Automation in the transport sector

07 Jun Automation in the transport sector

Like many other industries, the transportation and logistics sector is poised to grow exponentially with the help of technological advancements, among others. As the latest technologies redefine traditional business models, they must adapt to stay ahead of the competition. According to Mckinsey, many operations will be automated by 2030 as artificial intelligence takes over the many repetitive activities that logistics companies perform. With endless possibilities in machine learning, artificial intelligence, robotics and IoT, transportation companies are looking to automation to improve the logistics process.

Factors that increase the speed of automation

Due to the fierce competition in the logistics market, companies must keep their expenses to a minimum to remain competitive. It is often not an ideal solution to hire more workers to meet fluctuating supply and demand. That is why there is an increasing focus on automating processes.

Technical progress

Automation is also the order of the day in the transport and logistics world. This will play an increasingly crucial role in planning and execution, such as automated transport order predictions and optimizing warehouse locations in accordance with supply and demand.

automation in the future of the logistics sector?

Automated warehouse

Warehouse automation is one of the first areas that companies invest in when it comes to automation. On a larger scale, it involves automating existing processes to improve efficiency, reliability and accuracy, leading to better ROI. Bringing inventory to the order picker to minimize his movements within the warehouse, automated storage and retrieval systems (AS/RS), automated transport vehicles, automatic conveyors, etc. are some areas where automation can play an important role in a warehouse.

Automated trucks on request

You also see a trend among consumers: they are switching to the sharing economy. Greenwheels and Snappcar are some examples of how ownership is shared. The transportation and logistics sector is also witnessing the same principle in the form of automated on-demand trucks. On-demand autonomous freight transportation improves the efficiency of freight movements and reduces the higher costs of hiring and training drivers. The autonomous truck would work around the clock and get double the work done compared to non-automated trucks. On-demand trucks remove the burden of huge initial capital investments, reduce transportation costs and ultimately increase customers with competitive prices.

Real time tracking

Consignment transportation has always been a major concern for companies. Since on-time delivery of goods is directly proportional to customer experience. Real-time monitoring can enable logistics service providers to inform customers earlier if delays occur due to traffic and/or bad weather.

Automated analysis systems

In this era of “Data is the new oil,” transportation and logistics companies must leverage the power of data analytics to stay ahead of the competition. Organizations that rely on traditional or legacy IT systems cannot gain insight from the available data and therefore do not understand customer preferences and market dynamics.

Transportation and logistics companies have a vast amount of data that goes unexamined to generate insights such as churn prediction, demand generation analysis, and supply shortage prediction. By automating the entire system, companies can periodically create actionable insights and salespeople can act on them. Sales figures can be fed directly back into the system from sales POS, and the system can generate revised insights that best suit the current situation.

Automation: gateway to the future

Although transportation and logistics companies rely on advanced technologies to manage the complex network, they have not yet explored the commercial side of automation. When applied correctly, automation can significantly improve organizational efficiency, revenue growth, performance, reduce costs and, most importantly, increase revenue. MOCtb has a future-proof vision when it comes to automation. Please inquire about our working method Contact to record.