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Technology is transforming the logistics companies we’re so used to working with.
Autonomous trucking, artificial intelligence (AI), and the internet of things (IoT) are really making a big dent in the way the industry works, but they’re also fuelling other changes in the industry, all aligned with the ultimate goal of moving to a Trucking-as-a-Service (TaaS) or Transportation-as-a-Service (TaaS) model.
In its simplest form, TaaS is about supply chain operators gaining access to trucks on-demand, be it an autonomous truck or one that is driven by a human.
In either case, however, the truck will need significant telematics and support to ensure tracking, mapping, management, and optimization of routes.
In fact, according to Frost & Sullivan, the surge in service and solution based revenue streams following the rise in digital transformation, autonomous trucking, urban trucking, platformization, and dealership evolution is expected to propel the US$11.2 billion TaaS market toward US$79.42 billion in 2025.
Further, according to the team, digital freight brokerage is expected to be the biggest market segment with revenue potential of US$54.2 billion, while the telematics devices segment is anticipated to grow from 25.7 million units in 2018 to more than 73.1 million in 2025.
What’s most interesting to note, however, is that the rise of TaaS will make life much easier for small businesses looking for new, innovative, and cost-effective ways to transport their goods, within the city and outside the country.
With the e-commerce boom in the APAC coming quickly, TaaS will be a game changer for small and mid-sized businesses looking to reduce costs and provide more timely and better delivery experiences to customers.
What really can TaaS do for the world?
Truth be told, truck original equipment manufacturers (OEMs) such as the Traton Group (formerly Volkswagen Truck & BUs), Daimler Trucks, and Volvo Trucks are driving the industry’s move to TaaS as a result of their investments in connected, autonomous, digital, and smart services,
Volvo, for example, has introduced Volvo Connect, a new customer portal that offers a single interface for digital services and functions, Volvo Trucks makes it even easier for customers to access the full benefits of digitalization and connectivity.
“Volvo Connect will also contain a marketplace where additional services can be subscribed to and activated. Users can adapt the interface so that the information and services most important to them are quickly and easily accessible,” explained Volvo Connect Product Manager Carina Holm.
Traton and Daimler are making similar efforts and also trialing subscription services in certain localities and regions.
In the future, Frost & Sullivan believes Truck OEMs will generate new sources of income as a result of the digital services they offer.
“OEMs will be looking to deliver new services, such as automated freight aggregation, as a value-addition to their fleet customers,” said Frost & Sullivan Mobility Analyst Silpa Paul.
Here are five new revenue opportunities that TaaS will create for OEMs (and dealers):
# 1 | Collaborate with startups
Investing in start-ups involved in digital technologies. This will help OEMs cope with a highly integrated ecosystem of real-time diagnostics, online booking of services and repairs, remote repairs, assisted repairs, remote diagnostics, and prognostics.
# 2 | Build a better omnichannel CX
Leveraging omnichannel customer touchpoints to develop a seamless, personalized customer experience across digital and brick-and-mortar channels.
# 3 | Score bigger deals online
Developing a robust CRM program that can convert digital sales leads, build customer loyalty, and sell after-sales services and maintenance.
# 4 | Collect customer data post-sale
Differentiating through a connected after-sales offering. This will enable OEMs and dealerships to gain additional insights into customer behavior.
# 5 | Offer new technologies as upgrades
Servitizing new technologies such as advanced driver assistance systems (ADAS), safety, health, wellness and wellbeing (HWW), and driver training.
CEVA Logistics to roll out CargoWise solution across its global network
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CEVA Logistics, part of the CMA CGM Group, a world leader in transport and logistics, has commenced the rollout of CargoWise, the integrated logistics execution platform.
With this strategic investment, CEVA Logistics will simplify and standardize all 4PL operational processes across its global network. CargoWise will be implemented over the course of the next five years, as part of a planned process, replacing multiple legacy systems and delivering greater efficiency within the business.
Improving operational efficiency
The switch to CargoWise will enable CEVA Logistics teams around the globe to have real-time visibility of freight forwarding and customs actions on a single platform.
As a purpose-built solution, CargoWise gives employees access to the same information in a single database across all functions, offices, countries and languages, furthering the CEVA Logistics digital transformation.
