Transport industry on brink of transformation

August 26, 2024

The rail freight sector is facing a crisis of operational efficiency that is harming the country’s economy. As a result, road freight has become the backbone of the logistics sector, responsible for transporting goods. According to Erik Bergvall, managing director of Scania Southern Africa, this increased pressure calls for road fleet operators to adapt and implement technological innovations to boost efficiency.

An increased demand for road transport, largely driven by South Africa’s rail service challenges, has left many local supply chains heavily reliant on road fleet operators. This increased demand has led to growing pains as the industry adjusts. “The factors that will determine the leading transport operators in the near future are very different to those that have traditionally been accepted as benchmarks for success,” says Bergvall.

Historically, transport businesses have been considered easy to replicate. Transport operators had access to the same trucks, trailers, and routes. Now, the transport industry is on the brink of a significant transformation driven by technological advancements, sustainability measures, and evolving consumer demands. The operators who lead this shift will gain a competitive advantage that slow adopters will find difficult to match.

Simply adding more trucks to a fleet is no longer enough; transport operators need to increase efficiencies too. “Leading transport operators aren’t born,” says Bergvall, “they are made.” The adoption of innovative capabilities is allowing progressive operators to move faster than their competitors, introduce differentiated services, and adopt new systems. Increasingly, the ability to collect, understand, and apply data intelligence from vehicles and other assets will mean the difference between business as usual and operational transformation.

Technology is playing a pivotal role in supporting transport companies to adapt and thrive. The potential for fleets to harness intelligent insights from diverse data sources is revolutionising fleet management. Real-time tracking, data analytics, and predictive modelling are enabling transport operators to respond efficiently to disruptions while staying ahead of the curve.

Data sourced from sensors and cameras is enabling significant cost efficiencies. Fuel saving improvements can be made by tracking factors such as vehicle idling, route planning, and driving styles. Data-led predictive maintenance facilitates cost savings by identifying issues before they cause downtime. Long-term data tracking can measure these improvements, so operators can accelerate their efforts – and transport operators who win at cost efficiencies have it made.

Data is also playing a significant role in helping transport operators to reach their sustainability goals. Sustainability is no longer a fringe concern; it is a driving force, and to reduce the environmental impacts of transport operations, real-time data insights are key. Data can support operators to decide how and where to start their transition to sustainable vehicle solutions, using metrics such as lifetime usage and average daily utilisation rates. Sustainable vehicles are designed to maximise fuel economy and total cost of ownership, while reducing harmful emissions. “This means that these vehicles have a significant role to play in assisting transport companies to optimise efficiencies that will deliver a competitive advantage,” Bergvall notes.