Last year, applications on smart phones such as Uber and Lyft managed to completely change the format of taxi services. Similar concepts are growing in popularity and applied for use to increase the efficiency of trucking services. Many companies are engaging in the development and promotion of Smart Trucking app to provide service users with convenience and comfort as regards, for instance, swiftness, trip planning, swift price calculation, evidence of delivery, receipt and payments. Service users can, moreover, access real time information as regards up-to-the-minute location of the delivery trucks. Such applications have been designed to solve unnecessary time-consuming processes such as when truck drivers often spend hours trying to locate freight to be loaded by calling freight delivery agents and checking up on loading schedules.
Technology-based companies engaging in the development of Smart Trucking App are all convinced that it would be able to do away with the agents’ service fee while coming up with an effective solution to various problems. As such, it would be equivalent to the taxi industry that takes on ride sharing with modern apps (such as Hailo and Arro), thereby compelling those agents to adopt the ‘uberization’, unless they want to take the risk of being eliminated from the industry altogether.
The Smart Trucking App is the latest example which has proved that digital innovations can change the nature of business and that the use of this app in transport can reduce service fees, generate extra income and effectively save energy. The majority of trucking companies (more than 90% in the U.S.) are small. The all-in-one app has succeeded in wresting market share between small- and larger-sized companies.
While major transport companies using the app should allow smaller companies to have access to the services provided in keeping with customer needs at the price range within their control, they (major transport operators) should handle transport fees beyond what has been agreed upon, such as the fees charged on holidays which are higher than the normal fees. Aside from the issue relating to supply chain, uberization has promised to provide every stakeholder with better clarity and transparency. The emerging load-matching app is expected to do away with ineffective services while substituting for the current scarcity of truck drivers in the U.S. as well as in Europe and being able to tackle the ever changing demand. For instance, large companies that have their own trucks such as Tyson Foods or Albertans can resort to the use of smart trucks when demand on trucks is high. At the same time, they can also sell their extra trucks or trucks not in use in the absence of customer demand.
Distribution centers run by logistics service providers can always perceive new demands and changes as regards, for example, an increase in load sharing and load exchanges, which enables truck drivers to suitably manage their timetables and routing and also provides smaller operators with a better chance in competing with the major ones.
In the final analysis, the Smart Trucking Apps under development could decrease to only a few or only one that covers all functions including, for example, truck reservations, delivery, freight tracking and payments. If and when the operators together with truck drivers begin to get used to the convenience in using the app, the major operators might consequently have to adjust and change their delivery systems.
At present, conventional transport companies have to resign themselves to technological advancement and be willing to change and streamline their operating systems to make transport and delivery become less complicated. As it happens, companies engaging in the media, taxi or wholesale business have resorted to the use of applications in their operations. Transport companies should follow suit so as to keep abreast of the current situation and be able to remain in the market.
Compiled by BLOG.SCGLogistics
Reference and picture credits: forbes.com