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THE ADNAVEM BLOG

We share updates about the transport & logistics industry, how the digitisation affects our way of working and what we can expect from the future. 

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Digital transformation slow in logistics compared to other industries

The transport & logistics industry is behind other industries regarding digitalisation and platform thinking. This signals KPMG’s report from last year.

 

The retail trade has the most significant number of organizations with platforms integrated into their business model (50), while the transport and logistics sector have 13 platform organizations, according to KPMG.

By a technical platform is meant a plug-and-play model that several actors (producers and consumers) can connect to, a place where they can interact with each other and create and exchange value.

 

Platform economy impacting industries source: KPMG

Flexibility & control beats traditional way of working

The optimal platform should be able to offer products and services from several producers and players to meet the needs of a broad group of buyers and consumers. Most players in transport & logistics provide limited products and services and thus fail to be objective, making the whole spectrum visible. Most transport buyers today want to buy carrier based on delivery precision, service, and price, and they want the freedom to build relationships with logistics suppliers without intermediaries.

“Today, technology has come so far, and we have access to data that we have not previously had access to. Now it is only for transport buyers to raise their eyes and dare to invest in a platform solution also for logistics. Control increases, transport costs are paid directly to those who do the job, all communication is digital, and the flexibility is great when the transport chain is managed digitally”, explains Andreas Wramsmyr, CEO & founder of Adnavem.

Why all this talk about digital transformation

During 2020, it has become clear that we cannot stop the digital transformation, and we see many digital projectors in the market. Transport buyers demand to have control over their transport and to ensure that they pay according to the market situation.

Changing purchasing behavior will accelerate the development of platforms in transport & logistics. Where traditional players do not deliver, new tech loggers will provide with raw material. The biggest threat to a rapid change and an increase in the number of platforms is the consumers themselves. There are still those who want to act independently and who have invested in models that have been self-evident for decades but no longer measure up.

What changed then?

The freight forwarder organizes transport, mainly between different countries, but also domestically. The freight forwarder designs quote and make a route planning to transport the goods. The freight forwarder must have some knowledge of laws, agreements, transport solutions and be able to make calculations.

Today, there are digital and automated solutions that replace much of the work done by the freight forwarder traditionally. In the future, therefore, the freight forwarder will play a significant role in terms of more complex transport and project loads. In those cases, the freight forwarder is invaluable.

Today, transport buyers can utilize technology & automation:

  • Search and find the best carriers worldwide in just a few seconds

  • Get prices for each part of the transport chain directly online

  • Book on the Incoterm (delivery term) that best suits the business model

  • Get estimates on which routes are the fastest, cheapest & most sustainable for the environment

  • Access to global price index

  • Proactive decision-making throughout the entire transport chain

Linda Gårdlöv
Linda Gårdlöv
Co-founder and CCO at Adnavem

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