Transportation And Logistics

The transportation and logistics industry is confronting immense change: digital transformation, new market entrants, changing customer expectations, and new evolving business models. If you want to remain competitive, now is the time for action.

As well as evaluation of the potential impact of emerging transport and logistics solutions, we have found that the primary forces transforming transport & logistics are:

1- Digitalization:

Today digitalization is about devising completely new business processes and models, including integrations across the value chain. It is more about leveraging the possibility of moving the point of purchase as well as important elements related to service provision into the digital environment. Businesses can also use digitalization to:

– simplify their processes,

– redesign their services, products and business models and

– reduce the impact of talent gaps.

Digitalization can be expected to reshape the way consumers interact with business.

2- Shifts in international trade:

new investments along trade routes and land transport will likely reshape international logistics. New trade routes will open and existing ones will expand, as emerging economies become more connected to the global economy.

Shifts in international trade are driven by:

– establishment of free trade agreements.

– emergence of trade wars and barriers to trade resulting from regulations.

– globalization of transport businesses.

– infrastructure development.

Such developments will lead to a lowering of the costs of transport and will enable the creation of new services. These investments and the opportunities for creating new services can together be referred to as “New Trade Route Solutions”.

 

3- Software-driven process changes:

Software-driven processes changes are expected to grow dynamically over the next few years, generating even larger benefits for business, but at current stage these solutions still need to find their way into the mainstream.

The following solutions are expected to reshape T&L as software-driven process changes:

– Intelligent Transportation Systems.

– Robotic Process Automation.

– Predictive solutions.

– Blockchain and all Distributed Ledger Technologies.

– AI solutions.

Companies can be expected to implement them to build cost and quality advantage and a better insight into passenger and cargo flow, enabling consumers to experience better convenience and stay ever more informed about (and connected to) transport services.

4- Changes in markets’ domestic commerce:

Substantial changes in markets’ domestic commerce can be expected over the next few years, fuelled by optimistic economic growth forecasts, development of eCommerce markets and the sharing economy and increasing M&A activity in the T&L segment. Solutions in this area will also be driven by changing consumer expectations and an ageing society.

There are a number of new solutions that companies can explore due to changes in domestic commerce to provide consumers with more affordable and innovative services, enabling more convenience in online shopping as well as new possibilities to share resources for everyday use:

– Leading brands looking towards opportunities for growing their sales online.

– eCommece businesses investing in logistics.

– CEP companies designing tailor-made solutions for eCommerce.

– Sharing economy.

– Logistics consolidations.

 

5- Machine-driven process changes:

Machine-driven process changes will be enabled in the longer term by the development of base technologies (including advancements in electro-mobility) and changing regulations. They will also be shaped by an emerging focus on environmental sustainability.

With wider application of the following machine technology solutions, T&L companies can benefit from increasing work efficiency, the automation of core operations and possibilities to fix bottlenecks and design new services:

– Robotization.

– Electro-mobility.

– Augmented Reality and Mixed Reality devices.

– High speed Rail (HSR).

– Last Mile Optimization.