Welcome to Part I of our new two-part series on bringing your trucking company into the 21st century. It is no secret that trucking companies have their own way of doing things. The push from paper to digital took a monumental effort. Many would say it was not until the ELD was mandated by the Federal Government that people even took digitization seriously. And that is what we want to talk about today: Digitization
While the term “digitization of freight” is tossed around as a buzz-phrase in the industry, what is it? You may be wondering what it actually means. How does the process of digitizing your freight operations define how freight gets moved? How does it define the broader efforts of your fleet?
The Trucking of 21st Century
Where should an enterprising fleet manager begin where digital technologies are concerned? For starters, you want to put a strong emphasis on automation, visibility, and interaction. But what does that actually mean? Well, for starters, fleets that do not ensure greater digitization in the freight transaction space will have a difficult time competing as we get deeper into the 21st century. Profitability will prove an elusive target.
Your competition won’t wait for you. Businesses within the transportation and supply chain space are rapidly moving towards new methodologies that govern digitization of your business assets. Just consider the movement towards utilizing blockchain in the trucking contracts space. This is something that wasn’t even conceived of a decade ago.
We enter a future where motor carriers, shippers, freight brokers, and many other interested parties are eliminating manual processes and paperwork. Will your trucking company be at the forefront of that change? This is where visibility comes into play.
Focus on Real-Time Visibility
Look at the way trucking has changed. Motor carriers can now plan their stops with far greater accuracy. They can reduce wait times and maximize hours of service with minimal disruption. Visibility speaks to unlocking hidden efficiencies for you, your truck drivers, shippers, and other partners in the supply chain. The key is to adapt to delays and book future loads with real-time location tools, which help improve both visibility and ETA.
Even more, bookers can identify addresses in the system early on and precisely plan for the load. It becomes easier to conduct reloads and keep customers up to date in real-time regarding where their shipment is. Conversely, this allows fleet managers to better plan inventories and service levels. Greater planning accuracy leads to better customer service – a win for everyone.
Because when your freight has greater visibility thanks to digitized tools, you can conduct fewer check calls and spend less time trying to locate a particular load. This not only keeps your truck driver happy, but it also prevents disputes over delays or penalties.
When you achieve true visibility within your own supply chain, you won’t get caught off guard. Whether due to unexpected weather events, intractable road hazards, port closures, border crossing issues, or other problems, if you aren’t ready, your shipments could be delayed and your customers unhappy.
A Changed Freight Environment in 21st Century
The fact is the age of digitization has changed how many motor carriers do their job. With increased technological capabilities, trucking companies have also become providers of in-house digital solutions. Whether it be for themselves or the carriers and shippers they interact with, it creates a streamlined and more profitable arrangement for all involved.
You can expect enhanced capabilities and streamlined communications when you upgrade your systems into a digitized environment. Web-based portals help fleet managers and truckers gain immediate visibility over freight. Carriers can also book loads with a single touch of a button, change and maintain preferences, view and change tracking information, buy or sell equipment, and engage directly with front-line or back-office staff.
By putting all your data in a digitized environment, you can also pinpoint where your wait times are the worst and eliminate them. If you know where your worst bottlenecks are at the touch of a button, you can quickly work to eliminate them.
Preparing for the Future of Transportation
Trucking companies need to embrace digitization and advanced solutions for one reason: They represent the future of freight. Smart fleet managers have their eyes on the future when they adopt new and advanced tools. They work hard to understand what the current technology landscape it and adapt to it.
Forecasting is also an important part of the digitization equation. To stay ahead in a competitive – and digitized – marketplace, trucking companies must be able to look around the corner and properly forecast what new products and services will position them with a competitive advantage in a crowded marketplace.
The best way to do it is to strike a balance between providing top-notch operational excellence while not relying too much on digital tools. Don’t view advanced digitization tools as nothing more than convenient add-ons to your current systems. They should be much more integrated and streamlined.
Changing How Freight is Moved in 21st Century
The next level of fleet digitization lies in the digital freight-matching space. Trucking companies and shippers use this technology to work more efficiently and improve the service end customers receive. And just about everyone is getting in on this game. From motor carriers to shippers, brokers, 3PL providers, warehouse owners, and suppliers and vendors that serve the market.
Interested parties are combining efforts to connect more loads to suppliers’ needs in record time. The goal is to evolve the linear supply chain into one that is more collaborative. Instead of moving shipments in a silo, companies use digital tools to work together to improve the operational outlook for everyone involved.
The reality is that in just a few years the discussion has completely changed. We aren’t talking about digital tools by themselves anymore. Now we are referring to things such as the “Uberization of freight.” These are completely new concepts to many in the trucking and transportation sectors. Fleets can now bring disparate data points together to make holistic decisions on where freight goes and how it gets there. This helps streamline operations and improve profitability.
Stacking Solutions for Greater Effect
The goal should be for trucking companies to use vendor solutions to “stack” their operations. By using a tech stacking strategy, fleet managers can deploy solutions in a more efficient manner. Interoperability ensures where one tool is lacking another picks up the slack. When providers provide comprehensive workplace solutions and integrations, paper and manual processes are left behind.
By using and collecting data better, not only are trucking companies making more money, but they are improving overall market conditions for everyone. This is how forward-thinking companies provide rate stability, low shipping costs, and industry-leading customer service. Still, without a comprehensive operational strategy, tools are just tools.
Always remember to keep people first when adopting new technologies. You don’t want to be a disrupter for the sake of being one. It is critical to adopt tools and processes that make sense for your business and operational standpoint. Always keep driver satisfaction at the front of your procurement strategy. Because if you want retain your best and brightest, you have to keep their concerns at the front of all your business decisions.
Procedures and Processes Evolve
The digitization of freight means that the entire freight marketplace is going through an evolution. Technology solutions are built to exceed the demands of shippers and customers.
Many trucking companies are also reinventing their brokerage segments. By focusing on building out a fully digitized freight market, both carriers and shippers gain greater visibility and control over shipments, no matter where they are. From best-in-class truck drivers experiences to routing, driver preferences, and next-gen solutions – digitization may be just the solution your fleet needs to take your operation to the next level.
One of the primary reasons that fleets move towards digitization and greater back-office automation is for nothing else to help their own employees. If they did nothing else (and they most certainly do), the time saved from back-office automation is a huge boon to your employees. Digital processes and technologies help them do their jobs quicker, easier, and more efficiently. In the end, it helps improve morale and employee motivation.
Many motor carriers also report anecdotally that digitization also improves relationships with front-line truck drivers. And since it helps you or your drivers better track miles and spend more time behind the wheel, it can also boost their pay. When they spend less time performing non-driving tasks, the better. They will appreciate you for it. Join us next time in Part II of our series on digitization in trucking!