4 Ways Data Modernization Is Transforming the Logistics Industry

Data Modernization Is Helping the Logistics Industry Streamline Key Processes at Every Stage of the Buyer’s Journey

Feb. 22, 2024 | By Mike Smith

For most consumers, interest in the logistics industry peaks at tracking numbers and delivery dates. However, there’s a sophisticated network of data, forecasting and collaboration that goes into moving goods around the world. Streamlining this process is no easy feat, but cloud technology partners and cloud providers have firsthand knowledge of just how much work is going into modernizing the logistics industry.

In the transportation industry, major companies are investing in technology on a global scale, moving away from on-premises databases and manual processes to adopt cloud platforms and enable automation. Consumers may not know it, but these investments are aimed at providing a better experience and moving goods more efficiently. Here are four ways they’re achieving digital transformation.

Dock and Terminal Modernization

One might assume that the literal transportation of goods (aka moving a load from Point A to Point B) would be the most time-consuming portion of the shipping cycle. And that’s probably true. But that doesn’t mean getting a truck on the road is always easy.

Imagine you have a fleet of 4,500 trucks. In theory, the time it takes to find your load, hook up and perform compliance checks is 15 minutes. That’s if everything goes right. But when the processes you use are manual, it might actually take up to 50 minutes. Even assuming you do this only once a day, that’s 2,625 hours of time lost. Terminal modernization is changing that. Implementing technologies like Geo tracking, AI-enabled cameras for license plate verification, and automated security gates gets you much closer to that 15-minute goal. All that time saved goes right back to drivers, which means more contracts, increased profits, happier employees and quicker delivery times.

Load Bidding and Matching

Logistics companies rely on partners and independent carriers to help them scale beyond their internal fleet, deliver on complex shipments and optimize costs through local or independent carriers. Local carriers, for their part, are always looking for loads in their service area, which isn’t always an easy search. Instead of spending hours fielding inbound sales calls or scrolling through a rolodex of brokers to be the one making cold calls, both sides are hungry for a more efficient system.

Brokers and logistics companies are starting to leverage external-facing load boards, and they can take it a step further with automated matching and bidding. Algorithms utilizing AI can recommend ideal loads to drivers while negotiating the best price for both parties. Imagine a world where top transportation companies take a page out of the e-commerce playbook and use personalization to create self-service, increase engagement and lower operating costs through broker-to-carrier interactions.

Supply Chain Visibility

Consumer expectations for delivery services are higher than ever before, thanks in part to the technology that allows them to “see” where their packages are at any given moment. This visibility also benefits the network of partners responsible for shipping goods, optimizing the supply chain from beginning to end. However, achieving this synergy is easier said than done.

Building this digital network requires an advanced level of data sharing that maintains both accuracy and accessibility. It requires consent and collaboration from all parties, something that would be very difficult to achieve without the simplification of doing business digitally. Data sharing in our modern world allows different organizations to work together, providing visibility even when you don’t own every piece of the puzzle.

Dynamic Pricing

Pricing is a maze of calculations and forecasts. It’s what we call “a future’s game,” where you’re determining costs for loads today that might not be shipping for six months. What happens if fuel prices go up? What happens if a product is delayed or demand fluctuates? Mispricing loads can cost a company millions of dollars, which makes a robust, data-driven pricing model a must-have for the modern transportation titan.

By integrating multiple data streams, logistics divisions can empower their organizations with more powerful pricing models. They can adjust cost-per-mile rates on a daily or even hourly basis, provide third-party drivers with more accurate job availability and minimize profit losses through the responsiveness enabled by data availability.

The Improvements Don’t Stop Here. Business Transformation Is an Ongoing Process

Committing to digital transformation in logistics at the scale necessary to enact these changes is a huge undertaking. Many transportation industry leaders are working with experts like TEKsystems to implement the tools needed to streamline their adoption at every level. Agility, flexibility and visibility are the key factors to getting ahead in a digital ecosystem, and the transportation industry relies on those same core tenets.

Offering the best customer experience, whether you’re coordinating a fleet of third-party drivers or calculating optimal shipping rates, means constantly working to optimize your technology. You’ll be surprised by how far you can go when you’re fueled by data.