The transport and logistics industry is undergoing a significant transformation.
Operational inefficiencies are driven by market trends, and the newest technological trends are revolutionizing this sector. This is unprecedented: there has not been a time in recent history when transport and logistics have been transformed socially, economically, environmentally, and technologically.
These changes are exciting, but make it difficult to assess short- and long-term goals and investments. There is one area where a clear and beneficial outcome is evident, however. Based on in-depth reports that carefully analyze industry-wide changes, digitization and software-driven process changes are revitalizing the sector in remarkable ways.
The biggest challenges in the transport and logistics industry today are:
- Supply chain management
- Asset utilization
- Establishing digital business models
- Freight optimization and planning
- Improving operational efficiency
- Adoption of technology
We can already see digitalization at work within the industry, aiding administrative tasks, operations, and contracting. It is visible not simply as information and communications, but has broadened to include integrations and the ability to devise entirely new and innovative business models, processes and service provision.
Current trends in transportation and logistics include:
- Digital business models
- Big data analytics
- Location detection technologies
- Fraud detection technologies
- Digitization of the vertical and horizontal value chain
- Digitization of products and services
As these technological tools advance and grow with the industry, we are expected to see changes such as:
- Robotic Process Automation
- Predictive solutions for deliveries and maintenance
- Intelligent Transportation Systems
- AI Solutions
- Blockchain and Distributed Ledger Technologies
By embracing these technological advances, companies will reap benefits such as cost and quality, clearer insights into cargo flow and passenger information, and will enable their customers to have better convenience and updated information on transport services. These changes are driving a paradigm shift in the transportation and logistics industry, with the projected share of companies with an advanced level of digitization expected to grow.
Scheduling problems aren’t unique to transportation and logistics; they appear across several industries. But they remain one of the key issues to solve within transportation and logistics. Disruptions can be a major factor in lost income; for example, delayed flights cost not only revenue but also customer vouchers and overtime for employees. Transportation companies need to determine which of the vehicles in their fleet to use during delivery as well as the sequence of deliveries.
Accessing secure, reliable methods for scheduling effectively minimizes inventory costs (ensuring orders are scheduled to keep inventory at a minimum), flow times (the time it takes to make an order), makespan (the time it takes to complete a group of orders), and late deliveries. It also means maximizing the use of your resources.
Expenses within the transportation and logistics industry need to be continually reevaluated and analyzed to ensure the best use of resources.
- 8-10% of total costs for a firm are typically made up of logistical expenses
- Adding technological tools to your arsenal is a great way to save time and money
- Automated systems are cost-effective and improve operational efficiency, as well as improving customer satisfaction, scalability, and reducing manual errors
- SaaS providers that provide logistics automation allow for affordable and seamless assistance for your business
The prevailing issues present within transportation and logistics are so pressing that they have been studied thoroughly by academics. Papers rigorously illuminate the need for solutions to scheduling problems, break down manufacturers and distributors into stages, show how they can work together to find solutions, and identify where they are incompatible and require their own answers. There is a call to improve resource utilization and reduce operational costs, where some of the answers to these issues seem to lie in algorithms and improved models for scheduling and transportation planning. It is clear that a strong optimization of a scheduling model that encompasses both production and transport is paramount to the efficient coordination of resources.
Route planning, fleet management, and vehicle routing are the main problems in transport planning. Some solutions go beyond those suggested by academic research, offering real-world applications that can work for your business immediately. By understanding the problems from the perspective of someone who is actually in the industry, and then modelling the issue against its proposed solution, this is a much better and more useful way to reduce these complications.
Do you have an issue with the capacity of your delivery vehicles or understanding how to synchronize deliveries for the best time and cost savings? Are there planning problems you aren’t sure how to solve, such as staff or machine scheduling, terminal optimization, or time tabling? Apply software designed to assist with these problems, and see for yourself how quickly and effectively it helps solve them.
Route planning, particularly for intermodal routing, may require fixed mode selections. This can be aided by GPS to provide the best route times and avoid hazards. Algorithms can contribute to reduced cost, more efficient deliveries, and improved travel times.
The great news is the innovation in the new wave of startups, which are helping to shape a modern supply chain marketplace that wholly embraces game-changing technology. Some of the trends identified as gaining traction in transport and logistics for 2019 include:
- Digitalization
- Data analytics
- Automation
This is especially exciting, as the transportation and logistics industry has traditionally been considered less ‘digitally mature’ than other sectors, but now there are digital solutions specific to its needs. Payments, for example, have been revitalized with the introduction of modern, online payment systems. Faster and more accurate transactions is making room for the improvement of customer satisfaction and lowering costs for the business. As this sector grows and becomes more digitally mature, automation delivers improved efficiency and reduced risk.
In addition to the increased recognition of solutions for transport and logistics, consumers demand faster, more flexible deliveries, track-and-trace capabilities, and greater customization. The supply chain is impacted everywhere by these heightened expectations. Pair that with how logistics management systems are making for faster and smarter global supply chains, and it is easy to see that the future is in digital solutions.
Moving from old-fashioned manual systems that are paper-based and carry an increased risk of human error, the benefits of digital logistics are many:
- Increased sources of revenue
- Greater innovation
- Increased control and collaboration
- Analytics to help assess decision-making
- Enhanced responsiveness
- Faster and more dynamic planning
- Improved access to real-time data
- Greatly improved customer service and satisfaction
This Transportation & Logistics vertical shows how the rise of AI, machine learning, and improved self-driving technology is revolutionizing the industry.
Don’t run the risk of being left behind. By getting on board with this technological transformation, you can ensure your company reaps the same benefits and stays ahead of the curve.
90% of logistics companies already understand that data and analytics will be the key to their business’s success over the next five years. They know that data-driven decision-making is the best way to optimize operations.
Implement technological solutions today to reduce logistics costs, shorten delivery times, and optimize operational efficiency. Apply these tools to enable your team to access data in real time on a tailored digital platform.
To work with peak efficiency and to best manage your costs, optimal staff scheduling is crucial. This will mean gains in the quality, safety, and productivity of your processes, as well as making customer service and satisfaction a primary goal.
Time Tracker will work with your business to save time and money, optimize route times with geolocation, and automatically generate in-depth reports so that you can plan for the future. Try a free 14-day trial today and see for yourself. No credit card required. Cancel any time.