Arham is the Founder and Chief Trucking Officer of Trucknetic. He has been a serial entrepreneur, integrating technology in the conventional worlds of logistics, commerce and energy. He strongly believes that India is an amazing story which hasn’t been written yet.Arham is a mechanical engineer turned social entrepreneur turned investment banker. He was the Managing Director of Apeejay Overseas Limited.He has been selected for prestigious fellowships such as Indo-German YLF, Indo-Swiss FLF, IDEX Global, World Merit, ALS (University of Chicago). He has done Entrepreneurship – Leading change through innovation courses from Stanford University. He has been awarded Entrepreneur of the Year Award by IAF in 2020.
In this fast-growing world, customer expectations are increasing rapidly. Both individuals and businesses expect to get goods faster, more flexibly, and – in the case of customers – at low or no delivery cost.
The growth in the retail industry has forced the trucking industry to alter its playbooks as customers desire more shopping and faster shipping options.
As consumers increasingly expect same-day delivery of goods delivered to their homes, a massive surge in the retail segment has disrupted the global supply chain and transformed industrial transportation networks. To meet demand, companies are looking for a faster and more efficient way to ship goods to customers.
Changes in trucking industry
Customer expectations are increasing greatly. The rise of retailers promising real quick shipment deliveries has impacted how the trucking industry operates.
The logistics sector is facing an era of unprecedented change as digitization takes hold and customer expectations evolve. The modern technologies are enabling greater efficiency and more collaborative operating models; they’re also reshaping the marketplace in ways that are just beginning to become apparent. New entrants, whether they be startups or the industry’s consumers and suppliers, are also shaking up the industry.
It is evident that the trucking industry in India is attracting new entrants operating on truck aggregation and marketplace models. The new age technologies like AI, ML are helping them create differentiation with better efficiency and management capabilities. At the other end of the spectrum, things are also likely to get better for truck drivers/fleet owners.
How technology is helping the trucking industry in accelerating deliveries?
The trucking industry is using GPS systems and Artificial intelligence (AI) to track the location of the trucks, they can now set up geofences to enable alerts when a truck is nearing its destination, or in danger, optimize routes using real-time traffic data, improve vehicle utilization, and automatically track driver hours and fuel tax information.
User-generated inputs via smartphones are sent to the drivers/fleet owners which helps them to know the route around construction or congested areas so that they can avoid these routes and take an alternative route to deliver the goods faster.
Machine Learning (ML) is also helping logistics companies to get minute-by-minute details of the trucks. So that an immediate action could be taken at the time of any mishappening. Every driver has an application that automatically clocks them in when they get into a truck and keeps track of their hours, keeping track of when they reach the warehouse or the changing hub.
Some firms have started using this technology for fuel optimization, operational planning & allocation based on geospatial data, dynamic route management, and control. In situations like human errors, traffic, or accidents, artificial intelligence (AI) predicts decisions based on data analysis and helps to avoid accidents and maintain their safety.
How important is trucking in the retail industry?
The trucking industry plays a crucial role in e-commerce; while most parts of the transactions happen electronically, physical products need to be shipped to customers using conventional transportation means.
It is a congregation of various processes such as inventory management, warehousing, packaging, labeling, billing, shipping, payment collection, return, and exchange. All these put together turn into an exigent task, that requires a full-proof strategy to be accomplished.
The trucking industry also requires a thorough knowledge of territories, roads and road conditions, regulations regarding the movement of goods, and transport laws. The prime purpose of creating a tech-based logistics unit is to deliver parcels much faster, safer, and more accurately.
How do trucking apps make money?
To monetize the trucking application, they can charge registration fees from truck owners or truck drivers, retailers, movers and packers agencies, etc. They can also charge them for each ride they book.
How do trucking apps work?
Trucking applications are a platform that connects truck owners and truck drivers with retailers, mover & packers, courier agencies, etc. The companies can book trucks along with “from and to” location details as well as the date and time for transportation. Truck owners/drivers can confirm or reject the fleet. Moreover, the companies that want to consume the truck services can pay online to the owners and drivers through the app.
Is digitalization the future of the trucking industry in India?
Online freight penetration is expected to rise in the future due to the rise in global internet penetration, better services being provided to both shippers & carriers, enhanced efficiency & better utilization of trucks, and the ecosystem approach being followed by digital freight brokers. With homegrown startups, global companies have started to expand their operations into the market, they will continue to provide competition to domestic startups. It is also expected that long-haul movements will continue to dominate the market due to the rise in the distribution needs across the country by major industries. Meanwhile, the ability of both traditional trucking and trucking-tech firms to scale and operate profitably will be determined in part by the quality of road infrastructure and legislation surrounding it.
Conclusion
The intervention of technology has significantly impacted the logistics industry. From checking the weather to checking into a lodge for a night halt, from automatically paying tolls to using e-wallets/cards, truck owners and drivers can manage themselves well on the road. Maximum efforts are being put in to ensure that the industry and people associated get acknowledged for their work. As new-age technology advances, it will be interesting to see how the trucking sector modifies further and extends its benefits to the industry.