Logistics Experts See Improvement in Transportation Processes

Transporeon and Adrian Gonzalez, founder of Talking Logistics, have published the Transportation Pulse Report 2022. In light of supply shortages and delays during the Corona crisis, the study identifies ways to restore trust in supply chains. The data is based on insights from a quantitative survey conducted in October 2021 among 280 shippers, carriers, and logistics service providers, as well as expert interviews.

(Neu-Ulm) Compared to last year, a growing number of the 280 surveyed logistics companies see “very large” potential for improvement in the design and management of transportation processes (25% compared to 18% in 2020). An additional 48% of respondents see “large” potential for improvement (2020: 47%).

Specifically, more than two-thirds of respondents indicated that they see the greatest potential for improvement in the physically present part of the supply chain rather than in the digital planning and execution processes. “It is obvious,” comments Dr. Thomas Lieb, Chairman of the Supervisory Board of Hellmann Worldwide Logistics, former CEO of DB Schenker, and member of the advisory board of Transporeon, “that the physical supply chain currently poses the greatest problem. Therefore, it is crucial to build trustworthy and reliable relationships with partners in the supply chain, have real-time transparency, and take care of one’s employees.”

The survey data also reflects a lack of trust in the supply chain: More than half of the respondents agreed with the statement that “one cannot be too careful when dealing with people within the supply chain.” Additionally, 58% of respondents indicated that a lack of transparency and data exchange between trading partners in the digital supply chain is a problem. Furthermore, nearly half of the respondents complained about a lack of real-time data during transportation.

Increased Exchange of Data and Information

Hermann Ude, former CEO of DHL Global Forwarding and board member of Deutsche Post, now Chairman of the Advisory Board of Transporeon, emphasizes: “The response is an increased exchange of data and information as well as collaborative optimization. All these solutions that are now available, such as Real Time Freight Visibility and the Trust Center from Transporeon, are valuable because they provide transparency and build more trust. When all parties can access the same data, collaborative optimization is possible, which was not the case in the past.”

The survey shows that shippers and carriers share this view. For the study participants, “more efficient coordination of demand and capacity” ranks highest among several options. In second and third place are “improved visibility of demand, prices, and capacities in real time” and the “elimination of manual and paper-based processes.” The reduction of greenhouse gas emissions is also rated higher in the current report than in 2020.

Integration of Logistics and Technology

The study also illustrates how the integration of logistics and technology has progressed over the past year. Although standalone software solutions are still used, the networking of players on network platforms is becoming increasingly important. Thus, 77% of respondents indicated that the “size and scope of their logistics network” is the most important criterion for them when selecting a transport management software or logistics service provider.

Logistics expert Adrian Gonzalez summarizes the findings: “What we know is that there is still very large potential for improvement in transportation and that the logistics industry needs to become more data-driven to achieve this. Furthermore, data transparency among all parties must increase.”

Download the complete Pulse Report here

Photo: © Transporeon