By the end of 2022, 50% of all CEVA Logistics locations will be fully operational on the CargoWise platform, with the whole project completed and deployed by 2025.
A company-wide digitalization
The move to CargoWise is a key part of CEVA Logistics’ IMPACT 2020 plan, which aims to both grow the business and improve operational efficiency. Other recent investments as part of that plan include the purchase of a majority stake in AMI Manica in Africa and the launch of the MyCEVA platform for customers.
Says CEVA Logistics’ CEO, Mathieu Friedberg, “By implementing CargoWise, CEVA Logistics will further improve productivity and efficiency as we strive to lead the way in multi-modal forwarding and contract logistics operations.
“Thanks to its experience across the transport and logistics sector, CargoWise is the right choice to provide this new digital platform. CEVA Logistics recently invested to improve the customer journey and this implementation allows us to develop a high-level employee journey as well.”
WiseTech Global Founder and CEO, Richard White, said, “We are extremely pleased to welcome CEVA Logistics to our global rollout family. This is a fantastic decision for their business and its thousands of logistics specialists.
“The world of logistics has experienced significant upheaval over the past six months with the digitization and automation of processes critical for future success. CargoWise will empower and enable CEVA Logistics to significantly improve efficiencies across its logistics and supply chain operations and continue to build its presence and strength globally.”
Licensed across 160 countries, WiseTech’s flagship logistics platform, CargoWise, enables logistics service providers to execute highly complex transactions in areas such as freight forwarding, customs clearance, warehousing, shipping, tracking, land transport, e-commerce, and cross-border compliance, allowing them to manage their operations on one database across multiple users, functions, countries, languages, and currencies.
Rhenus Group invests in Turkish route
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Leading international freight forwarder, Rhenus, has created a direct UK-Turkey transportation route, that ensures goods remain in one network door to door.
The route, which bypasses the existing stopover in Germany, harnesses the expertise of Rhenus Intermodal Systems in Turkey. It means Rhenus can assure clients that goods remain in one network, with unified quality standards and service transparency from collection through to delivery.
Customers in the UK can now take advantage of multiple weekly departures to Istanbul, Ankara, Bursa and Izmir – key strategic routes for shipments from the automotive, chemical, machinery, steel, textiles and consumables industries.
Headquartered in Istanbul, Rhenus Intermodal Systems has offices in Ankara, Bursa, G.Antep, Izmir and Mersin, alongside a network of customer warehouses in Muratbey, Erenkoy Kocaeli and Izmir. This allows UK customers to take advantage of local contacts within these locations.
Gary Dodsworth, Director at Rhenus UK, commented: ″Turkey is an important trading partner within the European market and plays a vital part in our continued global growth. The breadth of the Rhenus network means we have a really strong team in Turkey that, in turn, delivers significant benefits for our UK customers. We are able to offer a one-stop-shop for their forwarding requirements – providing consistency and high service levels that are more critical than ever during such unprecedented times.”
How a global freight forwarder simplifies its shipping experience in covid-19
BDP is not limiting itself as a logistics provider, we are a solutions provider to a customer having supply chain processes being part with an end to end visibility and freight forwarding is one of the supply chain activities in the processes.
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BDP International, India Managing Director Pavithran M Kallada in an exclusive interview with Freightcomms to capture his thoughts on the situation of the logistics industry and the fast adoption of technology.
What are your views on global digital freight forwarding? Is the launch of BDP GO a stepping stone for BDP to change as a digital freight forwarder?
Digitization is not anymore as a buzzword, but it is a reality and that’s a compulsion today in the new environment for a business to go forward. BDP has always embraced digital initiative in logistics years before and we were among the early adopter of technology in supply chain services which digitally interface with our various stake holders externally and internally both of our internal and external stakeholders . When I talk about digitization we started as a phase from internal and then externally to certain way I won’t be wrong even stating that bit earlier than the market fully ready but today it is the market which began demanding or probably heading ourways.
BDP has its customer facing technology such BDP Smart®, SMART Vū® which have been well integrated with our customers and provides them an end to end visibility. It is not in the form of just track and trace but also giving a customer tool which enables them to analyse their business and supply chain milestones and key components which enable them to make decisions faster.
