Freight procurement encompasses all strategies, technology, and procedures warehouse managers use to collaborate with carriers to transport goods. This critical component of supply chain management includes identifying routes and transportation modes for the most cost-effective deliveries.
As the shipping industry faces uncertainty from shortages and regulatory changes, supply chain executives increasingly recognize that procurement software is critical for controlling costs, improving visibility, and scaling operations.
In this breakdown, we’re going to provide a comprehensive overview of the freight procurement software market in 2025. This will include a highlight of specific factors driving warehouse managers towards digital tools and how software features resolve those issues.
The procurement market is estimated at $9.82 billion in 2025, with that expected to nearly double to $15.75 billion by 2030. This signals not just an increase in the overall market share, but a steady increase in the rate it's projected to grow as well.
This growth is being fueled by the adoption of automation and technology to improve sourcing, carrier management, and inventory tracking. Centralizing these capabilities enables organizations to scale efficiently.
There are three common complexities in the manual freight procurement process that serve as roadblocks to greater efficiency. These challenges are the main drivers pushing warehouse managers toward digital procurement solutions.
Choosing carriers. Contacting them. Negotiating rates. Cross-checking to make sure you're getting the best price. The back-and-forth involved in manual procurement leads to time and frustration that quickly add up. Meanwhile, McKinsey noted that using AI-enabled software could save up to 15% in procurement spend, partially due to drawing data for financials and performance history to help inform decisions.
Manual processes are prone to human error which reduces your ability to track data accurately - if you can track it at all. This impedes your decision making in multiple ways from limiting your ability to better collaborate with carriers to making it difficult to anticipate future risks. 62% of companies reported they had limited visibility in the entire inbound and outbound process of transporting goods.
While many noted that complete transparency would be a decisive advantage in operational and cost efficiency, only 6% of businesses claimed to have achieved it. Embracing freight procurement software would shift these companies in the right direction, with many tools automatically tracking data and consolidating carrier information with real-time updates.
Manual freight procurement’s limitations on time and accuracy are major roadblocks in a business’s ability to scale operations. Lengthy negotiations slow down operations, and without accurate data, it’s difficult to maintain consistency across seasons or scale efficiently.
With the freight procurement software market continuing to expand, it’s important to recognize the potential benefits that other supply chain managers are reaping. For a strong example of what a freight procurement tool can achieve, look no further than ShipperGuide TMS.
ShipperGuide provides an intuitive interface for you to get real-time bids or negotiate within clicks. You can also create bids for contracts, choose your optimal transportation mode for shipments, and access rate benchmarking to ensure your rates are always competitive with the market. Additionally, ShipperGuide helps procurement teams reduce freight costs by instantly comparing rates across carriers, eliminating guesswork.
ShipperGuide provides real-time data and analytics on your shipments, customizable reports that offer deep visibility into traffic and performance trends, and scorecards to monitor KPIs relating to carrier performance. This information can then be used to make data-driven decisions towards optimization.
ShipperGuide consolidates all your freight procurement essentials in one intuitive platform, including carrier selection and document management. This ease of use positions your business to scale without experiencing bottlenecks as shipping volumes grow.
Data points to a steady increase in the adoption of freight procurement software as supply chain executives realize how useful they are for optimizing operations. With innovations like AI coming into the mix, freight procurement software is only going to become more accessible and effective at streamlining everything from appointment scheduling to shipment tracking.
The gap between organizations embracing digital procurement and those sticking with manual processes will continue to widen. There’s no reason to fall behind the trend. Book a demo with ShipperGuide today!