Digitisation trends in the freight industry

August 26, 2024

Digitisation in the freight industry can result in enhanced efficiencies and a reduction in costs, as noted recently at the Transport Forum by RENKO BERGH, co-founder of CtrlFleet. This is a summary of his presentation.

I would like to provide an overview of the transport sector, covering digital integration and the migration of physical operations. But, before unpacking the digital trends, let’s review some context of the transport industry’s current status. Our focus will be on the essential nature of the transport sector, its challenges, and its ongoing changes.

Transport sector is essential

Transportation is a crucial part of the supply chain, managing the efficient flow and storage of goods and information from origin to consumption to meet customer needs. In our fast-paced world, transportation ensures the smooth delivery of goods, playing a pivotal role in the supply chain industry.

Despite commerce between African nations only accounting for 12% of regional economic activity, there is immense potential for growth – and the logistics industry will play a vital role. Investment opportunities are rising, with the sector’s GDP contribution expected to increase by 3.7% by 2024. Globalisation and technology have opened new opportunities, improving supply chains and competitiveness in Africa. The logistics sector is crucial for the development of real estate in sub-Saharan Africa, driven by the rising need for retail warehouses and the production of consumer goods.

Changes coming to a challenging sector

By 2030, the global population will surpass eight billion, with 95% of this growth in developing and emerging markets. This shift will reshape the global economy and increase production, presenting challenges for the transport and logistics industry.

Global trade is expected to rise significantly, placing pressure on the industry to keep goods flowing. Already, driver shortages are a global issue, particularly in developing countries – where transportation companies will need to invest in training and skills development.

Today, the sector is at a critical juncture, driven by technological advancements and sustainability efforts. Automation and digital innovations are making operations more intelligent and more eco-friendly. Urbanisation in Africa is rapidly increasing, with significant implications for logistics. The African Continental Free Trade Area (AfCFTA), established in 2018, is set to remove trade barriers and boost intra-regional trade, benefiting the logistics sector immensely.

Impact of transport management software

Automation and integration are vital in enhancing the efficiency of transport management software. Examples include automated route planning, real-time monitoring, load balancing, and integration with warehouse management and customer relationship management systems. These advancements streamline operations, improve decision-making, and optimise resources.

The utilisation of driver app solutions offered with transport software solutions can result in a variety of benefits, such as monitoring vehicle locations, eliminating paperwork, enhancing fleet management, and reducing delivery time and costs. It can additionally enable 24/7 cargo tracking, optimise dispatches and routes, facilitate online booking, improve warehouse management, and provide detailed driver information.

In conclusion, the transport sector is undergoing significant changes, driven by the need for efficiency, transparency, and integration. Transport management systems and advanced technology are leading this transformation, enabling growth and success in modern logistics. Let us continue to embrace innovation and drive the future of logistics together!