The trucking industry and its associated logistics haven’t always been at the forefront of the digital revolution. Despite this, digitisation has and will continue to change the trucking industry.
5 Years Until Digital Dominance
The recent container shortages and supply issues highlighted during the COVID-19 lockdown are just some of the issues driving the increased digitisation of the trucking industry. It’s predicted that within the next 5 years digital systems will dominate trucking and supply chain management.
Digitisation and the Internet of Things (IoT) are changing the structure of most commercial activities. Those businesses that adapt and utilise these changes will maintain their competitive edge and create better growth opportunities.
Customers Demand Lower Prices and Faster Delivery
Other factors driving the digital revolution of the trucking industry are customer demands for lower-priced, faster deliveries. In the age of instant gratification, quick, costly delivery service is key.
Let’s take a look at some of the main aspects of the trucking industry that the digital world has affected.
Vehicle Tracking and Monitoring
By making use of GPS tracking systems, it has become far easier to track where vehicles are at any given time. These systems also allow the automatic monitoring of vehicle stops and durations.
The use of increasingly affordable sensors placed on trucks allows better monitoring of all of the vehicle’s systems. This has the benefit of allowing more efficient troubleshooting of any problems that do occur. Plus, it highlights potential problems before they arise, creating potential time and cost savings.
Integrating GPS and sensors with analytical software provides a range of benefits. These benefits for fleet management include more efficient maintenance and cost analyses. GPS-integrated analytics software can perform a range of complicated calculations. In doing so, it provides extensive reporting on a whole host of useful performance indicators, such as fuel efficiency and load utilisation.
Inventory Control
Digital inventory control systems are having a large impact on supply chain and trucking. One of the primary tools for this is RFID (Radio-Frequency Identification). RFID is drastically reducing the time involved in stock counts. Plus, it can provide fast and accurate information for ordering purposes.
Analytical software is playing an increasing role in monitoring product demand and assisting in the prevention of stock shortages. By pre-empting the varying demand for products, the stock holding of those products is easily adjusted. This ensures that there’s enough stock to fulfil high demand. There’s a secondary benefit too. Additionally, low demand stock is not left sitting in storage, taking up valuable space and costing money.
Logistics and Utilisation
Utilising digital logistics systems is providing greater route efficiency. The increasingly complex logistics involved in today’s logistics systems are more accurately calculated and quickly routed by digital software.
Integrating route analysis systems with digital vehicle tracking and inventory control systems allows for more effective utilisation of payload. These systems allow for the reduction in “empty miles”. They can plan complex routes that best utilise the full range of a particular fleet vehicle types and capacities.
The improvement of logistics and payload utilisation reduces operating costs and improves profit potential.
Integration and the IoT
We’ve touched on integration and the IoT above, now we’ll take a more in-depth look at this topic.
While there’s some resistance within the trucking industry to the increasing digitisation, it’s becoming more and more important to adapt to these changes. Increasing pressure from associated industries on both ends of the supply chain is also an important factor in the need for the trucking industry to continue to adopt digital technologies.
From the producers and suppliers of goods to the end-user, there’s increasing integration of the entire supply chain. Added to this is the increasing requirement for greater transparency across the entire process. Automated, computerised processes allow for greater transparency and reduce the chance of human error. Systems can also share data in real-time with all stakeholders in the supply chain, ensuring everyone is on the same page.
Examining The Automation Element
By continuing to adopt the digital revolution into the trucking industry, these requirements and pressures can be met head-on. Digital technology also allows for more automation of many of the mundane and administrative tasks involved in day-to-day operations. Everything from loading schedules to invoicing and bookkeeping is easily streamlined with the right software.
As IoT becomes IoE (Internet of Everything), the value and importance of digital technology will only increase. Some of the benefits were expanded upon above. There are numerous other benefits, some of which we will look at below.
Utilising digital technology means that many of the monitoring and reporting processors can now take place on mobile platforms, such as smartphones and tablets. This increased mobility has resulted in better response times and improved client and customer service. In turn, this has a positive influence on brand image and market representation.
This improved integration has resulted in customers and clients being able to monitor their deliveries directly. They can access information, such as where their delivery is currently and when it’s expected to arrive. These systems also allow for real-time updates of any delays or changes.
As more systems become integrated and IoT more widespread, we’re seeing an increase in the automation of many stages of the process. For trucking, this has the potential to improve safety and allow for greater integration between the various aspects of the industry. This greater integration could lead to inter-departmental improvements that were not possible otherwise.
A Digital Future Is A Better Future
The benefits of the changes brought about by the digital world to the trucking industry far outweigh any potential negatives. Companies that embrace the digital revolution and formulate effective change strategies are reaping the benefits of improved safety and better bottom lines.
Ever-improving technological advancements will continue to influence the trucking industry and necessitate evolution. Those businesses that effectively adapt will remain a strong presence, irrespective of the scale of their operations. Smaller trucking businesses that harness the advantages of technology may well find that it spurs on growth that was otherwise impossible.
Utilising digital technology is the future of the trucking and logistics industry. The case for adopting tech-driven solutions is clear, and the benefits even clearer.