Outlook for Freight Brokers, 3PLs Strong Amid Change
The trucking and transportation industries are experiencing drastic makeovers – slightly behind schedule.
Even in today’s inter-connected age, the $700 billion trucking industry relies largely on old school paper and phoning processes to complete transactions. The Internet of Things is changing that.
IoT is a big Thing
2017 may prove to be the year trucking fully embraces the Internet of Things (IoT). An estimated 7 billion devices are currently connected to the internet worldwide, with that number expected to reach 20 billion by 2020.
Trucking has been slow to jump on the internet-connected bandwagon. The increased use of sensors and mobile phone technology – and the integration of both into supply chain processes – is helping the trucking industry catch up. Big data is exploding onto the logistics scene, lubricating supply chains every step of the way.
A recent study by Frost & Sullivan showed startup ventures are using connectivity to alter virtually everything about the way freight is booked, paid for, and moved. The report indicated industry-wide disruption in five key areas:
- Autonomous or self-driving truck technology
- Video based safety systems
- Smartphone “utility” applications focused on drivers
- Fleet management solutions
- Digital freight brokering
Revenue in those sectors is expected to grow from about $10 billion today to roughly $245 billion by 2025.
Growth for 3PLs, Brokers
The good news for transportation intermediaries is that the digital disruption taking place can, and should be, good for business. The 3PL market is expected to grow at a healthy compound annual growth rate (CAGR) of 5% through 2024. The main reason: technology is expected to deliver a groundswell of efficiency and cost-savings for brokers and 3PLs.
Unsurprisingly, big data is on the minds of many transportation brokers, with 98% of 3PLs saying improved, data-driven decision-making is essential to future supply-chain success.
“Our initial customers have found excellent time savings with the use of real-time tracking and data capture,” says Alex Williams, National Accounts Director for LaneAxis. “Real-time visibility is the future and with an easy to use UI, LaneAxis finally offers an application drivers don’t mind using”
LaneAxis is a desktop and mobile SaaS tool built to drive new efficiencies into the trucking sector. LanAxis gives Shippers, Freight Brokers, and Third Party Logistics Providers (3PLs) real-time freight visibility via GPS, process automation, and digital archival record-keeping.