Stay ahead of the curve by integrating disruptive tech with your systems
Foreword:
The Transportation and Logistics (TLS) industry is at the precipice of a transformative era. By launching new products and customer experiences with agility, TLS companies are switching from technology users to tech-driven innovators. This has helped the TLS industry leaders to be resilient in the face of market challenges and become customer-centric, efficient, and reliable.
This e-book discusses how businesses should look to integrate their systems from customer shipment order management, pickup, multi-modal transport, warehouse storage, and last-mile delivery with emerging technologies like AI/ML, the Internet of Things, computer vision, and much more and blend human expertise with digital ecosystems to become a purpose-driven, innovation forward industry.
Introduction
Like several industries, the TLS sector continues to evolve constantly. The change can be both a risk and an opportunity for new technology, new customer expectations, and new business models. Organizations should be agile to keep pace with the changing reality of the industry. As organizations strive to remain relevant, they must adapt to change, not only in the present but also in the future. Change is the only constant, and it requires crafting a digital strategy based on scenario-based thinking and exploring several paths.
Preparing for Future Challenges: Build on Current Resilience
The TLS industry has benefitted from several essential business trends of the past, like globalization, the evolution of sophisticated just-in-time supply chains, and the rise of e-commerce, to name a few. Still, it has yet to be smooth sailing lately. The recent economic downturn has hit the sector particularly hard. In the face of past difficulties, the TLS industry has exhibited impeccable resilience to become customer-centric, efficient, and reliable. What made the difference? Tech platforms and data-driven decision-making.
The industry is now taking a step forward and leveraging these capabilities as a launchpad to fortify against future challenges. Technological integration embraces AI, IoT, and data analytics to enhance operational efficiency, forecast demand, plan resources, and predict and preempt disruptions.
Diversifying supply chains and prioritizing sustainability measures, such as adopting eco-friendly practices and exploring alternative fuels, are further solidifying its adaptive capacity. Investment in resilient infrastructure, collaboration among stakeholders, and a focus on talent development will foster an environment ready to navigate unforeseen events.
Innovation Opportunities in the Industry’s Digital Landscape
The wheels of the TLS industry are not just turning but are whirling towards digital innovation. The ever-evolving digital landscape, with rapid time-to-market as the end goal, is pushing the industry to re-think, reshape, and re-invent how operations and shipments can be made better.
Digital technologies with adequate multimodal supply chain orchestration can fundamentally reshape traditional logistics processes. This enables organizations to streamline operations, save costs, improve CX, and enhance efficiency. To fast-track their tech transformation, organizations are looking to integrate their systems with cutting-edge technologies such as AI/ML. These technologies empower organizations to collect and analyze vast amounts of data, thus providing insights that can optimize routes, predict demand patterns, and improve supply chain management.
Furthermore, real-time tracking and monitoring leveraging IoT enhances inventory management, reduces waste, and enhances resource allocation. Blockchain technology brings security to logistics with Smart contracts that reduce fraud and expedite payments and documentation. With the emergence of digital marketplaces and platforms, stakeholders across the supply chain are connected, thus fostering collaboration and enabling seamless communication. This supply chain orchestration/interconnectedness is vital for efficient coordination between shippers, carriers, 3PLs, brokers, and consumers, facilitating smoother and more responsive logistics operations.
Automation and robotics can reshape the roadmap to warehouse management and last-mile delivery. Automated warehouses can optimize storage, picking, and packaging, thus enabling faster order fulfillment. Autonomous vehicles and drones are being explored for efficient last-mile deliveries in urban areas.
The industry’s openness to embrace digital innovations is propelling toward a future that is defined by increased efficiency, agility, and customer satisfaction.
Building a Competitive Edge Through Tech Advancements
The industry has undergone significant evolution, transitioning from the era of operations research techniques to the contemporary Logistics 4.0 era.
With so many technological advancements, a modern consumer expects more. To attain a competitive edge, TLS companies are exploring innovative ways to meet the ever-increasing customer demands. Today’s customers are unsatisfied with vague email communication about their package’s location and expected delivery time. Moreover, they are tired of using multiple apps as well.
