Make no mistake, digitalization is merely the pathway to the future of the industry. For an industry so vital to the entire world, the freight industry has been rather stubborn to change its ways. Sticking by the tried and true, fax machines whir and phones ring off the hook as shippers try to connect to carriers, book freight and make sure their goods get from A to B in good condition. For the last several decades, that has been the industry standard, until recently that is.
We are witnessing a technological revolution as the freight industry finally moves to the present age. Digital services are changing the game, increasing mobility, visibility and information alike. While this change might be coming in with fits and starts, make no mistake, it is coming, and the world is changing as a result.
Digitalization is Reshaping the Industry
We are already beginning to see the emergence of highly automated vehicles in many applications, paving the way for those that will be fully autonomous. Warehouses are beginning to incorporate robotics and automation, reinforcing the efforts of human labor and expediting what is typically the most time-consuming process of the freight industry. Blockchain is producing some prodigious effects in terms of information technology and logistics planning. Even e-Commerce is an industry that is picking up speed and outmoding the standbys of brick and mortar stores.
All of these changes, advancements, and innovations are being brought about by digitalization.
It’s the capacity of both the storage and the ability to share data that will be the driving force behind the revolution of the transportation industry. That capacity will mean that there is never an empty or impartial load; the most optimal route will always be chosen, and a number of other variables will be predetermined before the order is even sent.
Digitalization will be what drives innovations in a number of integral supply chain functions while adding new ones such as platooning, load matching and eco-driving. All of these innovations will focus on increasing efficiency without the need to reduce capacity. This means that even as demand rises, the supply chain will be ready to carry the load.
The Effects of Digitalization on Legislation
Of course, digitalization can do more than simply make the supply chain more efficient. There is also an enhanced regulatory effect that can be gained from it. While regulations are typically viewed with a negative connotation, such as the Electronic Logging Device mandate, there are some upsides to it as well.
Digital documentation can help streamline the process in a number of different areas. Compliance with federal regulations like the Hours of Service ruling can be easily done through the ELD. As the mandate was originally designed to make roads safer by removing fatigued drivers, an ELD can be a quick and easy way to show compliance while providing other useful information to both the carrier and the shipper.
Reduction of physical paperwork can also expedite customs processes, which are notoriously tedious and can drastically slow down the transportation process. With less back and forth on the phone and easy access via a digital platform, the necessary information can be shared quickly and easily, reducing the time and potentially costly penalties for non-compliance. This is just one of the many potential applications for digitalization of the industry.
A Digital Infrastructure for an Automated Future
When considering the potential scope of digitalization in the freight industry, it is necessary to understand that it’s not just a handful of companies or even countries that are participating in the technological revolution. It is the industry, as a whole, worldwide. While these little nuances and conveniences might seem novel now, they will inevitably become the industry standard in the near future.
Digitalization, however, is only the beginning. It is establishing the framework and infrastructure for which all other innovations are being built on. For any of this to work and succeed, it is going to be a continued collaborative effort as an industry to both embrace and adapt to the new way of doing things. — Digitalization is merely the pathway to the future of the industry.
Working With a 3PL Like BlueGrace
As the digital infrastructure continues to optimize freight, BlueGrace has been at the forefront, simplifying our customers businesses. BlueGrace makes it easier than ever to reduce the amount of physical paperwork with our FREE proprietary software, BlueShip®. BlueShip is user-friendly, completely customizable and has real-time updates, giving you a single source tool for tracking, addressing, and product listing. Fill out the form below to request a free demo today: