TM IT spend. That figure drops to 45% for companies with below-average financial positioning.

This creates a reinforcing cycle. Strong performers invest in technology, which drives automation and AI adoption, which improves performance, which generates resources for further investment. Weak performers cut spending, fall further behind in automation, see performance deteriorate, and have fewer resources to invest.

The gap compounds over time. Organizations that invested in transportation technology five years ago now operate with significant advantages in efficiency, visibility, and customer service. Those that delayed investment face the daunting challenge of closing a widening gap while competing against better-equipped rivals.

The Visibility Imperative

For the eighth consecutive year, shipment visibility topped the list of most-needed TMS capabilities at 40% selection rate. Carrier monitoring debuted in second place at 30%, followed by performance management and business intelligence dashboards at 35%.

The methods companies use to achieve visibility reveal the maturity gap. Real-time GPS and ELD tracking leads at 60%, up 8% from 2024. Carrier and broker shipment status portals follow at 50%. Disturbingly, 43% still rely on spreadsheets and email updates after shipment delivery. Some still call carriers and brokers for status updates.

Companies viewing transportation as a competitive weapon use real-time GPS/ELD tracking at 68% rates compared to 52% for those viewing transportation as basic service or necessary evil. The visibility gap mirrors the strategic gap.

Less-than-truckload emerged as the mode needing the most visibility improvement at 38%, displacing truckload at 31%. Ocean freight trails distantly at 19%. North American shippers prioritize truckload visibility improvement at 43% compared to 32% for European shippers, reflecting different freight patterns and infrastructure maturity.

The Road Ahead

The survey reveals an industry transitioning from tactical cost management to strategic value creation. This transition shows up in how companies measure transportation value, where they share data, what drives TMS expansion, and how they prepare for industry changes.

Cost per shipment remains the top value measurement at 61%, but contribution to revenue growth follows closely at 51%. Service level targets, contribution to competitive differentiation, and contribution to ESG goals round out how leading organizations measure transportation value.

Companies viewing transportation as a competitive weapon measure contribution to revenue growth at 60% rates compared to just 38% for those viewing transportation as a necessary evil. The measurement framework reflects strategic orientation.

Transportation data sharing patterns reveal the shift toward connected ecosystems. Supply chain operations lead at 54% for where transportation information creates value, followed by carriers at 52% and warehousing and distribution operations at 49%. All categories showed increases year over year, indicating information sharing continues to expand.

The growing recognition that transportation data has value beyond the transportation department signals the function’s elevation. When sales teams use transportation data to promise delivery dates, when customer service uses it to respond to inquiries, and when supply chain operations use it for planning, transportation becomes integral to business operations rather than a supporting function.

Key Takeaways

Transportation management is experiencing a strategic elevation that correlates directly with business performance. Companies viewing transportation as a competitive weapon report better financial positioning, higher growth expectations, greater technology investment, and more advanced automation than those treating it as a cost to minimize.

The automation gap represents the defining challenge. Only 17% of organizations have achieved full automation, while 37% remain heavily manual. This gap widens between strong and weak financial performers, creating a reinforcing cycle where leaders pull further ahead while laggards fall further behind.

AI adoption has reached 96% of organizations, with data entry and route optimization leading use cases. Companies not using AI are significantly more likely to view transportation as a necessary evil, expect limited growth, and resist technology investment. AI adoption has become a strategic signal.

Fraud and theft prevention emerged as a new priority, with carrier monitoring and identity validation jumping into top TMS capability needs. North American companies show 7-10% higher concern than European counterparts, reflecting regional differences in fraud prevalence.

How automated is your transportation operation? Are you measuring transportation value through cost per shipment or contribution to revenue growth? What’s preventing your organization from treating transportation as a competitive weapon rather than a necessary cost? Share your perspective in the comments.