The launch of BDP GO will take us to the next level wherein customers can have one click international freight shopping 24×7. BDP GO also enables instant and transparent freight comparison, booking, and tracking until cargo delivery to final destination.
BDP GO streamlines and simplifies the shipping experience for our customers, while still maintaining the high level of service that BDP stands behind. There are many digital apps on the market, but BDP GO takes it a step further by integrating the operational components to enable a customer end to end visibility from the freight procurement till the executions and delivery combined.
The key objective of BDP GO is to enhance and simplify the entire shipping experience and GO and establish BDP as a future generation freight solution company.
As a Global Freight Forwarding Co what is BDP’s business strategy in this global pandemic situation? What are views on paperless bill of lading and how do you think it will help businesses scale up and will BDP adopt the e-bill service for its customers?
BDP is not limiting itself as a logistics provider, we are a solutions provider to a customer having supply chain processes being part with an end to end visibility and freight forwarding is one of the supply chain activities in the processes. So that in mind BDP India has similarly operated a global system. One system, is our strategy.
We have integrated with various stakeholders in the system of a customer to have an end to end visibility. That’s in terms of domestic logistics as well as international shipping with a combination of Air Freight and Ocean Freight. BDP understands the new way of doing business in this changing environment and we are focused on giving our customers a self- service capability in a way that they can transact electronically and do the data transmission digitally.
BDP is basically integrating with our customers to manage the show. As soon as the orders are ready we are then in a position to take and dispatch all planning components then digitally book the shipment with carriers – and all of this can be done with a digital interface in the system.
We are making it a complete digital experience for our customers. As we are already operating on cloud- based platforms we can function remotely and we have already adopted the functionality of working from home with this new changing situation due to Covid-19
The blockchain adoption process has already started in the US and soon we can see the implementation happening in India as well. That will add value to our entire digital ecosystem.
As BDP is a key player in the chemical industry, with the increasing incidence of the container ships caused by chemical cargoes do you think Freight Forwarders need to change the DG Cargo handling strategy?
BDP has a strong base of global customers and we have a specialization in handling chemical shipments. The chemical handling needs high levels of compliance and DG handling which is why we also have a DGR training process for our employees for chemical processing.
Dangerous Good handling is very critical and we are making sure that the cargo handling is done with a deep level of knowledge, expertise and compliance ethics. Chemical shippers should be aware and made aware of the changing international trade compliances and rules to reduce the number of incidence at sea.
How is the company managing the operations of the business considering the lockdown in India?
BDP fundamentally believes that our people are our asset. With our process, technology and business model. Throughout the entire process of business continuity planning, we knew our number one priority remains the safety and well-being of our teams. We established our BCP with this in mind, and once adopted in February and we were also able to have an interface of stakeholders related to customs, ports and carriers.
We managed to prepare our workforce to keep them mentally prepared with the reality of the situation and also, we made necessary arrangements to work in line with the government guidelines to keep the operations running smoothly. We made PPE kits available for the field operations at a no compromise on safety rule and social distancing guidelines.
As a global player in logistics did the company experience any sort of blocks in the movement of goods globally ?
Yes, I would put this in Indian context as my area of responsibility, we have experienced the disruption of COVID-19 19 at the initial stage of the pandemic say April and May as the country was under full lock down leaving apart the essential services and industries (of course, logistics remained as an essential service) . However, as the ease in lock down began and more industry started operating in June could see the momentum shaping up.
The labour which eluded the workplace and industry belt started coming back as well as warehouses, CFS and port were fully operations we could see the shipments moving since June. However, the consumption impact is still persistent in the market and many factories are still holding inventories since the retail market, shopping mall etc still not fully operational and until consumption pick up, we could see this trend to continue. We have seen slowly the manufacturing companies starting the production and export shipments which were struck earlier now being shipped out.
Further we also seeing many manufacturing company gradually ramping up the production in India as an alternate to China for many of the products however it all depends up on India’s capability to quickly adopt and make ourselves to be competent and competitive for the global markets in terms of consistent supply.
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