How to Choose Freight Management Software in Turkey: Market Trends, Challenges, and Tips


How to Choose Freight Management Software in Turkey: Market Trends, Challenges, and Tips

Turkey has a highly profitable eCommerce market and generated US$16.3 billion in revenue in 2021, surpassing Sweden and achieving the 18th-largest position in the global eCommerce market rankings. With a surge of 38%, the most significant Turkish eCommerce market is supported by a global growth rate of 15% in 2021. Hence, it’s the most common reason behind the massive growth of the freight management and logistics industry in Turkey, which is expected to develop at a CAGR of approx 8% during 2020-2025. Thus, businesses are actively looking for ways to manage their freight movements in a better manner, and smart freight management software in Turkey has a huge demand.

Such extraordinary growth is also a consequence of Turkey’s location in Europe and Asia. Here the leading growth drivers of the logistics industry are the propagation of seaports & airports and road & rail networks. However, one of the key market trends is roadways, which have the maximum market share for domestic freight transportation in Turkey. So, exporting automotive and manufactured items outside Turkey through roadways has been the significant driving force. 

Here, we explore 

Freight Management Software in Turkey: Key Market Trends, Challenges and Growth Drivers

Key market drivers for freight management software in Turkey

Due to its significant position in eCommerce and its global position in logistics, Turkey ranks 30th on the Performance Index of World Bank’s Logistics. Turkey’s local and international transportation networks have distinct differences regarding the current market scenario. Internal freight distribution, for instance, is dominated by road transportation. Due to shipping’s dominant market position, international trade is very different today. 

Trucking and road transportation handle 85% of domestic freight by volume, outpacing railways, which hold the second-largest market share with 5%. Once the cargo departs Turkey, however, the situation is very different. Shipping dominates international trade, carrying 85% of all freight by volume, followed by land transportation (11%) and air transportation (1%). Besides the great potential of Logistics in Turkey, it has the biggest problems of needing a strategic plan, a limited budget, and the absence of eligible workers. 

Next, we discuss some of the key growth drivers for freight management software in Turkey.

Predominant Road Transport

According to the European Parliament, the modal share of road freight transportation in 2013 was 87%. Turkey’s road logistics suppliers have seen a 47% tonnage per kilometer (TKM) growth over a ten-year period. A TKM of 224,084 tons was recorded in 2013, compared to 152,163 tons carried per kilometer of road in 2003.

The length of Turkey’s paved road network as of right now is 65,400 kilometers. The $4 billion North-Marmara Highway, which would extend Turkey’s motorways by 5,500 kilometers, is one of several build-operate-transfer highway building projects that are now underway. 

Hence, businesses are actively seeking freight management software in Turkey that comes with smart functionalities, such as real-time shipment tracking, workflow automation, etc.

Manufacturing and Automotive Sectors are Driving Growth

Turkey also possesses a robust manufacturing sector, which shares approx 25% of the country’s GDP. It also gives a massive boost to the Turkish logistics industry. On the other hand, the road network of Turkey has been crucial to developing this country’s logistics industry. 

That said, the freight forwarding market was reinforced by swift growth in the automotive and manufacturing sectors. Consequently, Turkey is the 15th largest in Europe and 14th major automotive producer globally, with an approximately 78% average export rate.   

However, increasing cross-border commerce, shrinking delivery windows, and evolving customer expectations are rendering legacy freight management systems ineffective, which is driving the demand for AI-powered freight management solutions in Turkey.

Middle Corridor Initiative

Due to Turkey’s advantageous location between Asia and Europe, the logistics industry is expected to expand steadily from 2018 through 2023. The Middle Corridor Initiative by Turkey, rising online sales supporting the e-commerce industry, rising government investment year over year to improve the state of the nation’s infrastructure, such as road & rail networks, and advancement of airports and seaports are some of the key growth drivers for the market. 

Therefore, the logistics industry will see a growing number of acquisitions and mergers among the players, which again calls for highly integrated freight management solutions that offer seamless collaboration across multiple stakeholders.

3PL Sector Is Growing

While the logistics market of Turkey has decided to grow threefold since 2002, the share of third-party logistics service providers has barely changed. The market is being led by large businesses that offer value-added services, with revenue increases exceeding $100 million USD. 

For 3PLs, however, who are able to advertise their additional services more successfully, there is still space for growth. 3PLs will focus their energies on structuring and public relations initiatives in the near future. Ongoing outsourcing is anticipated, which means there is a huge opportunity for smart freight management software solutions in Turkey that offer integrated 3PL management and advanced functionalities to track and monitor them in real-time.

Growth in the eCommerce Sector

Over the coming years, it is anticipated that global eCommerce sales will rise and global expansion will accelerate as new markets develop. East and Southeast Asia, with their expanding middle class and lagging offline infrastructure, will be the driving force behind this progress. is the dominant participant in the Turkish eCommerce business. In 2021, the store generated US$3.2 billion in sales. With US$1.3 billion and US$514 million in sales, and are the second and third-largest stores, respectively, after The top three retailers collectively generate 30% of Turkey’s online sales. This is yet another key growth driver for the freight management platforms in Turkey.

Inventory Procurement Is a Differentiator 

The procurement process is a leading differentiator, including identifying needs, buying requisitioning & approvals, confirming budgets, setting up vendor covenants, and invoicing reconciliation & quality assurance. 

Regarding Turkey’s manufacturing industry, inventory procurement helps source top-notch products for vendor management. Also, it helps manage the charges to maintain the right quantities of inventory to be distributed to customers. 

Now that we have had a look at the various key growth drivers for freight management automation in Turkey, let us move on to some of the key considerations to keep in mind while choosing one.

How to Choose the Best Freight Management Software In Turkey? 

Choosing the best freight management software in Turkey

Asset Optimization

Smart asset optimization reduces the turnaround time by ensuring that the vehicle capacity is optimally utilized and a maximum number of shipments are delivered in every trip. This reduces the operational costs in line haul, road freight transportation, etc.

Businesses may also avoid problems like U-turns, improve vehicle capacity & utilization, trace their shipments in real-time, and send automatic notifications to multiple stakeholders, including the end customers.

Integrated End-to-End Management

Reliance on human factors, which makes it impossible to unlock optimal productivity. On the other hand, having an end-to-end automation solution for all freight management processes ensures helps businesses manage, monitor, track and control every task via a single dashboard. 

Hence, having integrated capabilities to manage multiple parties, multiple operations, and real-time tracking of all shipment movements is yet another must-have to look for when choosing freight management software in Turkey.

Unified Collaboration

The benefits of collaboration go far beyond improved customer experience and measurable ROI. Everyone wants the quickest, most economical delivery operations these days, and unified logistics collaboration can make that feasible. In this era of collaborative platforms, many stakeholders and applications are deployed across the distribution chain to generate efficient operations and physical and information flows. 

This is how supply chains benefit from increased transaction visibility thanks to collaborative platforms. Simply put, another opportunity to save more money is the single most considerable advantage of unified collaboration in freight management.

Trust and Transparency

Transparent and trustworthy transactions and processes can assist shippers in making the transition from reactively managing transportation costs and results to successful management of market changes. Shippers can create a disruptive optimization strategy for the company by acquiring more clarity into fuel and freight costs. 

Smart freight management solutions help businesses track real-time freight movements, get predictive insights for incidental costs, manage every transaction, and audit every invoicing and billing automatically. 

Digitization and Automation

No matter what industry, every company involves repetitive human-intensive operations, such as data input or billing. Such jobs, however, take a long time to complete and are frequently subject to human error.

So, to save time & expense, make sure your freight management software enables you to automate operations, reduce duplications and errors, and guarantee equitable resource use.

Efficient Management of All Stakeholders

A freight management system should automate the management of all the stakeholders and empower the businesses to manage all of them via a single dashboard. This helps unify the communication and collaboration across all the parties, and ensures that the businesses are able to streamline all operations.

Shipsy: Smart, Scalable, and Custom Freight Management Software in Turkey

The end-to-end freight management software offered by Shipsy can assist businesses to overcome all their freight management challenges and ensure exponential growth. Being an intelligent AI-enabled freight management platform, Shipsy provides real-time shipment tracking for a consolidated view of both domestic and international shipments on a single dashboard. 

This real-time shipment tracking functionality helps reduce ETA SLA breach by 37%, boost customer satisfaction by 64% and improve delivery NPS by 26%.

Shipsy’s smart freight procurement functionality helps businesses stay updated on the current freight rates, automate RFQ across 50+ shipping lines and reduce their freight costs by 12%, lower order-to-shipping time by 12% and decrease shipment returns by 4%.

For more information on Shipsy’s smart freight management capabilities or to get started with the smart freight management platform, please get in touch with our experts and schedule a customized demo today!


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