Automation of transport and logistics companies

2019: PwC Study

PwC^[1]conclude that the main influence will be on the transportlogistic industry - five key factors. Among them: digitalization; changes in the international environment; to trade changes in the main processes in connection with the implementation of the new one; software changing domestic market dynamics; changes in the main processes due to the introduction of new technology.

Summary table of factors, main trends and time to market

At the same time, each of the transformation factors of the transport and logistics industry will be accompanied by the development of new solutions. In this diagram, they are presented together with the implementation and maturity assessment:

Digitalization

Digitalization will not just be, but is already the factor that has the strongest impact on transport and logistics. New technologies translate familiar production, administrative and commercial processes into a digital environment, which allows you to create new business models. The level of adaptation of companies to new solutions, their business opportunities and the impact on consumers is demonstrated in this research diagram PwC:

According to a survey of heads of transport and logistics companies, 54% of them expect an increase in revenue due to digitalization. The main drivers of the process, expectations of market players, problems and options for overcoming them are shown here:

Developments in international trade

In the medium term, according to the authors of the study, the main impact on transport and logistics will be the growth of rail traffic from China to the EU countries. This determines the emergence of new investment projects and the development of new routes. Of course, those who carry commercial vehicles will have to adapt to these changes:

The incentive for transport companies should be investments in the project "One Belt - One Way." It is assumed that it will lead to the modernization of communication routes, lower transportation costs and the development of new types of services:

Changes in major processes due to implementation of new software

The development of basic technologies and software solutions will increasingly influence the transport and logistics industry, providing the business with new advantages. In different time prospects, the leading will be: intelligent transport systems; Business Process Robotization (RPA) preventive maintenance, monitoring and control by drones; blockchain solutions; artificial intelligence-based solutions.

According to PwC, the adaptation of transport and logistics to changes in the main business processes in connection with the introduction of new software looks like this:

The introduction of advanced technologies and programs will give companies the opportunity to reduce costs, increase the level of customer service and, in general, better understand their market. The development prospects and impact of each technology can be seen in these slides:

ERP and CRM Systems

The problem of increasing the efficiency of transport enterprises can and should be solved by optimizing the main cost items - such as fuel and fuel costs, spare parts, scheduled and unscheduled repairs, insurance, etc. Modern technologies offer many tools that, one way or another, contribute to the improvement of individual performance indicators. However, without a unified enterprise management system, the point application of individual IT tools for the fleet of vehicles - for example, GPS monitoring systems, fuel control, etc. - will not have a comprehensive effect on improving the performance of the entire company.

In order to get up-to-date information about the company's activities, coordinate, monitor and systematically reduce costs, a centralized management and operational decision-making tool is needed. Such a tool is ERP (Enterprise Resource Planning) class systems, which cover the key business processes of the organization and allow you to manage all business components in a single information field. An integral process of any transport company is the process of interaction with customers. And an integral part of automation in the overall enterprise infrastructure is the CRM system, which allows you to automate the planning and management processes (for example, flights) and the interaction of various departments in the sale of services, in order to ultimately increase the level of customer service.

The main value of ERP systems lies in their ability to "link" business components into a single whole by creating a transparent information space. It generates all the necessary management information for the management and employees of the company: financial data on the status of accounts payable and receivable, cash flow, current income and expenses, the number and status of orders, the location of goods and vehicles, travel documentation and analytical indicators obtained as a result of its processing. Often, ERP systems of transport and logistics enterprises are integrated with specialized CRM modules (Customer Relationship Management). However, in terms of functionality, such modules are inferior to full-fledged CRM systems. Therefore, for those companies that want to automate all customer relationship blocks, it makes sense to think about a fully functional independent CRM system that can easily be integrated with an already selected ERP. The integration of several key IT solutions can create a comprehensive logistics system that addresses complex challenges.

When choosing ERP and CRM systems, it is also worth considering its so-called "integration capabilities" - the ability of the system to work and exchange data with third-party applications. For example, when integrated with GPS monitoring systems, the ERP system can transmit planned data from the track list; the actual route is transmitted in the reverse direction. Integration with the SMS center will allow you to send alerts to employees about the readiness of the flight or the need to transfer passengers and crew, and integration with the company's website will help you find out where customers or their agents can leave a request for a flight, transfer or catering.

The most obvious results of the implementation of the information system are the reduction of material costs. Fuel consumption reduction is achieved due to timely planning and monitoring. Its savings can reach significant values ​ ​ - about 20-25%. And planning for the purchase of spare parts for a specific need can reduce inventory and storage costs.

Assessing the economic effect of creating a complex solution as a single centralized management and decision-making tool is much more difficult, because it depends on many specific characteristics and indicators of a particular enterprise. However, ERP and CRM will allow the company to raise the management process to a qualitatively higher level and make informed decisions every day that contribute to business development.

Read also

• TMS - Transportation Management System - Transport Management, CTMS
• Logistics Information System (classifications and methods)
• Review: IT in Trade and Logistics
• Vehicle Safety and Control Systems
• Satellite communications and navigation
• Transport Industry Products, Projects and Integrators
• Automation of document flow in freight transportation

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