The transportation and logistics industries are perhaps one of the most vital industries in the United States, if not the entire world. On average, trucks haul approximately 70 percent of all consumer goods across the country, and that number is only expected to grow as the global economy continues to grow and change. However, while it is the most vital of all industries, it has also remained the most stagnant, with very little about the industry changing over the past several decades.

The potential for these digital changes is immense, allowing companies to work smarter by lowering operation costs while boosting efficiency.

Yet, we’re beginning to see what can be described as an age of enlightenment for the transportation industry, a digital renaissance. Something in which logistics planners and trucking fleet owners alike are beginning to dive into. These changes are covering everything from ridesharing, “smart” logistics, and even automated vehicles. The potential for these digital changes is immense, allowing companies to work smarter by lowering operation costs while boosting efficiency. Even going so far as increase environmental sustainability as truckers, planners, and shippers all learn to connect on a broader level.

The Growing Web of Interconnection 

In short, the digital age is built on the concept that just about anything is possible, including a sort of omniscience that is vital to running a highly efficient supply chain.  

One of the biggest advantages of this digital age is how interconnected everything is. The Internet of Things (IoT) is providing more data and more accessibility to that data than ever before. New software systems are able to track where freight is during every stage of its transportation and the condition of it during its trip. 3PLs and other intermediaries are developing digital platforms that can connect a shipper to a carrier with a few clicks, rather than an exhaustive list of phone calls, emails, and faxes. Customs documents can be uploaded and transmitted to mobile devices,  less demurrage and detention fees when a paper document gets lost in translation. In short, the digital age is built on the concept that just about anything is possible, including a sort of omniscience that is vital to running a highly efficient supply chain.  

Building On the Infrastructure 

Digitization within the transportation industry also has another, less obvious benefit. It gives developing countries easier access to the global market. As these countries haven’t built up their logistics capabilities to that of the U.S. or the E.U. attempting to break ground on this front is often both cost and time prohibitive. Having access to a digital platform allows them to “leapfrog” directly into digital and mobile solutions for logistics.  

“According to the All India Motor Transport Congress, there are close to 12 million trucks in India. The road freight volume in India is forecast to be 2,211.24 billion freight tonne-kilometer, growing at 4.7 percent,” according to a recent article from YourStory.com 

Market research from Novonous, ‘Logistics Market in India 2015-2020’ shows that India is a prime example of a country that can benefit from new, digitized logistics platforms. The report shows that the logistics sector for India approximately $300 billion, and expected to grow by 12.17 percent by 2020. Factor in that 90 percent of trucks in India are operated by single truck owners, and you can see the potential for connectivity and digital platforms.  

The Growth of E-commerce and Digitization 

E-commerce, of course, is at the heart of much of this digital growth as many consumers begin to veer towards a digital shopping cart, rather than brick and mortar stores. As E-commerce companies such as Amazon, Alibaba, and Flipkart begin to grow and attract more customers, the potential for higher logistics costs also increase. As it stands, India spends about 13 percent of its total GDP on logistics, versus China at 18 percent and the U.S at 8.5 percent. Even a drop of 4 percent in logistics spending could save India upwards of $50 billion.   

The visibility and scalability of a digital network will undoubtedly be vital for the growth of the global economy.

The visibility and scalability of a digital network will undoubtedly be vital for the growth of the global economy. Not only does it help to level the playing field for new players making the market more accessible, but it also helps veterans and legacy companies to operate more efficiently.  

Real-time visibility solutions can help tackle delays, productivity issues, accidents, diversion, theft, and damage.

“Mobile operators are uniquely poised to offer regional and global connectivity solutions for the logistics sector. These real-time visibility solutions can help tackle delays, productivity issues, accidents, diversion, theft, and damage,” says the Yourstory Team.   

“Governments can also improve the quality of logistics via measures like budgetary outlays, foreign direct investment regulations, clarity in classification of logistics players, tax structures, and requirements for open data sharing. This covers truck fleets and the warehousing sector,” they added.  

The logistics sector is heading towards a new digital era, that much is certain. Tech startups, along with forward-thinking incumbents, are bringing innovations and insights into the field and is shaking up the old ways of doing things. As this new era grows in years, it’s likely that we’ll be seeing the logistics and transportation industry in a wholly different light.  

Offering Intelligent Logistics To All Customers 

BlueGrace Logistics offers complete, customized transportation management solutions that provide clients with the bandwidth to create transparency, operate efficiently, and drive direct cost reductions. For more information on how we can help take your hard to understand and complicated data and turn it into easy to read and well calculated decisions data, feel free to contact us using the form below: