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Is the New ELD Mandate Disruptive for the Freight Markets?

March 29, 2019 by admin Leave a Comment

The electronic logging device (ELD) mandate in December 2017 upended the freight markets by the capacity of its crunch. The new milestone, which begins in December 2019, expands regulation in two dramatic ways and it may end up being just as disruptive.

Application on mobile phone

Switch from AOBRD’s

The Automatic On-Board Recording Devices (AOBRDs) will no longer be deployed by the drivers since the new ELD requirement becomes more stringent. Fleets will no longer be allowed to deploy the AOBRDs that were implemented for the first two years of the ELD mandate.

Carriers with AOBRDs were once considered compliant, but come December 2019, they will need to switch. The biggest difference is that devices that are “intrinsically integrated” must be included by the ELDs into the truck’s operating system.

Cell phone apps that did not plug in are soon going to become non-compliant, including many of the legacy systems from companies we all think of as the dominant players in the industry.

It is estimated that more than 50% of the 3.5+ million Class 8 trucks now in commercial use will be required to replace or significantly upgrade the ELD system they are currently using. Driver behavior and fleet operation could be under some major changes due to the new ELD mandate.

Every truck in commercial use is included

Every truck in commercial use, not just Class 8 semi-trailers, has always been included by the ELD mandate. Class 3 through Class 7 are also covered, including FedEx, UPS, and Amazon delivery trucks. Also, local utility and plumbing contractor’s trucks are included in the equation.

According to the current mandate, if a delivery driver maintains an electronic log, it is almost always on a cell phone or other device that is not intrinsically integrated. But, with the new ELD mandate, if and when they travel 100 miles or more from their home terminal, they’ll all need to have an ELD device that meets the more stringent requirement of being intrinsically integrated into the truck’s operating system.

Currently, there are more than 3.7 million of these truck in commercial operation. It is estimated that more than 60% of them will need to install a compliant ELD. Otherwise, drivers who do not comply to the new ELD mandate are at risk of being fined whenever they travel more than a couple of hours from home.

Is the new capacity crisis possible?

When the first ELD mandate occurred, back in 2017, there was a full-on panic in the industry. But, as it turned out, no lasting impact was made. The first mandate was well publicized, therefore, the industry had enough time to prepare for it.

However, some disruption came along in 2018 and had a short-term impact on rates. Come the third quarter of the same year, most fleets had adapted to the new technology and the end result was not as dramatic as expected.

Following the new mandate expected to begin this December, even larger population of trucks will be under its influence. Improved technology will eventually lead to an even more efficient workplace. However, there is still one very big problem. A surprisingly large percentage of the industry is unaware of the looming changes in ELD requirements.

Filed Under: Journal

E-commerce and New Malls Bring Life to Pool Distribution

March 24, 2019 by admin Leave a Comment

Retailers have continued to redesign their networks to keep up with the rise of consumer’s demand and changing shopping behaviors. The right model for distributing high-volume goods is one of the key factors in the retail industry. With pressure on the industry to adapt rising, finding the quickest and most cost-effective way to keep retail products moving is very important.

Truck on the bridge in sunset

Strategies for retail moving – pool distribution

So far, modern pool distribution is one of the most used strategies. In the upcoming years, store-level competition will grow. That will bring new challenges to the specialty retailers in their attempt to enhance the customer shopping experience.

That will also put pressure on the logistics processes that help keep store shelves stocked and replenished, as well as those that ensure merchandise arrives on-time, particularly during peak shopping seasons.

Intensifying e-commerce pressure and the changing face of America’s malls are giving pool distribution strategy some new aspects. Pool distribution represents a unique way of sharing a common network of logistics services providers to manage the flow of goods from DCs/suppliers to the backrooms of numerous geographically dispersed stores – to substantially lower costs and increase delivery frequency.

The benefits of pool distribution

Nowadays, consumer expectations have evolved. And the mere benefits of delivery speed and cost-savings are not the only reason why pool distribution is good for retailers. There is also in-stock inventory, which includes in-store and online, precise fulfillment times, more frequent returns and flexible delivery options.

The ultimate goal for the retailer is not to have inventory in its distribution center, but to get it on the shelf. Therefore, in addition to the transportation and distribution cost-savings, this model greatly reduces transit time and streamlines delivery to the store.

Having merchandise at-the-ready ensures more timely replenishment when stores need it, and helps minimize the likelihood of out-of-stocks. That prevents your customers from eroding their loyalty or turning them towards your competition.

Imagine having five separate less than truckload (LTL) deliveries to a mall in one day. But now,  instead of five separate trucks, those retailers share a single delivery where each store gets serviced as one stop. The volume of goods moving through a dedicated transportation network is higher in that lane so the stores can be replenished more often. Results are the lower cost of LTL along with the higher speed of parcels.

Variety of innovative ways to use pool distribution

In order to compete with e-commerce retailers, who are able to be more responsive to shopper’s needs, pool distribution is used in a variety of innovative ways. For instance, retailers who use pool distribution have complete visibility into where merchandise is at a moment’s notice.

Modern pool retailers also have greater insight into replenishment lead times which is helping them to optimize in-store inventory management and replenishment programs. One of those retailers, Five Below, discussed its use of pool distribution in high-volume markets at last year’s Descartes Evolution.

The company explained how to achieve greater transparency and flexibility in managing inventory coming into its stores, and helping the company make better use of backrooms. Other companies, such as Caleres Inc., strategically use pool points themselves as inventory storage locations for fast-moving, peak season and/or promotional inventory.

Specialty retailers to meet the demands of modern-day consumers

From the clothing on the shelves to the shipments consumers get in stores, at work or at home, everything is touched by logistics. And, logistics is no longer a backroom function, it’s front and center as part of the brand experience.

And nowadays, specialty retailers need to ensure they are transforming to meet the demands of modern day consumers. Especially, since we live in a time when malls are becoming more of an experience, and exciting e-commerce companies are opening their first stores.A strategy used to optimize how, when and where inventory is received while freeing up employees to interact with consumers and close sales are the biggest benefit given by the pool distribution. That way, retailers are doing their job no matter who sets up shop next door.

Filed Under: Journal

Lack of Drivers – Good Price Higher

March 22, 2019 by admin Leave a Comment

The cost of moving household goods from trucking to maritime shipping are rising. Therefore, those goods are getting pricier. As Procter and Gamble spokeswoman Jennifer Corso explained that U.S. trucking costs are up 25% in comparing with the year before.

“A key driver of this has been increased demand for trucking and a driver shortage. These increased costs obviously put pressure on margins, hence our continued focus on productivity throughout the company to help offset these costs, as well as rising commodity costs” Corso added.

Truck driver on a highway

What seems to be the issue?

The main problem can be explained by the simple correlation between supply and demand. In particular, trucking has been squeezed for years between an aging workforce of drivers and increased tonnage demands.

President of Dayton trucking company Jet Express and American Trucking Associations’ past chairman, Kevin Burch, described this situation as a “perfect storm.” He said that all those commodities such as truckloads of toilet issue or truckloads of paper towels are going to cost more. “It’s reality. It’s going to touch everything.”

The significance of the trucking industry

Director of safety for Xenia trucking company Homerun Inc. Tom Milby explained the vast significance of the trucking industry in our everyday lives. “The trucking industry brings everything that you see. Your food, your cars.” Everything is transported either directly to consumers or to retail outlets — grocery stores, malls, brick-and-mortar outlets.

Kevin Burch said that the electronic logging requirements that went into effect in late 2017 are controlling hours of service for trucking. In addition, the number of truck drivers is down while shipping tonnage is up. “You’re going to need more people to handle the same amount of freight,” Burch added. “Well guess what? We have an economy that’s going like crazy right now, so that just compounds it.”

Big companies suffer the most

A long-time distributor of McDonald’s, Martin-Bower Co. is is raising delivery fees. That way, menu prices are affected. Tom Milby said that his company lacks the number of drivers – they have 200 but could use up to 300 drivers. “It’s just a struggle for us to get to that number. With the baby boomers retiring, millennials don’t want to get into the trucking business.”

Milby added that his company is looking for local and out-of-town drivers. Good drivers can always expect to make good money. “I’ve got drivers making $80,000 a year.” Aside from household goods, gas taxes in Ohio could also rise.

Trucking is not alone in pushing costs up

Recently, Ohio Governor Mike DeWine has unveiled an executive budget for fiscal years 2020-21 in which he has proposed an 18-cent-per gallon gas tax hike that would generate about $1.2 billion a year for roads and bridges.

Also, in January 2020, the International Maritime Organization is expected to impose new limits on sulfur pollution from ships on international waters. Stated imposition will certainly impact freight rates as well.

Filed Under: Journal

Detention Time Costs More Than It Seems

March 17, 2019 by admin Leave a Comment

Detention time – typically defined as greater than a two-hour wait – affects driver efficiency, shipping capacity, and safety, with a negative financial impact for all stakeholders. According to a survey by data analyst DAT Solutions, nearly 63 percent of drivers spend more than three hours at the shipper’s dock each time they are loading or unloading.

Lengthy loading dock wait times have plagued the trucking industry for years, with serious consequences for drivers and shippers alike. And the problem is widespread.

Ship on the dock

Significant time-loss affects a driver’s salary

Drivers waste significant time on inflexible appointments and waiting to load and unload. In addition to not being paid for weather delays, time spent sitting in traffic jams or waiting at border crossings, many truck drivers are not compensated for the hours spent waiting to load and unload freight. Consequently, time wasted waiting to load or unload represents lost income – and it’s not pocket change.

According to data in a white paper by J.B. Hunt Transport, of the 660 minutes (11 hours) of available driving time, an average of only 390 minutes (6.5 hours) is actually spent on the road. The Inspector General’s audit report estimated that driver detention is associated with a $1.1 billion to $1.3 billion decrease in annual earnings for U.S. truckers.

This shortfall translates into a loss of income of between $1,281 and $1,534 per driver per year, or 3.0 to 3.6 percent of a driver’s average annual income. Similarly, detention time reduces net income of for-hire motor carriers to the tune of $250.6 million to $320.9 million each year.

Crash rate increases with detention time

A mere 15-minute increase in average dwell time – a combination of detention time plus time spent loading and unloading freight – increases the average expected crash rate by 6.2 percent or the equivalent of one additional crash per 1,000 tractor-trailers or straight trucks on the road.

Detention time increases the risk of these crashes by encroaching on drivers’ available waking hours, contributing to fatigue when they are on the road. According to the most recent data from the Federal Motor Carrier Safety Administration (FMCSA), in 2015, 415,000 crashes occurred involving large trucks.

Indeed, the FMCSA report indicates that detention increases the likelihood of truck crashes involving fatalities or significant injuries. Additionally, the report found that, on average, every 5 percent increase in stops that incur detention time results in a 4.7 percent increase in expected crash rates.

“Shipper of choice” program minimizes wait times

Shippers incur detention charges intended to compensate drivers for undue time spent waiting to unload or load. If shippers are unable to streamline their operations to efficiently manage loading and unloading at their warehouse or distribution center, they can face chargebacks from customers who are unhappy about not receiving merchandise by the agreed-upon delivery date.

In addition to hindering supply chain performance and damaging carrier relationships, long load dock wait times impact labor costs, requiring overtime compensation for employees who must stay late to accommodate delays. Fees typically range from $50 to $100 per hour for any delay longer than two hours.

With the newly instituted ELD rules, a renewed focus on wait times is spurring major carriers and owner-operators alike to drop shippers that habitually impede freight movement with long wait times. In this same spirit, some carriers have launched “shipper of choice” programs to prioritize shippers who minimize wait times for drivers.

Given the freight hauling capacity crunch currently facing the industry due to the one-two punch of driver shortage and rising demand, shippers cannot afford to be blacklisted or they will face a serious challenge to cover their loads.

Online dock appointments

Helpful tactics for improving loading and unloading efficiency, such as implementing drop-and-hook systems and designating “live-load” dock doors are being used as a way to reduce detention time and take control of their inbound and outbound operations. Forward-thinking shippers are using technology to enable shippers, carriers, and consignees to collaboratively schedule dock door appointments online.

By distributing the responsibility of scheduling appointments across all stakeholders, dock appointment scheduling technology provides greater control over freight delivery and allows organizations to proactively minimize wait times. Open communication across the supply chain ensures transparency and visibility and also provides a clear audit trail to enhance compliance tracking, dispute resolution and managing chargebacks.

That way, carriers avoid frustrating detention time and shippers can manage inventory more efficiently, which reduces labor and supply chain costs. With technology-enabled dock appointment scheduling, carriers can recoup their time by minimizing inflexible appointments and reducing dwell time to increase capacity.

A real game-changer

Estimates in the J.B. Hunt paper indicated that, by eliminating just 30 minutes at the shipper and 30 minutes at the receiver, the extra hour a driver could remain on the road each day would be equivalent to 50 miles per day, or 12,500 miles per year (assuming the driver spends 250 days on the road annually). These carrier savings translate to increased supply chain efficiency, a mitigated risk of road accidents, and improved operational performance for shippers.

Shippers can minimize dock wait times for load/unload activities, manage inventory levels, increase warehouse efficiency by reducing peak resource requirements and reduce congestion by limiting idling in the yard while waiting for a dock door to become available. With greater visibility into inbound shipments, dock appointment scheduling can be a real game-changer!

Filed Under: Journal

Forklift Tracking Solution Lifts Warehouse Operations for Budweiser

March 15, 2019 by admin Leave a Comment

Beer making company increases warehouse utilization by switching from RFID-powered forklift tracking with SEWIO RTLS. The Budweiser Budvar Brewer leveraged Sewio real-time location system (RTLS) to improve warehouse utilization, decrease maintenance costs and get additional insights into their logistics operations.

Forklift in the warehouse

The flaws of a passive RFID solution

While the company was using a passive RFID solution in order to minimize human error in operating 20,000+ pallets with hundreds of varieties of beers using forklifts equipped with an RFID antenna at their chassis and RFID tags located at each of the tracked pallet positions, many problems have occurred.

Due to the easy desynchronization or even damage to antennas, the maintenance cost grew rapidly, and the system uptime was only 80%. Budweiser Budvar decided to replace the RFID-built system with Sewio UWB RTLS for indoor tracking using Decawave chip, in order to retain the process of minimizing human errors in logistics but crucially lower the maintenance costs and increase the system uptime.

The benefits of UWB RTLS

The newly acquired insights such as daily attendance, distance traveled and utilization of each forklift, together with heatmaps and spaghetti diagrams, have allowed logistics managers in Budweiser to better utilize the current warehouse, virtually growing it by 19%. With the newly implemented system, the reliability of the system itself has resulted in 99% of system uptime.

Head of Logistics at Budweiser Budvar, Pavel Pánek, confirmed that the benefits of UWB are in comparing it with RFID. “While the initial cost for RFID versus UWB is almost identical, UWB undoubtedly outperforms RFID thanks to lower maintenance costs, lower risk of damage and higher accessibility and scalability of the system”.

Companies using Ultra-wideband technology

CEO of Sewio Networks, Milan Šimek, explained why UWB is the proper technology to use. “In many uses cases, we see RFID and UWB RTLS complement each other well when integrated into a single solution. If our customer needs precise true location data provided by a scalable system with a low maintenance cost, UWB is then the right first and only technology to choose”.

Vice president Marketing at Decawave, Mickael Viot, agreed with their company’s partner. “At Decawave our goal is to make micro-location technology available to the masses by providing chips with state of the art performance at an affordable price. We are delighted to see partners like Sewio embrace the same philosophy and deliver RTLS systems that are cost competitive while delivering superior performance and capabilities to end customers”.

Filed Under: Journal

IMO 2020 regulations – turbulent year for the shipping industry

March 10, 2019 by admin Leave a Comment

Nowadays, an extremely pressing situation is happening in the logistics industry: according to a study by consulting firm AlixPartners, in order to maintain margins and cope with the costs of low-sulfur regulations from the International Maritime Organization coming in 2020, ocean carriers must “impose significantly higher fuel surcharges in 2019”.

Surcharges need to increase  

Consulting firm estimated the container shipping industry needs to offset $10 billion in “incremental” costs starting Jan. 1, 2020. Carriers operating Asia-Europe routes would need to increase surcharges by 40%, and those on Asia-Americas routes would need to increase fees by 33%, to maintain their financial standing, the study estimates.

  • Shipment on the boat

Tough year for ocean carriers

In 2018, carriers began to announce fuel surcharges related to IMO 2020, much to the chagrin of shippers. Many of the surcharges took effect at the beginning of 2019, a year ahead of the low-sulfur deadline, in order to offset costs of preparation for carriers.

IMO 2020 may present the most immediate costs for carriers to tackle, but ongoing financial strife and trade uncertainty will contribute to a tough 2019 for ocean carriers.

In the following years appears that the ocean industry will continue the financial struggle. The Altman Z-score measures credit strength and bankruptcy risk, and a score of 1.8 or lower indicates a high risk of bankruptcy. The aggregate Z-score of 14 ocean carriers fell below 1.8 from 2011 to 2017, reaching a low of 1.24 in 2016, the year Hanjin filed for bankruptcy.

What does the future bring?

According to a study, although score rebounded to 2.02 last year “it’s a reminder that the industry remains under serious financial strain”. Future trade uncertainty does not bode well for ocean carriers. Weakness is expected by Maersk, particularly in China and Europe.

