THE IMPORTANCE OF DIGITALIZED TRUCKING: THROUGH THE EYES OF A LOGISTICIAN
The modern logistical network relies heavily on road transport to move goods and services to their destination, and trucks form its lifeline. Trucking can be cost-effective only when the truckers are profited for being on the roads. Drivers have to reduce and eliminate unprofitable miles i.e., empty mileage, between loads where they have to drive an empty truck on the streets. Empty mileage has a significant financial impact on the freight industry. It threatens the trucker's job, increases the risk of accidents, and even adds to the ever-increasing environmental problems. American trucks cover over 10’s of billions of empty miles a year. Similar numbers are observed in Europe, Australia, the Middle East, and other parts of the world. Such ineffectiveness of the logistics systems causes enormous losses for the stakeholders: Unused freight capacity results in an annual loss of €100 billion in Western Europe, while Australia's worsening traffic congestions are estimated to push costs to $30 billion and $24 Billion in 2030.
"DIGITALIZATION FOR MODERNIZATION & PROGRESS".
The decrease in flexibility and the lack of tools connecting the shippers to the truckers returning from their missions has resulted in more wastage of time and labor and increased carbon emissions and traffic issues. A functional truck logistic app will be the answer to all these hassles. So many other problems can also be resolved with a mobile application and have been brought into focus by startups. Digitalization of logistical systems will help eliminate significant hurdles that diminish the profit for the industry. The primary problem is the middlemen as currently, goods are shipped only with the help of the middlemen, namely the freight forwarders and brokers who arrange load requests and set the prices. Then, there's also the core problem of obsolete shipping systems that are begging to be automated.
Here's a look at how the new-age digitalization will help overcome these challenges that have plagued the logistics industry.
ELIMINATING THE INTERMEDIARIES
Traditional shipping methods have always involved shippers, brokers, and carriers. Brokers include freight forwarders and customs brokers who act as intermediaries, where the forwarders can also oversee documentation and mobilize shipments based on sizes and shipper requirements. This third-party involvement complicates the process, and shippers end up spending extra money on booking fees. The drivers also need to negotiate prices all the time, and the rates are not always transparent as they can contain hidden costs of insurance, packaging, temperature control, etc. To make things worse, drivers may even take more than 60 days to get paid for the job.
These troubles can be addressed with the help of time and money-saving truck apps. Freight brokers can offer centralized and transparent pricing digitally through these intermediary platforms with direct instant payments. While traditional brokers take around 20 percent for their services, digital ones can reduce this amount to just 5 to 10 percent. Automated market-based rates and electronic exchange of legal documents make the logistics more efficient, leaving both carriers and shippers with fewer worries.
DIGITIZATION OF FREIGHT
While experts are worried that automation can replace the human factor, the present-day industry still relies heavily on truck drivers to get the work done. But the increasing inconveniences of the job have led to a decline in the number of truck drivers straining the industry, especially in the US and Australia, where the demand for transportation is growing rapidly.
Driving for 4,900 kilometers per week with nearly 11 hours at a stretch, sometimes even through inclement conditions, is no mean feat. Increased risks and manual tasks have necessitated the need to radically enhance the driver experience.
Manually calculating the mission time, rating stops on a paper map, doing loads of paperwork will become a matter of the past with modern applications. All of the trucker's everyday concerns, including checking the real-time weather conditions, planning the optimal trip route, etc., can all be performed through a single application.
PROVIDING AN “UBER” SOLUTION FOR THE TRUCKING NEEDS
Many latest apps have bridged the gap in the passenger transportation system, which previously lacked the tools to connect the customers directly to the service providers; a similar logistics software application will tackle the same problems faced by the industry.
An online platform where shippers and carriers can connect to find and fulfill requests will greatly reduce empty mileage occurrences, thus decreasing subsequent wastage. Drivers won't return from the mission with unfilled vehicles, and there will no futile fuel consumption, leading to a reduced carbon footprint. Apart from matching orders with drivers, a logistics app will also improve the truck routes. Drivers will also be able to find the optimal route for a particular vehicle and load type, stop availability, proximity to gas stations, and road conditions all in one application.
These and many more modern-day logistical woes have been successfully addressed through the cutting-edge technology at REDLOGIK.
Our flagship All-in-One integrated platform GWAY will help connect shippers, brokers, drivers, and carriers to generate game-changing effects in Qatar and within the global freight and logistics industry. GWAY guarantees increased efficiency in lesser time, deriving more profits for the stakeholders. This unique connected platform offers the freedom of a neutral marketplace, alongside the security and comfort of a digital freight forwarder. A step further, the novel RNTL Solutions offered by Redlogik provide a cost-effective and hassle-free renting experience not only for the customers looking to rent trucks or equipment but also for the drivers who can register on the application to gain access to a widened customer base while receiving enhanced booking experiences.