Transport and logistics is changing at a frantic pace; innovations to improve efficiency and flow of freight from pick-up to drop-off are constantly incorporated into the supply chain. To become more successful, a freight broker system is essential to manage your extra logistics business. Data is the new fuel for the new economy. The quality of data and how to use this will make the difference for your business performance.
However, change is not always easy to follow. It’s often difficult to know which direction to take and how to avoid the hurdles that cause you to lose time and money. Here are the benefits and how to go about making it work for you …
The benefits for your company
For fleet managers, organising your fleet in a more efficient way is the ultimate goal as nobody likes to bring back empty trailers. The more valuable data you can gain about your trailer and its cargo, the more you can see ways to improve. In a time of growing competition, a good telematics technical package (like Trailermatics) can give you the edge by allowing you to keep a close eye on where your entire fleet is currently located and, crucially, where they will be when work becomes available. To get more on freight exchange volume from a digital freight broker system, you have to be connected just as in ‘The Internet of Things’.
In this transport and logistics revolution, new ways of freight distribution are emerging as digital platforms connect cargo with available transportation. The data of your trailer fleet can be used for freight exchange and to align with cargo jobs offered on a digital freight platform. Be proactive in your search for work, by being aware of where your trucks and trailers are, how much capacity they have and how quickly the job can be completed. Obviously, if your trailer has just arrived in another country, you need to find new cargo: the worst scenario is having an empty trailer driving back to your depot, which is a waste of money plus the vehicle is less steady on the road. This is where you need to monitor the freight exchange websites and bid on the jobs. If your bid is the best, you get the job! To be prepared for this, your trailers need a data modem to enable you to locate where the asset is at any given time.
Connectivity and telematics
Telematics technology is becoming increasingly important to the trucking industry and freight exchange, with new systems being adopted at a growth rate of up to 25% per year (FleetOwner, October 2015). The number of fleet management systems in active use in Europe is forecasted to grow at a compound annual growth rate of 14.9 percent from 5.3 million units at the end of 2015 to 10.6 million by 2020. (BergInsight 2016).
It could soon become the norm for all new trucks and trailers, mainly due to how useful these systems actually are for the industry by improving its connectivity. Telematics can help with maintenance and repairs, fuel efficiency, security, road safety, communication and navigation. The benefits include the collection of data from every connected trailer that can be pooled. Telematics also helps to increase customer satisfaction by reassuring them of exactly where the cargo is and when it will arrive.
Conclusion: it’s time to connect
Freight brokerage was traditionally done through well-established practices and processes, which still dominate, with the digital market at an early stage; but the times are changing quickly and it’s important not to get left behind.
Freight exchange platforms will become the new standard very soon and you need to have all the technical elements in place to compete in this sector. You must be able to locate and connect your trailer to the nearest pick-up point. This is where trailer telematics has become essential.
Total revenues generated exclusively through mobile-based freight brokerage are expected to reach €4 billion in Europe and €7 billion in the US by 2025 (as reported in The Economist, March 2016).
Freight broker systems are set to dominate the future of the industry, so it is vital for your business to examine the options and there’s no time like the present! To find out how you can benefit from a freight exchange system and how to bring your trailers technical up to date or swap your old fleet for a new one, contact the TIP team.