Given the ongoing financial strain to ocean carriers, “shippers can expect pressure from carriers seeking to recover their added fuel costs and improve profitability,” the study said.

Filed Under: Journal

National Trucking Volumes Remain the Same as Last Year

March 8, 2019 by admin Leave a Comment

According to the national Outbound Tender Volume Index (OTVI) national trucking volumes are almost exactly the same as they were last year. Being one year old in term of following freight market’s movement, those results may come as a shocker to those of us watching market regularly.

Spot rates are down 10-15% YoY and tender rejection rates have dropped from over 24% a year ago to 7.26% as of March 1, 2019. indicating carriers are accepting contracted loads at the highest rates since the Tender rejection Index’s (TRI) inception in early 2018.

Truck on the highway

The Discrepancy between volume and capacity

There are several factors that influence capacity and therefore rates of trucking capacity. The availability of trucking capacity is not simply correlated to freight volume.  For example, volume has a definitive impact on capacity, but the rate at which it enters the market and distribution are also important factors.

Volume entering the market rapidly from multiple origins is more disruptive to capacity than large volume coming from one area slowly, over a long period of time. Basically, the difference between 2018 and 2019. consists of those factors.

Impact on contracted freight rates

Capacity must be limited or oversupplied for longer than a week or two to cause any significant impact to long-term trucking rates. In recent months, there have been trucks available where they are needed. This has pulled spot market prices down rapidly.

There have been a few of events that occurred throughout 2017 when trucks were needed in and around Houston, Florida and then all over the U.S. in a matter of weeks. The two major hurricanes and massive amounts of retail freight flooded the market in the fall of 2017.

Increasing freight volumes in 2018

The largest ports in the U.S, Los Angeles and Long Beach sparked the steady increase of freight volumes who characterized the end of the last year. Amid the trade war concerns, record inbound international volumes flooded the port cities from China.

The ports acted like a regulator in the way they could not offload the freight fast enough to create significant disruption. The lead time to get freight into the country helped carriers position their trucks effectively, as shippers gave them plenty of notice.

Freight market as it is today

The southern California markets of L.A. and Ontario account for 8.15% of the total outbound volume of the contracted freight market. It has grown slowly over the course of the past 9-10 months and the rest of the U.S. has been relatively stable. To put it in perspective the markets had 5.41% in early March of 2018. This volume did not come all at once like the 2017 hurricane and retail freight did in 2017.With more freight originating from more widely dispersed markets and capacity concentrated on the West Coast, one of the big questions heading into spring is how well the freight market will be able to maintain this stability as volumes begin to increase in other areas of the country. This past week, 91 of the 135 markets all showed increases in volume over last month and 82 of them show week over week increases.

Filed Under: Journal

Top 5 Innovation Trends Changing Trucking Industry

March 3, 2019 by admin Leave a Comment

For starters, let’s just say that trucking is surely not what it used to be. Smart solutions have inherently changed the way goods are transported around the world with analytics creating a more efficient supply chain – and the industry knows it. 64 percent of executives think that big data and the insights it brings will have a disrupting power that can pivot the industry forever, according to Supply Chain Management World research.

Highway in the dark

But why wouldn’t big data and innovation be changing the game? Everybody’s using it – Amazon, Maersk, Walmart, everybody. The world’s biggest companies are already integrating tech-driven and data-backed solutions to make their operations as efficient as possible. In fact, one study found that 98 percent of third-party logistics companies (3PLs) and 93 percent of shippers believed data-driven decision-making was essential to supply chain activities.

Technology is truly revolutionizing how trucking companies deliver, and it is not only about speed – lives and money are also being saved in the process. So, let’s take a look at five technology and innovation trends which are disrupting the trucking industry:

Revolutionary electric vehicles

You’ve heard the hysteria surrounding electric and autonomous vehicles, but the technology is more than hype: it really is revolutionary.

You’ve all probably heard about Tesla and its autonomous electric trucks, but what about Nikola, or Einride or even such giants as Daimler and Volkswagen? Each of these companies is also making inroads into the trucks of the future. Trucks continue to be leveraging the latest technology for safety and efficiency.

These innovations include lane-assist and assisted braking features, which will lead the way to true autonomy. And with more advanced trucks, break-downs will be less common and repairs less frequent. Such advancements herald a seismic shift to the industry. But most importantly, reduced accidents from self-driving and assisted technologies are going to save a lot of time, money and lives.

