The trucking industry is in a phase of digital transformation, with connected devices bringing greater visibility and transparency across the supply chain. Yet, according to Silpa Paul, a Frost & Sullivan commercial vehicles industry analyst, the brokerage process has struggled to digitalize.
In the United States a large trucking company can accumulate 93 billion miles per year. That’s like driving around the globe 3.7 million times. Commercial long-haul trucks in the region typically operate with 25 percent empty miles which result from the inherent opacity and slowness of traditional road-freight brokerage processes. With more than 70 percent of all freight moved via road, road freight capacity utilization levels are therefore highly inefficient at present.
Let’s compare this to the airline industry. Forbes reports that, worldwide, the average load factor for commercial airliners has reached 81.9 per cent in 2018, meaning more than eight of every 10 seats on the average flight is full. Leading the way in IT and cutting-edge reservation systems early on, the industry set an example as empty seats, among other factors, started to erode margins.
The same goes for freight hauling where 3PLs are now automating how freight is priced, booked and shipped through AI, freeing up employees to expand business in other specialized ways.
At the Gartner Supply Chain Executive Conference 2019, Tim Evans, Vice President, Loadsmart will discuss how AI is revolutionizing the contracted model – and more importantly, what lessons the trucking industry can glean from the airline industry. Tim will be leading two sessions, one on Tuesday, May 14 at 07:30 AM and the second one on Thursday, May 16 at 09:45 AM.
At the conference, attendees can also see a demo of Loadsmart instant pricing capability, including the latest Microsoft Excel and Google Sheets integrations giving small and mid-sized shippers without a transportation management system the same capability as Fortune 500 shippers.
The team will be at booth 115. Onsite appointments can be scheduled ahead of time here.