How To Grab A Big Pie of Transport & Logistics Economy With Digital Transformation? Part - III
How To Grab A Big Pie of Transport & Logistics Economy With Digital Transformation? Part - III

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Summary:

Welcome to the Transport and Logistics Blog series from EvinceDev. If you have missed our other two parts in this series, then click on Part – I & Part – II to read or listen to the podcast. The outline of this blog is to spread awareness of various Digital Solutions. You can adapt them to grab the maximum benefits, increase business efficiency as well as revenue. It is our ongoing efforts to help your business to receive the big pie with transportation and logistics software solutions.

To begin with, we asked a simple question in our previous blog. Which of the following technology trends will transform the way ‘Transport & Logistics’ business? 

  • Blockchain via Security.
  • RPA via Increasing Efficiency & Cost-Cutting.
  • IoT via end-to-end Supply Chain Performance.
  • AI via Process Automation.

It is time to reveal the answer!

Well, apologies to burst the bubble, but there isn’t just one technology that can be marked as a clear winner. Primarily because with each day passing by, the digital logistics market is booming with immense innovation. We would be exploring these technologies and more up ahead in this blog.

RPA (Robotic Process Automation) and IoT (Internet of Things) will be entering into the market as full-fledged supply chain management solutions within five years. On the contrary, Blockchain (Distributed Ledger Technology) and AI (Artificial Intelligence) seems to be having broader involvement in the distant future.

It is essential for business owners to check whether which of these global logistics technologies stack is fitting well to their business operations & processes. Starting from back-office automation, asset utilization, managing repetitive tasks to optimizing vehicle fleet are a few of the takeaways of digital transformation in logistics. Whichever is the scenario, it does help in boosting everyday business efficiency by:

  • Speeding up the Entire Process.
  • Easy & Secure Digital Payment Option.
  • Reduce Human Error.
  • Behavioral Analysis of Customers as well as Drivers.
  • Limiting Paper Usage.
  • Saving Time.
  • Cost Reduction.
  • Helping Environmental Ecosystem.

The supply chain management solutions are evolving under sharing economy, green energy logistics, e-commerce logistics, last-mile logistics & cold supply chain. With consumers having more buying power than before, demand for transparency, affordability, visibility, convenience, and speed in delivery is becoming prominent.

On the contrary, economic sustainability is more than just a trend now for manufacturers when it comes to their environmental footprints. Logistics companies are exploring ways to make their supply chain more eco-friendly, whereas transport & trucking is focusing on low carbon emission.

It is the need of the moment to check how digital trends are boosting the transport and logistics industry.

1. Digitalization

An overview of the digitalization and its impact reveals that businesses have experienced an advanced level of the merger with transportation and logistics software. This has resulted in higher customer access, sales, channels & marketing, product development, and digital business models – brought in by logistics startups.

However, digital logistics also presents opportunities by simplifying & speeding internal processes, increased revenue, extended digital reach, reduced transport cost, and addressing the client’s expectations. The digital logistics framework is helping to not only redesign existing services but also include mobile solutions, digitized functions, and other back-end processes. Thus, digital trends in the transportation industry will create the most forceful impact, which will reshape the entire transport & logistics business.

Take a quick look at what T&L companies are looking forward to from the digital logistics platform.

Transportation & Logistics' Companies Expectation Towards Digitization
Transportation & Logistics’ Companies Expectation Towards Digitization – Digital IQ Survey by PWC.

2. Shifts In Trade & Route Solutions

This move presents an excellent opportunity for businesses to cut investment costs as well as open up new trading areas. The further trade route optimization will reshape the industry like supply chain strategies that can be modified to cut high logistics costs.

New trade routes & policies are upgraded now along with the transport corridors, which was uncommon before. This impact led to the development of initiatives such as ‘the Belt and Road,’ which further reduces transport costs.

