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Transportation & Logistics
With increasing customer expectations and increasing demand of digitization, Logistics companies are facing change never seen before.
New Technologies are facilitating better collaboration, operating models and greater efficiency. Together all these are re-shaping current Market place.
Estimated more than US$5 trillion of revenues at stake. In PwC recent Industry 4.0 study, the percentage of T&L companies that rated themselves as ‘advanced’ on digitisation was just 28%. T&L firms are in line with other industries in planning to invest 5% of their revenues per annum until 2020, but the next few years will be critical: companies that don’t start soon risk being left behind permanently.

Various new entrants, existing deep pockets companies joining the market and existing customers and suppliers are pushing the limits beyond conventional. Lack of digital culture, understanding of digitization need and training is the biggest challenge facing transportation and logistics companies.

Who are driving next Gen changes

  1. Start-ups drive new business models

    Start-ups are new entrants and to date most of these are in ‘asset light’ parts of the value chain using new technologies; for example, virtual freight forwarders. These assetless or asset-light businesses exploit digital technology to offer interactive benchmarking of freight rates, or match shippers with available capacity

  2. Big pocket Companies in other domain exploring T&L sector

    In Asia, Alibaba is setting up a JV (with port logistics operations and Store), Cainiao, to improve delivery services for its sellers. Amazon has plans to launch its own logistics offerings, a project, allegedly referred to as ‘Dragon Boat’

Existing Problems

Fragmentation, missing accountability, a lack of consistency in collaboration, partial standardization, broken delivery, partial traceability and unorganised predictability. Technology can be leveraged to solve larger problem set, help in gain new traction in market and open new vistas of opportunities as innovation progresses.

How Technology could shape the sector

IT standards

impact

  1. Enabling collaboration horizontally
  2. More efficiency and transparency

Uncertainties

  1. Companies’ willingness to adopt is uncertain due to data security concerns

Data analytics

impact

  1. Improvements in customer experience and operational efficiency in operations
  2. Greater inventory visibility and management
  3. Improved ‘predictive maintenance’

uncertainties

  1. Rate of development of data processing capacity is unclear
  2. Question marks around data security
  3. Social expectations around data privacy and security may change
  4. Regulation of data security and privacy may increase or be enforced more stringently

Cloud

impact

  1. Enabling new platform-based business models and increasing efficiency

uncertainties

  1. Development of costs unclear (once a certain scale is reached physical data centres still tend to be cheaper)
  2. Uncertainties around data security

Connect Fastcurve to get more insights and help you Digitize you existing Infrastructure or launch a new product.

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