27 Mar 2019
Digitise or go home: Transforming your operations
A look at the technologies that logistics companies need to implement
Lasse Jiborn - Commercial Director of Intelligent Optimisation
Sub-optimal route planning is at the root of the problem, and it’s costing operators dearly. They already have to contend with high costs. On average, EU operators are spending around €40,000 alone on fuel per truck, and that’s only 20% – 33% of their total costs. Empty runs stretch margins thin with wastage in fuel, time, and labour. Another problem is the damage this causes to the environment. Heavy-duty vehicles, which also include buses and coaches, generate around 25% of CO2 emissions, and 5% of total greenhouse gas emissions, in the EU. (And as emissions standards tighten, the pressure on operators does too.)
Truck dispatchers have it tough when deciding routes. They have to consider the length and pricing of trips, empty miles, and whether to have a driver wait for a load at a destination or get to the next shipment. Their jobs are filled with uncertainties and the complexity of co-ordinating with moving elements.
The solution to inefficiencies within the industry is obvious. German-origin strategy and management consulting firm, Roland Berger, points out, “Technological advancements offer major opportunities for players in the industry to achieve higher efficiency and lower operating costs.”
These advancements come from digitalisation, which exposes the industry’s vulnerabilities. Embracing digitalisation can dramatically reduce the cost of operating a vehicle by up to 40%, Roland Berger reports. Many of the big players are already on board. For others, the good news is, there’s still time. Here’s a look at the technologies that operators need to implement.