Digital Solutions will not only enhance route optimization but also boost investment in transportation infrastructure by placing modern hubs, and intermodal terminals. Route solutions will pave the way for cross-border as well as regional markets in terms of shorter transit and delivery time. Consumers can benefit hugely from cost reduction as it means more extensive exposure to products & goods from developing economies as well as foreign markets.

3. Software-Driven Approach

The business process has immensely benefited from a software-driven approach. It brought emerging solutions such as ITS, Predictive Maintenance, RPA, Blockchain, and AI solutions to the light. The overall software approach helps in managing repetitive tasks, vehicle fleet, improving human and driver behavior analysis, and stabilizing delivery times.

Implementation of Autonomous trucking and delivery is ongoing. This resulted in increased efficiency as well as reduced the delivery time of commercial shipments.

3.1 Intelligent Transport System (ITS)

The Intelligent Transport System (ITS), which came from Information and Communication Technology – allowed companies to improve transport efficiency, better service level, communication, and save significantly with faster processes.

ITS directly impacts on improving safety & efficiency of transportation networks. The following are a few examples & solutions when technologies are merging with different elements of transport infrastructure, vehicles, and software.

  • Traffic Management System – To make transportation networks more efficient by sharing real-time information, sync traffic, and hence, able to reduce congestion and fuel cost.
  • Driver Management System – System to integrate and report breakdown, safety issues, anxiety, rash driving, and overall driver behavioral analysis.
  • Freight Management System – Gathering freight information and optimizing it to control the efficiency and conditions of the fleet.
  • Data Analysis – Using big data to analyze and monitor traffic whereas, reacting to any emergency or assistance needed on the road in time.
  • Toll Collection System – Automatically scanning tags of the vehicles moving through roads or highways, resulting in saving time.

3.2 Robotic Process Automation (RPA)

Robotic Process Automation (RPA) is a software technology that helps in eliminating manual and repetitive tasks with bots. RPA brings innovation in order fulfillment. It’s application steadily spreading in T&L segments such as posts, courier, express parcel, eCommerce, forwarding, and supply chain management.

  • Automation Tool – Automation of repetitive and physically stressful tasks will enable resources to be assigned to more complex tasks.
  • Departmental Usage – Autobots can pace up various business activities ranging from Transactions, HR services, IT, Finance & Accounting, and Document processing.
  • Asset Utilization – Increase in asset utilization and overall productivity of logistics infrastructure results in cost-effectiveness.
  • Warehouse Fulfillment – Automatic guided vehicles (AGVs) to sense tasks in the environment and help workers with picking, packing, sorting in the logistics supply chain.

3.3 Predictive Maintenance & Drone Monitoring

Predictive maintenance is to take preventive measures at the right time by foreseeing any events and responding to needs. Drone supervision is also catching pace in the global logistics technologies list and majorly used to check vehicles and infrastructure.

  • Cost Reduction – Use case of predictive maintenance to reduce downtime of the operation by preventing equipment or asset failure.
  • Quality Services – It helps companies to keep track of delivery times to ensure the full utilization of the company’s fleet.
  • Staff Safety – Knowing the condition of the equipment beforehand prevents any mishaps or accidents. It is resulting in better efficiency, safety, and comfort for the members.
  • Time & Cost-Effective – In transport and logistics software, drones are becoming accessible to cut the cost of operation, save time, and also maintain accuracy in different areas.

3.4 Blockchain or Distributed Ledger Technology (DLT)

Blockchain and other shared ledger technologies help in eliminating complex process layers in the global supply chain. The primary usage of Blockchain solutions is automation for warehouse activities, document flows, and payments. DLT solutions are also widely used in tracking and authentication of products.

  • Security – It helps in securely identifying products and aims to deliver higher service levels at a lower cost.
  • Efficiency – Due to automation, there is a lesser need for document processing driving internal processes with better visibility.
  • Transparency – Shared ledger allows secure and reliable tracking and source checking, resulting in higher process efficiency.
  • Reliability – Information stored in the blocks or network cannot be easily changed or edited.