Tesla and Volkswagen going forward

Though trucks are yet to reach complete automation, they can stay at a consistent speed and maintain a safe distance from other vehicles. One challenge facing electric vehicles at the moment is their travel range and charging infrastructure. Last year, Tesla revealed that its new Tesla Semi Truck will be able to drive as far as 800 km on full batteries and can get an additional 600 km range with just 30 minutes of charging.

While Tesla presents such numbers with the most expensive version of their truck, Volkswagen is already looking into delivering better results and at the same time decreasing the cost of the electric vehicles with solid-state batteries. This technology has further advantages over the present lithium-ion batteries: higher energy density, enhanced safety, better fast-charging capability and the batteries are taking up significantly less space. Therefore, it can lead to a 2.5x increase in the distance range for the electric vehicles.

But as regular vehicles need gas stations, electric vehicles cannot exist without a proper charging infrastructure. While such giants as BMW, Daimler, Ford and Volkswagen join together to create a high-power charging network across Europe, Tesla is already looking to improve its ecosystem worldwide with Tesla Supercharger Network. With such pace of development, this technology does not just look promising – it looks inevitable, therefore the industry should better prepare itself and embrace the electric wave and the potential of advanced trucks.

What’s real cost-saver?

And with more advanced trucks comes more precise driving. Improved driving systems now allow for trucking rigs to arrange into formations. These formations, intricately controlled by computers which communicate with one another, follow closely behind other trucks in their fleet. It is all made possible through telematics: the sending, receiving and storing of information via telecommunication devices to meticulously control remote objects, such as trucks. The end result makes for a long line of heavy vehicles heading in the same direction, one after the next after the next.

This method, named platooning, is a real cost-saver in terms of fuel consumption and emissions. The combined line of trucks works to combat wind resistance and traffic congestion. Think about it: it also works as a safety feature for the public as well. Instead of many trucks dotted all over our roads, this method creates a single, predictable file of large vehicles.

A good example of this in practice is the work done by Peloton. The company specializing in platoon technology and has proven fuel savings of 4.5% for the lead truck, and 10% for the following truck. Win-win. Although not yet widespread, platooning could soon be a regular feature on European roads thanks to the Ensemble project. A three-year project from 2018 is set to analyze how platooning impacts upon infrastructure, road safety and traffic flow.

Internet of Things makes everything better

It is easy to see why the Internet of Things (IoT) is having such an impact on trucking: better location tracking, better environment sensing, better fleet management, better eco-friendly shipping, better supply-demand balance. It is just better.

IoT forms a network of devices, vehicles and appliances which can actively share data. For example, networks of sensors mounted throughout the truck can monitor everything from tire pressure to load stability. Semi-autonomous and platooned truck systems, like those being developed by Peloton, will generate even more data for carriers and shippers to manage and make decisions. This exchange can drastically improve supply chain management and minimize the amount of human intervention that is necessary in any given situation.

Take for an example,  Kuehne + Nagel, one of the world’s leading logistics companies. They are using sensors and a cloud-based platform to provide shippers with real-time information about the location and condition of critical freight in transit. Their solution, which brings the Internet of Things to freight monitoring, provides users with alerts based on temperature, humidity, pressure intrusion detection, shock and tilt at the pallet or parcel level.

AI in service of Big Data

The relationship between big data and efficient delivery should not be understated. It’s all logistics: exact information on the location and real-time data analysis is revolutionizing the supply chain. However, to make use of big data, companies need to ensure that the data itself is of good quality, which is not typically the case in logistics.

Fortunately, using Artificial Intelligence algorithms can help to clean and enrich the data, significantly improves the data quality. Big Data paired with AI also allows companies to forecast highly accurate outlooks for shipping volumes and to optimize proactively: planning for future performance rather than focusing on historical expectations.

Take for instance Geodis, the worldwide logistics giant. Last year they launched Neptune: a platform which uses real-time co-ordination of transport activity, reporting and analysis of key performance indicators, and document archiving. With big data at its heart, the platform allows hauliers and customers to manage all their activities from a single platform in just a few clicks.

You have to admit, utilizing such tech was the next logical step: “The combination of big data, artificial intelligence and geolocation are at the heart of our current and future thinking and aimed consistently at further simplifying our customers’ activities; guaranteeing them new sources of productivity”, according to Geodis Executive Vice President of Road Transport Olivier Royer.

Filed Under: Journal

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