Although the Logistics sector has been a laggard in adoption of technology, but the latest advent of technologies like IOT, Big Data and Data Analytics have set this sector on a path which is soon going to not just transform the sector, but give rise to a whole new breed of new paradigms in this sector.
The disruption started with technologies like IOT (Internet of Things) enabling sensors and actuators to be embedded in the moving truck, converting it into a traceable device, which is always connected over wired and wireless networks using the ubiquitous Internet Protocol. And the result was altogether new levels of cost optimisation, efficiency and operational control.
Similarly another technology that has become extremely relevant and useful is Big Data & Data Analytics. The whole sequence of transactions and processes, right from a customer creating an order, to vehicle allocation from market or owned fleet, and then executing the trip, generates huge volumes of data. And this data, when fed to some ingeniously crafted algorithms shows wonderful patterns and insights. These insights not only help achieve further optimisation of cost, asset utilisation and increased efficiency, but also give the food for thought for some unique futuristic models.
And it is this future that is keeping most brands excited, as they become a part of implementing the required platform and technology to build an optimistic future. Few brands build a modular platform where the different modules are going to act like LEGOs which can be further combined to generate altogether new business models and revenue streams in the logistics sector. Let’s have a look at some of these possibilities.
The best of both the worlds, Market place & Owned fleet – Both the models, the marketplace – that is procuring the vehicles from the market, and the owned fleet – that is having one’s own fleet of vehicles, pose their own set of challenges and opportunities. But, most of the Tech platforms, that unify both the models, provide a unique proposition of maximising the overall opportunities and minimising the challenges. It can beautifully compare various matrices in both the models vis-a-vis and propose a solution that creates the maximum value for the customer and the provider simultaneously.
A SaaS model with benefits – Many modules of the tech platform of many companies make it easy to create SaaS offerings for different segments in logistics and yet have the common loop that can be utilised to channel the demands created at one point to match the supply created at another point. For example the platform can serve small & medium transporters on one side and also cater to the managed services requirements of the corporate on the other. And then, it can do the required match making, which is not that easy to achieve in the current models where the two solutions work in isolation.
Creating unique buying advantages – As mentioned above, the platform brings together various segments, and in this process it creates a huge user base, which is the target audience for other industries. It would give various unique buying advantages to the users. For example a small transporter can leverage the platform to buy accessories and spare part for his vehicle at a reduced cost bringing down his overall operational and maintenance cost.
The list does not stop here, as these are just some of the possibilities that arise when technology starts playing with its full potential on the logistics sector.
This article has been authored by Yogender Verma, CTO, GoBOLT