Top Three Freight Transportation Industry Trends
The global transportation arena is a vast ecosystem that includes everything related to the major modes of transport- road, rail, marine, and air transport. As the freight transportation industry enters into a new year it seems like it has the potential to be even stronger than the previous year. The top three freight transportation industry trends include:
Rising Spot Market Rates
Spot rates were on the rise for much of 2018 and could continue to do so throughout 2019. This is a trend that is directly proportional to the capacity crunch. Though the rates will stabilize it is expected to rise as the capacity remains tight.
A market with high freight demand and low truck supply is expected to bring in major disruptions to the freight transportation arena. The other major factors that are expected to impact capacity is the rise in government regulations such as the electronic logging devices mandate.
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The new technologies breaking into the transportation industry are expected to pave way for a new era of transportation. A potential disruption in the form of autonomous vehicles will also bring in new opportunities for players in this sector.
The client- a leading transportation industry player in the US. The freight transportation industry player operates a less-than-truckload (LTL) network across South America to provide seamless transportation services in long-haul and short-haul markets.
Project Background and Solution Offered
The hype surrounding big data and prescriptive analytics make it difficult for organizations to sift through massive datasets and marketing noise to make the right business decisions. Hence players in the freight transportation industry need to partner with analytic service providers that have a clear understanding of the analytic tools along with the expertise to develop appropriate prediction models.
A client a leading freight transportation services provider found itself at crossroads when the physical structure of the transportation industry’ supply chain transformed as a result of rapid digitization. The client wanted to leverage Quantzig’s prescriptive analytics solution to understand the analytical approaches and data that are required to support decision-making.
Our prescriptive analytics solutions offered personalized recommendations to help the transportation industry player achieve their business goals. The offered prescriptive analytics solution helped them solve several solve complex decisions with millions of decision variables, constraints, and trade-offs.
Value Delivered to the Client
By combining disparate datasets the freight transportation industry player gained prescriptive insights into data that provided a direction to improve their future capital investments and maximize key business metrics. The solution not only helped them optimize their supply chain operations but also enabled them to enhance operational efficiency. Also, with the help of Quantzig’s prescriptive analytics based models, the freight transportation industry client was able to combine descriptive and predictive data to determine the consequences of different choices of action.
Though prescriptive analytics offered myriad benefits, the most pertinent of them were:
- Minimized operational risks with data-driven decisions
- Optimized processes to maximize profits
- Increased operational efficiency by 15%