2015 should be a stronger year for transportation and logistics, particularly in the United States as the economy continues to gain momentum. The restructuring of global supply chains and the continuing trend of logistics outsourcing will drive continued growth in the logistics service provider industry. We see two important changes taking hold from a technology perspective in the transportation and logistics sector, particularly for logistics service providers.
The first will be in the area of social relationship management — using social platforms such as Facebook, Twitter and LinkedIn to engage with customers, partners, employees and prospective employees. Use of social platforms in transportation and logistics companies will grow from the current state of essentially having a basic presence on social networks, to using social platforms to recruit prospective employees, monitoring customer feedback, and facilitating collaboration internally across the enterprise. Social networks could serve as a key enabler for driver recruiting, especially in the U.S., where companies are wrestling with a driver shortage.
The second key change will be a stronger focus on what is now called the Internet of Things or IOT. Transportation and logistics companies will focus on equipping assets and personnel with “smart” devices that will enable a range of process improvements and automation including efficient deployment of assets based on location data, proactive maintenance of assets based on asset condition data, and enhanced operator safety based on vehicle control data. For example, real-time data feeds from trucks on speed, fuel consumption and braking could be used to alert drivers so they maintain optimal speeds, enhancing safety and reducing fuel consumption.
The key challenge for enterprises is putting in place an effective infrastructure to acquire, organize and analyze this information. Enterprises that do will be able to provide executives and operations personnel with insights that enable better operational and strategic decisions.
Sundar Swaminathan, Senior Director, Industry Strategy and Marketing, Industries Business Unit, Travel and Transportation, Oracle