This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
Visibility technology definitely holds the most promise in logistics right now, and we’re finally starting to see companies adopt various types, whether it be willingly or due to industry pressures.
The ELD mandate from USDOT has been a strong catalyst in bringing the trucking industry on board. It has enabled carriers of all sizes to be able to connect to new systems, primarily via APIs, that they didn’t have access to before. With this, both customers and logisticians can manage expectations, reduce delays, and hold the proper groups accountable in outlier scenarios. These technologies include everything from GPS at the base level to internet-connected sensors, and they are all brought together via APIs and now even blockchain technology to package everything into a trustworthy data set.
Until recently, carriers had been reluctant to adopt certain visibility tech. This was due to the fear of “my customers will see my mistakes,” along with fear of rates and exposing other competitive information. For instance, rail carriers still don’t generally have public APIs or well-written documentation for them if they do have private ones. In trucking, it took a federal mandate of ELDs to push adoption. I expect we may see the same happen in other modes of transport as well, as we are witnessing IMO 2020 forcing change in the ocean space. Some carriers will choose to adopt these new technologies, and they will reap the benefits, but those that are reluctant will find their hand forced by either competitive or regulatory pressures.