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  /  Latest News   /  How Digital Transformation Can Reduce Freight Operational Costs
Digital transformation

How Digital Transformation Can Reduce Freight Operational Costs

Digital transformation has left no stones unturned and freight is no exception. With the pandemic abating and business landscape returning to normal, investing in the technologies would be the right way to accelerate productivity and sales. The upcoming years might see a huge spike in the digital adoption rate of companies and you’d miss out if you didn’t launch on to the opportunity now.

Especially, the freight industry is yet to get started with digital transformation and this could only mean disaster in the upcoming years. With every industry investing in digital solutions and services, freight industry should be open to advanced digital initiatives to take their business and customer experience to the next level.

In this post, I will walk you through how digitalization could impact freight industry constructively and what role it plays in cutting down freight costs.

Before getting started, it becomes inevitable to understand what’s driving up freight costs.

Let’s get started with this.

The increasing costs associated with supply chains and freight logistics has always been a challenge to companies. Specially, the regional players are the one who would be highly impacted by this growing operational (including labor and fleet maintenance) costs and this impacts their bottom-line significantly. The growing costs will not only impact their growth but also will keep them out of the competition.

Some of the challenges the freight logistics industry faces are

  • Customer-specific billing and shipping rates
  • Fleet maintenance and repair costs
  • Dispatch and logistics costs
  • Mileage and haulage calculations
  • Load management


Lack of real-time data and analyzing the data garnered from different processes has contributed to exorbitant spending for these companies. As the process produces a lot of data, performing the processes manually leads only to poor decision making which only hurts the freight players further.

The above stated challenges can be simplified by investing in advanced digital transformation solutions like Internet of Things, Robotic Process Automation, AI & Machine Learning, Mobile Applications, Cloud computing.

Yes, digitalization could be the best way out to deal with the pressing challenges, the automation part would simplify the data capture part and analytics will help you with powerful and accurate decision making. With digitalization, your freight company could really skyrocket the growth while meeting the customers’ demands without any hassle.

Let’s see how these technologies help in improving your freight operations.


Internet of Things

Acquiring real-time data about fleet movements, data load and unload gets simple by digitizing these processes with IoT. A huge advantage of IoT is it can help you garner real-time instantly and this helps in saving the much needed time for staff and management. Also, IoT can do the role 24/7 and you don’t have to worry about your employee’s health. Not just that, IoT is widely used by freight players to ensure employee safety as IoT devices can alert staff about varying temperature or atmosphere changes during transportation. So, partner with an IoT app development companyto make your freight operations hassle-free.


AI & Machine Learning

The ultimate idea of having AI fleet management is to reduce human errors and improve transportation processes. With automated navigation and voice commands, the operations can easily improve and so the overall customer experience.

Generally the cost associated with vehicle maintenance and repairs is half the expense cost and if it is not controlled then there are chances your company won’t provide best-in-class customer experience. Faulty and inefficient vehicles could only hurt your fleet operations and this leads to business debacles. With an AI-based fleet management analytics system, you could easily monitor the faulty vehicles and improve their efficiency to deliver a relentless customer experience. In addition, AI fleet management reduces the cost by 10-40% according to a McKinsey study.


Robotic Process Automation

When it comes to freight operations and management, saving time and reducing errors is highly critical for improving bottom-line. RPA makes the processes like information transfers and load matching simple and hassle-free and this allows the freight operators to improve operational efficiency and production. RPA also comes in handy for route optimization, freight accounting, and freight claim management. Besides, RPA is a wonderful addition to manage invoices as well.


Mobile Applications

Empowering your freight staff with mobile applications will improve their productivity by leaps and bounds. As they can consume data from anywhere and anytime, they can easily share the data garnered to their subordinates or management on-the-go. This helps in saving the time while transferring the much needed data to the higher officials to make quick and better decisions. Mobile applications have simplified the complex data collection and transfer process of freight operators. Why waiting? Engage with a reliable mobile application development company today.


Cloud Computing

Last but not the least – Cloud adoption rate across different industry verticals is skyrocketing and freight industry is no exception. With a huge volume of data captured from different data points, it is critical to store the data and process for analysis and decision making. Without Cloud computing, performing these operations would be trivial for freight operators and management. Storing the data in Cloud has simplified the woes of freight operators as they can retrieve data any time they want as these services are mostly managed by Cloud service providers. With 100% uptime and data backup, Cloud computing is one of the best ways to improve freight operations.


Final thoughts

From the above discussion, it is evident that digital transformation solutions have the ability to transform the freight operations significantly and can play a great role in cutting down the operational cost significantly.