Digitizing with a platform: the way to lead the way

The transport and logistics sector is well on its way to recovery after all the lockdowns¹ but still faces low margins and competitive pressure. Digitization is the way to get ahead, but companies sometimes take a wait-and-see attitude for fear of investing in the wrong technology. Yet there is no doubt that EDI with a data integration platform (as a service) delivers the benefits organizations expect from data-driven working: more efficiency and better insights from data.

According to PricewaterhouseCoopers², organizations in transport and logistics are regularly faced with the choice of which innovations and transformation will ensure that they remain competitive in the coming years.

They have to do with four “disruptive” factors:

1. Customers who expect faster deliveries at a lower cost;
2. Technological developments such as big data analytics;
3. New entrants with radically different business models and without outdated 'assets';
4. Collaboration and sharing of volumes and facilities between parties in the chain.

An example of a party with new assets is Amazon, which uses drones to deliver packages within half an hour³. It seems only a matter of time before we also head in that direction in the traffic jam-packed Netherlands.

Electronic shipping documents are coming

In terms of cooperation, a trial in the Benelux is an advance on a paperless future, with the electronic shipping document. In 2025, digital provision of information in freight transport will become a legal obligation⁴. Furthermore, more and more online platforms such as iShare⁵ are taking off. Transport companies can safely exchange information (data) with each other there, for example to increase the load factor. Those who have spare capacity can find an extra transport order. This saves costs and emissions⁶.

Digitization also helps to increase the service, such as keeping customers informed about the status of a transport with track and trace.

Stumbling blocks: complex IT and connections

Research by Transport en Logistiek Nederland shows that the benefits of digitization are usually recognised, but that most people nevertheless adopt a wait-and-see attitude⁷. Costs are not the biggest stumbling block, but 'complexity of IT implementations' and 'connection with existing IT systems'.

As a result, organizations continue to work with telephone and e-mail and miss opportunities. The easy way to take steps in the digitization process is to purchase a data integration platform as a service. All work related to implementation and management is then taken off your hands. An outcome, because the research also indicates that few entrepreneurs are interested in developing and managing a system themselves.

Platform paves the way

A platform brings together data from different sources and makes it suitable for (predictive) analyses. It also provides the connectivity needed to allow applications to talk to each other (without human intervention). This makes electronic data interchange(EDI) possible. Important advantages of this are:

• More automation (no more cutting and pasting when transferring information from emails, which saves time and produces fewer errors. Availability also increases because exchange takes place 24/7).
• Better planning (information becomes available earlier (real-time) and enables better coordination with customers and suppliers. Digital orders can also trigger automated actions. Think of robots in a warehouse that prepare a pallet).
• Smarter inventory management (e.g. through artificial intelligence that predicts peaks and troughs in demand and thus prevents the waste of perishables).

This way of working accelerates digitization and makes it easy to quickly establish connections with partners. This opens the way to innovation, cost savings, growth and greater customer satisfaction. This way of working accelerates digitization and makes it easy to quickly establish connections with partners. This opens the way to innovation, cost savings, growth and greater customer satisfaction.

Want to know more? Then read our e-book 'The benefits of data-driven working in transport and logistics: how an integration platform as a service makes digitization easy' or look at our Boomi page. Or contact us today!

Bronnen:

1. https://www.rabobank.nl/kennis/d011118204-transportsector-komt-in-2021-sterker-en-schoner-uit-de-crisis
2. https://www.pwc.nl/nl/marktsectoren/transport-en-logistiek/innovatie-en-groei.html
3. https://tweakers.net/nieuws/171616/amazon-krijgt-in-vs-toestemming-om-pakketten-met-drones-af-te-leveren.html
4. https://www.nt.nl/wegvervoer/2021/08/25/proef-met-e-vrachtbrieven-benelux-richtinggevend-voor-europa
5. https://www.ecsinternational.eu/producten/ishare
6. https://www.waltherploosvanamstel.nl/geen-vollere-vrachtwagens-zonder-digitalisering/
7. https://www.tln.nl/app/uploads/2019/11/Rapport-data-en-digitalisering.pdf