In the transportation and logistics industry, inadequate visibility in asset tracking has long plagued businesses. The traditional methods of monitoring transportation assets often fall short of delivering real-time insights, leading to inefficiencies, increased operational costs, and reduced customer satisfaction.
The only way to guarantee your assets safe and on-time delivery is through asset tracking. Without it, it is next to impossible for manufacturers and logistics companies to ensure the safety of their consignments.
In the transportation industry, the lack of real-time visibility in asset tracking poses a multifaceted challenge. Did you know that 27% of assets lost by organizations are lost during transportation?!
Manual tracking systems and outdated technologies provide limited insights into the movement, condition, and utilization of transportation assets which hampers operational efficiency and leaves organizations vulnerable to theft, damage, and regulatory non-compliance. This also leads to delayed decision-making, compromised security, and a diminished ability to respond quickly to disruptions. Ultimately, this results in reduced customer satisfaction, which is the last thing any business wants!
The Depth of the Challenge
Supply chain visibility is among the top strategic priorities of companies worldwide. Transportation network issues were one of the leading causes of supply chain disruptions in 2022. A meagre 6% of companies report full visibility on their supply chain while 69% of companies do not have total visibility. Additionally, 43% of small businesses don’t track their inventory at all!
In an industry where timely and accurate information is paramount, the inability to track assets in real-time results in increased lead times, higher carrying costs, and a higher probability of stockouts or excess inventory. Delays in shipment delivery due to lack of transportation visibility can cause a domino effect throughout the supply chain network, leading to inflated prices and other complications.
A recent survey found that supply chain outages cost companies an astonishing $184 million annually! The impact on operational efficiency and cost-effectiveness is profound, making it imperative for organizations to address this issue.
Leveraging Supply Chain AI Techniques
Artificial Intelligence is here to save the day yet again! Advanced analytics, machine learning, and IoT (Internet of Things) technologies have taken transportation asset tracking to the next level. These AI-powered solutions enable real-time monitoring of transportation assets, providing insights into their location, condition, and performance. A 2021 report indicated that 40.02% of supply chain executives want to invest in real-time supply chain visibility.
Machine Learning algorithms analyze historical data and patterns, allowing organizations to predict potential issues and optimize routes for improved efficiency. Real-time tracking systems that use sensors or other tracking devices allow shipments to be monitored every step of the way. It also enables customers to see exactly where their package is and when it’ll reach them. It’s a win-win for logistics companies and customers alike as businesses can optimize routes and reduce fuel consumption while also building trust and increasing satisfaction in their customers.
Expected Outcomes and Business Impact
AI’s integration into transportation asset tracking yields countless benefits, positively impacting key organizational parameters. Enhanced visibility in transportation asset tracking directly influences customer experience, reduces the likelihood of errors, delays, and damaged goods, and allows organizations to be at the top of their vehicles’ location, condition, fleet maintenance status, and performance.
Here is how incorporating transportation visibility platforms can enhance overall business.
- Real-time Updates: “Out of sight, out of mind” cannot be your mantra when it comes to your consignment. By enabling live tracking of assets with accurate location updates and total real-time transportation visibility during all stages of the shipping process, real-time updates enhance asset security.
- Optimized Operations: AdvancedIoT technologies allow businesses to manage their assets and optimize their operations to their fullest potential. For instance, real-time transportation platforms can also send notifications for when assets might need routine maintenance and upkeep, thereby reducing the chance of unexpected repair costs or damage.
- Reduced Risk: Using an RTTVP takes out the possibility of human error as information is directly sent from GPS devices to a cloud-based platform that can interpret the data for its users. Compared to manual recording and data interpretation, AI ensures more accuracy and reliability.
- Theft Prevention: In case of theft, the GPS devices installed in an RTTVP can easily aid in the recovery of the asset and save the company a great deal of money. The company will be immediately notified through the AI platform which will then switch into recovery mode to be recovered.
- Enhanced Customer Satisfaction: Being able to track their order every step of the way builds trust in a customer and ensures their loyalty and satisfaction. Guaranteeing on-time and safe consignment delivery is one of the best ways to win over your customers. After all, a happy customer means more business and more profits!
Transportation and logistics activities currently account for 12% of the global GDP. It is estimated that the market for transportation management systems will reach $4.8 billion by 2025. It is expected to have a CAGR of 11.7% from 2021 to 2028, an increase from a market value of $120.70 billion in 2021 to a predicted $261.89 billion in 2028.
Conclusion
AI’s role in enhancing visibility in transportation asset tracking is a game-changer for organizations seeking real-time insights and tangible impacts. By addressing the challenges of inadequate visibility, AI solutions bring about cost reductions, operational efficiency, and improved customer experiences.
Embracing AI in transportation asset tracking is not merely an upgrade; it is a strategic move toward a more resilient, responsive, and customer-centric approach to logistics, where real-time insights translate into real-world impact. For more information, please write to hello@felixsolutions.ai