Just last week, we discussed how innovation can help your business grow, moving industry or otherwise. Today, we provide a clear example of this story and how effective it can be. We decided to remain within the borders of the moving & logistics industry. This way, we believe that the example provides an even greater perspective. After all, if something can work in your area of expertise, there is no reason it couldn’t in other areas. And so, we introduce the ever-growing trend of the introduction of digitization to the concept of trucking. In other words, we aim to demonstrate how trucking digitization has already made its mark (and continues to do so).
How do we define digitized trucking?
The simplest way of explaining this concept is the introduction of automated technology in logistics and transportation. This comprehensive system does not only serve to improve your moving business with software. You can also use it to optimize the vehicle-to-infrastructure relationship during deliveries of material belongings.
The focus of trucking digitization is the introduction of remote-controlled diagnostics, automated communication, and a developed supply chain. The tools used to ease the heavy lifting of operations managers on which such a foundation is built include:
- GPS tracking,
- SMS, and
- real-time data analysis.
So, when you look at the bigger picture, the fact remains that trucking digitization is influencing the world of logistics and all related areas on a daily basis. As a matter of fact, EY predicts that the responsibility for the entire supply chain enterprise will fall onto the capabilities of digitized trucking systems by 2025. After all, more and more businesses are looking to reduce operational expenses and improve performance with the adoption of this trend.
3 ways in which trucking digitization is making an impact
Smaller moving businesses or younger logistics companies might face some troubles in terms of how best to apply this technology. The usual struggles occur over where to start, how it identify and avoid potential impacts, and of course – how to implement digitization on their trucks and forklifts.
And even though all this might seem like a whole lot of work and investment, it pays out in the long run. All things considered, trucking digitization can prove very beneficial for moving and logistics companies. So, to explore how this is – let’s look into the three major advantages that the application of this technology brings to your company:
1. Higher rates of utilization
One of the biggest issues companies in this line of business experience are with operational sinkholes due to a low utilization rate. And up until now, such matters were difficult to get the upper hand on – until trucking digitization, that is. Since this system can put to use advanced supply chain platforms (such as SAP), it makes matters like task delegation to each truck possible.
What these systems do is establish clear connections with forklifts and trucks in warehouses and communicate destination and content for the cargo they carry. And in the case of hazardous materials and MSDS, data is forwarded to warn for selection of the right trucks. How far all this goes can be seen from the IBM team-up with AOS to incorporate digitized trucking into their blockchain initiatives. And both companies have seen the fruits of their investments in the overall improvement of their logistics processes.
Trucking digitization introduces saving time otherwise spent on the proper allocation of resources. This way, all moving parts are put into the right place at the right time. As an added bonus, potential risks and mistakes are reduced and managers can focus on strategic planning rather than all the administrative work.
2. Improved integration
The aspect of integration is something of crucial importance to each company. And trucking digitization brings into play real-time data concerning
- shipping needs,
- estimated shipment arrival times, and
- external information regarding departure times to warehouses and customers.
As a result, deadlines are met more frequently while offering top-quality transportation services. And you will find examples of such successful integrations in many lead shipping companies such as UPS, FedEx etc. This system is particularly appealing to customers because they are able to remotely track their belongings while in transit. Additionally, you gain key performance indicators and metrics, letting you identify areas where you can improve existing processes and procedures.
So, small business owners can spend less time concerning themselves with the small everyday stuff and focus more on the expansion of their business. Less time worrying over minor tasks translates into less stress on the highest management level. And the less nervous the management is, the less pressure it puts on the rest of the company.
3. A boost in efficiency and productivity
By integrating cutting-edge materials handling practices into daily operations, trucking digitization enhances and boosts efficiency and productivity on both micro and macro levels. With its implementation, your focus shifts on:
- cost reduction,
- inventory optimization, and
- safety awareness.
All this put together and applied naturally results in increased efficiency and productivity.
Digitized trucking also enables business owners to become more involved in the internal working of their teams. And this leads to more integral growth inside a company, which contributes to the overall organizational development. And modern business psychology demonstrates that, more often than not, enhanced efficiency leads to self-awareness and an initiative towards innovation and progress.
In simpler words, all of this leads up to an increase in workplace morale. A safety-focused environment, satisfied employees, and profitability that reaches new plateaus on a regular basis – all these are potential scenarios that open up with trucking digitization. And when you put it all together, this is really everything any business needs to reach new heights.