By harnessing the possibilities presented by cutting-edge technologies, organizations can unlock several advantages, elevate their capabilities, and meet the demands of a progressive market. Thus, the technology is no longer just an ‘add-on’ but the engine that will drive the future of TLS. By embracing these advancements, organizations can build a competitive edge that’s not just about speed and cost but also about transparency, innovation, sustainability, and resilience. It’s time to shift gears and accelerate into a future where technology paves the way for a brighter, greener, and more efficient TLS landscape.
A Shift of Focus to “Smarter, Disruptive, and Different”
The rumble of engines has changed its tune. The TLS industry, long associated with clunky behemoths and carbon-spewing routes, is undergoing a tectonic shift. This shift will introduce a world of opportunities. TLS organizations must incorporate new technologies into the existing infrastructure to accelerate its tech transformation.
The TLS industry needs to shift its focus from “cheaper, quicker, and efficient” to “smarter, different, and disruptive” to meet the demand for delivering goods innovative and personalized. With the constant technological innovation, uncertainty is a new certainty, and forward-thinking is the new normal.
A Peek Through the Windshield- What Could a Smarter and Disruptive Future Look Like?
- Hyper-connected ecosystems- Imagine a future where trucks could communicate with warehouses through seamless data exchange that ensures fast loading, digital manifests, and zero idling at the warehouse
- Micro-mobility miracles- Influx of electric and autonomous pods and vehicles introducing agile last-mile solutions
- Logistics on the fly- Think about the possibility of using drones to ferry supplies to remote areas or robots to pack the unpacked containers in record time, making the sky (literally) the limit.
Case in Point
A 3PL increases its revenue by 40% by leveraging innovative and intelligent tech
Business Challenge
A 3PL had an existing quotations, pricing, and shipment scheduling system that lacked operational excellence, which led to human errors and high turnaround time. To stay competitive in the market, the company desired to rev up its operations by integrating disruptive tech into its process to enable agility, speed, accuracy, and efficiency.
Business Solution
The organization partnered with a technology services provider and leveraged the provider’s tech accelerator platform to develop an automated pricing application with a user-friendly interface. With the advanced technology integrated into the processes, the organization could place quotes instantly and accurately handle all complexities of the pricing mechanism. Intelligent automation infused speed, agility, efficiency, and accuracy into the company’s existing system, fastening its time to market and driving revenue and profit margins.
Benefits
Leveraging the tech enabler, the innovation-forward organization was able to:
- Improve profit by 25%
- Increase revenue by 40%
- Decrease load processing time by 91%
- Provide transparent, real-time status for all customers, in addition to load and shipment types, thus enhancing its CX
- Attain secure EDI data exchange – 10,000 per day
- Improved profitability by achieving an acceptance rate of 98.35
- Increased growth with 18.59 average annual loads per carrier
- Lowered Opex costs across development and marketing
- Real-time visual updates on vehicle movements 24*7
- Driver behavior monitoring
- Data/insight gathering regarding breakdowns or accidents
- Attainment of proofs for insurance claims
- Ensure stability and reliability
- Take data-driven, informed decisions for enhanced CX
Exploring Innovation Frontiers
Smart Tech’s Role in Transforming Supply Chain and Customer Behavior
Thanks to the ever-evolving technology, today’s TLS industry is all about time, accuracy, and transparency. Integrating tech-driven smart solutions has empowered customers with control, convenience, and transparency. Customers today want real-time updates on where their goods are and the delivery time. Availability and efficiency are the only keys to the ever-evolving customer preferences.
Real-time tracking systems, interactive apps, and user-friendly interfaces have revolutionized how customers use transportation services. The technological advancements offer instant access to shipment status and delivery timeframes and provide personalized options, thus fostering a culture of immediacy and convenience.
Case in Point
A Logistics organization enhances CX with live shipment status update
Business Challenge
An American logistics company’s existing customer portal for tracking shipment status was built on a legacy platform. It lacked several essential features for a seamless CX. To provide a contemporary digital experience to its customers while safeguarding its technological investments, the organization decided to redesign its customer frontend interface.
Business Solution
The organization partnered with a technology services provider with deep domain and technical expertise. Leveraging the technology provider’s ninja team, the organization developed an enterprise-quality application that was well-integrated, seamless, and agile. The application enabled the customers to track and trace their freight and access shipment-specific information.
While the new interface was similar to the old one for smooth transition of the customers, the state-of-the-art technology made the overall maintenance manageable. The technology partner’s tech ninjas developed an API framework.
Benefits
The enterprise-quality application, leveraging the partner’s tech ninjas, enabled the organization to
Intelligent Use of Data and Analytics to Improve Performance and Serve Customers Better
The TLS sector has access to more data than ever before. Intelligent use of data and analytics can help organizations improve performance, gain a competitive edge, and serve customers better. Adding ML and AI techniques to data analytics can deliver value to the raw data. According to Gartner, 75% of commercial supply chain management vendors will likely leverage AI and data science by 2026. Organizations harnessing AI can boost win rates and expedite review growth. Specifically, ML models analyze historical shipping patterns, seasonal variations, and external factors like weather or traffic to predict future demands accurately.
Case in Point
A 3PL gains a competitive edge with its AL/ML-powered pricing model
Business Challenge
A privately owned 3PL aimed to leverage disruptive technology to determine prices that would offer the most value to its shippers while maximizing sales and margin. The organization wanted to mine petabytes of data from several sources, such as transaction data, freight data, and data from internal systems, to anticipate market trends, identify micro-segments for target marketing, and track operational business patterns for timely asset management.
Business Solution
The organization invested in developing an ML model for price prediction with no precedence in the market. The organization partnered with a seasoned technology services provider and leveraged its product studio to develop an ML model for price prediction. Data structures were designed to refine algorithm models for accurate prediction. The organization captured market and forecasting intelligence from several accredited sources. The predictive engine then ingested the data gathered to provide pricing predictions/outputs for a customer quote response.
Benefits
The complex pricing model resulted in:
Empowering Visibility and Efficiency in Smart Logistics
Gen Z customers will no longer be satisfied with vague emails about location and expected delivery times. Customers gradually demand near-instant delivery of their goods and a single integrated platform or mobile application that combines their need for speed and convenience. Organizations must embrace interweb, IoT, and 5G technologies to boost capacity, stay competitive, and improve CX. Leveraging technology, specifically IoT, will connect the disconnected work of TLS, enhancing efficiency.
Intelligent logistics networks are on the rise, and there is a need for every item within the network to exchange information about the whereabouts, condition, and treatment of goods. A connected network will be able to calculate the best and smartest way to deliver packages to the end-users.
Case in Point
HD Fleet achieves rapid business scalability and competitive edge
Business Challenge
HD Fleet desired to leverage technology to scale its business with slim budgets and tight deadlines quickly and become a category leader. It sought a team of experts to develop a cloud-enabled application enabling 24/7 remote and safe monitoring of the entire fleet to safeguard vehicles from any contingency. Watch it here.
Business Solution
HD Fleet partnered with an industry veteran to develop cloud-based fleet monitoring solutions. The cost-effective and interconnected solution was built within a few weeks of leveraging the partner’s proprietary platform. The application ensured agility and video capture and rendering on a mobile or computer screen, thus providing the organization with a real-time view of the vehicles and the drivers. Real-time data extracted from IoT sensors enabled:
The integrated IoT into its processes also provided HD Fleet with the flexibility to scale and round the clock availability.
Benefits
The cost-effective solution enabled the HD fleet to:
Challenges of TLS Technological Re-invention
There is a high probability that every innovation presents new questions and raises fresh issues. For instance, autonomous systems will have their own set of regulatory, societal, and technological implications. Humanizing work is another significant uncertainty that must be addressed. Industry experts and technologists must find a way to facilitate collaboration between technology and humans. This will require a roadmap to augment the human workforce and adhere to new responsibilities.
Data, on the other hand, will be an essential asset in the future. As the data gathering and usage rises, regulators must introduce rules and constraints to safeguard data privacy and security. As the TLS industry redefines itself, technologists and industry experts need to come up with a set of ethics and morals.
Conclusion: The Transformative Journey is a Continuous Process
The TLS industry is transforming in unimaginable ways and at an accelerated pace. There will be a significant shift from a reactive system based on asset ownership to flexible networks led by collaboration. Moreover, groundbreaking technologies such as IoT, AI, and blockchain will continue to redefine the supply chain landscape through route optimization, enhanced real-time tracking and monitoring, and automated warehouses, to name a few. The goal is not faster or smarter machines but altering the way goods move and businesses navigate in the complex web logistics to outrank their competition. The transformative journey is continuous, promising an ever-evolving tapestry of innovation that reshapes the industry’s future in profound and unforeseen ways.
For more, visit Trigent’s website.