Digitalisation is revolutionising the logistics and transportation industry. Digitalization uses various unique ways such as streamlining logistics processes, improving supply chain visibility, and increasing efficiency through the use of technology. Some examples include the use of digital platforms for freight matching, digital tracking and monitoring of freight and so on. These digital solutions not only make the transportation process more efficient but also help reduce costs for both the shipper and the carrier. In this article, we will explore some of the unique ways digitalization is reducing freight transport rates and how it is transforming the logistics industry.

1. Identifies Trends and Patterns

Digitalisation also enables the use of data analytics, which can help businesses identify trends and patterns in their transport operations. This allows them to better understand their customers’ needs and preferences, and tailor their transport solutions accordingly. By using data analytics to optimise routes and modes of transport, companies can reduce their overall transport costs and pass on these savings to their customers.

2. Collaboration and Resource Sharing

Furthermore, digitalisation has facilitated the growth of the sharing economy, enabling companies to share resources and collaborate on transport solutions. This can lead to more efficient use of vehicles and infrastructure, and can result in lower transport rates for businesses and consumers. For example, companies can use platforms like Uber Freight and Convoy to connect with carriers and find the most cost-effective way to move their goods.

3. Focuses on Sustainability

In addition to reducing transport costs, digitalisation also enables businesses to improve their sustainability. Through the use of technology, companies can track and monitor their environmental impact, and make changes to their operations to reduce emissions and waste. This can help businesses to meet their sustainability targets and save money in the long-term.

4. Use of Advanced Technology

For example, digitalisation enables the use of telematics, which allows businesses to monitor their vehicles’ performance in real-time. This can help companies to identify inefficiencies and make changes to their operations, such as reducing idle time and speeding, to reduce their fuel consumption and emissions. Additionally, digitalisation enables the use of alternative fuel sources, such as electric or hydrogen-powered vehicles, which can help companies to reduce their environmental impact and save money on fuel costs.

5. Connect with Stakeholders

Another way in which digitalisation reduces freight transport rates is through the use of digital platforms and networks. These platforms allow businesses to connect with carriers, shippers, and other stakeholders in the supply chain, enabling them to share information and coordinate their operations. This can lead to more efficient transport solutions and lower transport rates, as companies can take advantage of economies of scale and find the most cost-effective way to move their goods.

For example, the use of digital platforms can enable businesses to participate in collaborative transportation, where multiple companies share a single vehicle to transport their goods. This can result in lower transport rates, as companies can split the costs of the vehicle and its infrastructure. Additionally, digital platforms can enable businesses to use intermodal transport, where goods are transported using multiple modes of transport, such as road, rail, and sea. This can lead to lower transport rates, as companies can take advantage of the different strengths of each mode of transport.

6. Reduces Transportation Costs

Furthermore, digitalisation has facilitated the development of new technologies and services that enable businesses to reduce their transport costs. For example, the use of drones and autonomous vehicles can enable businesses to move goods more efficiently, reducing their transport costs and increasing their sustainability. Additionally, the use of predictive analytics can help businesses to plan their transport operations more effectively, reducing the need for last-minute changes and enabling them to take advantage of cost-saving opportunities. Also, digitalisation reduces freight transport rates through the use of transport management systems (TMS). These systems allow businesses to plan and monitor their transport operations in real-time, providing visibility and control over all aspects of the supply chain. This enables companies to make informed decisions about how to move goods, leading to more efficient routes and a reduction in transport costs.

Summary

Overall, digitalisation has transformed the freight transport industry, enabling businesses to reduce their transport costs and improve their sustainability.