3.5 Artificial Intelligence (AI)

The relevance of AI solutions seems distant in the future as per logistics trend radar. However, it is still quickly transforming the way logistics service providers operate.

For example, Qopius, an AI-based image recognition application that helps retailers to save money by identifying on shelf product availability & optimizing shelf stocking. As per the client’s requirement, we designed & developed the cutting-edge solution for the product stock management along with the alert system.

Read The Full Story of Qopius Acquisition on 18th February 2020 here…
AI’s Potential Impact On Consumption In Industries (PwC Rating) (Scores based on PwC’s AI impact index evaluation. Potential scores range from1-5, with 5 being the highest potential impact due to AI, and 1 being the Lowest).
  • Automation – Applying automation to vital logistics activities such as back-office operations to ensure successful delivery.
  • Predictive – Helping logistic providers & suppliers to plan the demand using data for a product or goods based on the trend.
  • Operation – AI-powered solutions to solve many of today’s logistics operations, such as material sorting, handling, and inspections.
  • Customer Experience – AI-based robotics solutions to enhance customer experience through personalized touchpoints, drive shipments volumes, loyalty, and retention.

4. Sharing Economy

The sharing economy is establishing its way into supply chain management, road transport, and freight forwarding. From car-sharing to less-utilized parking/warehouse space to industrial equipment – can be shared via digital logistics platforms. It is one of the finest ways to reduce the logistics carbon footprint.

The sharing economy will pave the way between shippers and carriers with real-time data flow and communication via digital logistics platforms. Especially, in the road freight management – sharing economy helps in limiting traffic delays, loading operations, communication lags. It is also believed that sharing economy is to work first-hand on bringing down process inefficiency in quoting, pricing agreement, shipment tracking, and payment collection.

For example, ASAP – a mobile & web app that helps anyone to transport their goods or products conveniently. ASAP is involved with the transportation of goods for the people in Nordic regions and soon was promoted as Uber of Transportation. ASAP received good media coverage & became the giant of on-demand transportation and expanded its market reach to the U.S.

Sharing economy solutions are not only gaining importance in the transport industry but also lowering the carbon footprint.

5. Low-Carbon Emission

It has become imperative to give utmost attention to environmental sustainability. The focus has to be shifted to low-carbon emission standards – making companies adapt to an eco-friendly transport & logistics approach.

Moreover, a decrease in natural resources and deposits will not only inflate the prices but also give rise to the proper allocation of resources. However, this will also result in channeling more towards the recycling of goods & products. A few other issues, such as climate change and the recent outbreak of coronavirus, are significant factors disrupting the supply chain.

Despite everything, the move to take on low-carbon emission has pushed the transport industry to take a few important measures. These measures are widely ranging from monitoring vehicle statistics, driver analysis, focus on low-carbon emission design, and e-trucks – all seem to show a promising possibility.

Last but not least, we wish to know what is keeping you from implementing new digital logistics technology in your business operation? Is it…

Conclusion: 

We hope that our three-part blog series effort to showcase the growth opportunities of the T&L industry has helped you to uncover the massive potential. Now is the best time, if you wish to increase revenue through digital transformation in transport & logistics.

At EvinceDev, we provide automation in digital transportation and logistics business. Our consulting and tailor-made IT solutions help you achieve real-time information as well as minimize logistics costs through inventory mapping. From startups to enterprises – all have benefited from our deliverables. May it be in fleet management solutions, real-time vehicle tracking, warehouse management or route optimization.


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Author Bio:

Maulik Pandya –  Digital Solution Provider, a Generous Friend & IT Consultant with the proven track records of “Delivering Growth”. I am a lifelong analyst and started my career in 2002. This wonderful life has provided me all the opportunities to explore Coding, Business analysis, Define Solution Architecture, Project Management, IT Consulting, Sales Head, Marketing Head, Operation Manager, Talent acquisition, Mentor and Leader. Apart from the professional aspect, I am a good husband, father of two beautiful daughters, excellent Garba lover (longest dance festival in the world), Zumba enthusiast, blogger and trying to be a good son.