The trucking and logistics industry worldwide and especially in India has long been due for a technology overhaul for meeting the new age requirements of efficient, trusted, transparent and on-demand shipments. The interactions between the shipper and the transporter are mostly disconnected while the existing GPS tracker based vehicle tracking systems technology is more of a tracking only technology than anything else that would help drive business efficiency and profitability. The Indian trucking industry is predominant with the unorganized truckers who form a majority wherein the ownership ranges from 1 to 10 trucks and technology adoption among them is very low. Adding to this, middlemen and brokers command a substantial market share with not much of value addition to the system.
As we are experiencing, the world is moving towards on-demand App based systems for satisfying most of our daily needs. We are getting used to ordering a pizza, groceries or a cab from the convenience of a mobile App. The traditional way of sourcing things and movements are passé. Use of technology has made our lives easy with almost everything available at the click of a button on our mobile phones. Today, we have more time to spend with family, colleagues and friends, while our online orders are being processed remotely and are delivered at the requested time and place of our choice.
I. THE NEED TO CHANGE
In the goods transportation sector, trucks form a majority of the preferred mode of transportation by road. The road freight market in India is pegged at around USD 120+ Billion and is expected to grow to USD 300+ billion in the next couple of years. Also, the Road freight volumes and the number of commercial goods transportation vehicles are growing at a CAGR of 9 % and 10 %, respectively. With this kind of market capitalization, the said industry requires coining a new term – “Trucking Commerce” in line with “E-Commerce” and “M-Commerce”.
To make good of the available opportunities, it will require technology adoption both by the trucker and the shipper that can bring them together on a common platform. Towards achieving this, a connected transportation technology that can bring benefits to the Transporters, Fleet Owners and Shippers is the need of the hour.
The Shippers need not wait for their contracted trucks to make their shipments. At the click of a button, they can source a truck that is ready and nearby to ship their loads. This can bring in efficiency in their distribution network, while saving on warehouse management as well.
Warehouse space is costly and the same has to be managed better to derive profits. Gone will be the days wherein trucks are lined up outside warehouses for getting unloaded. Warehouse managers can have better visibility on the space available or materials being shipped or arriving with the use of technology.
Truckers and fleet owners have long suffered to maintain their fleet running with non-availability of loads when they need. Their profitability has been taking a hit month on month with little or no information on the loads at least for the return journeys. With technology adoption, all of the fleet can be connected to available markets across geographies to source the required loads for the trucks as and when they need.
II. THE BENEFITS
Benefits of getting onboard a connected logistics technology is manifold. One use case will be that of automating and digitizing the processes of logistics fulfilment. In the current operational scenario, it takes a substantial amount of time and manual effort to source trucks for shipments and involves printing and handing over of a good number of paper documentation to the drivers for the trucks to proceed on trip. While information on trucks in-transit and consignment tracking is missing or partially available. A truck carrying a shipment has to mandatorily carry papers related to the shipments which can go into at least 10 pages. Imagine this happening for 60 lakhs plus trucks that are moving shipments in India. How will it be if paper can be altogether avoided with digitization?
Connecting the different stakeholders of the logistics ecosystem and bringing them on a common platform will enable efficiency and cost reduction, be it in administration or processes. With near real-time information being made available on a smartphone or a web application, decisions are faster with the click of a button. While the connected logistics application brings trust and transparency in transactions, it also allows shippers, transporters and drivers to interact and respond to events quicker.
Now is the right time to bring in the technological change that can enable the goods transportation industry in India to become more efficient keeping pace with other markets worldwide.
TRANSO can help you get on to the Connected Logistics Technology. Talk to us today.