Tag: Commercial Transportation

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Market Entry Strategy Helped a Transportation and Logistics Providers Devise Strategic Plans to Enter a New Market

One of the most significant and challenging concerns for transportation and logistics providers is the need for greater technological advances and innovations while remaining budget-conscious. Let’s take a look at a couple of challenges that transportation and logistics services providers across the globe face.

Transportation and logistics challenges

Business Process Improvement: The increasing need for new technology has become an enormous challenge for the transportation and logistics services providers to stay on top of new advances in business processes. However, taking advantage of these new opportunities looks appealing but the adoption and onboarding can be quite overwhelming.

Planning Pressures: The demand for transportation and logistics services arises from the continued increase in online shopping behavior and the accompanying expectation for quick delivery. Request ProposalThis requires more sophisticated operations and software, along with more diligence from drivers and more incentives to motivate them.

Business Issues

  • The client: A leading transportation and logistics services provider

An American multinational supply chain management and package delivery company headquartered in Georgia, United States approached Infiniti to conduct a market entry strategy engagement. The client wanted to address issues pertaining to the sales channels and the marketing practices and formulate a go-to-market strategy to scale their business prospects across potential market segments. The company also wanted to refine its existing marketing models, enhance service improvements, and reduce costs.

How Can Market Entry Strategy Help Transportation and Logistics Services Providers?

A robust market entry strategy engagement helps a company assess its strengths and weakness and devise strategic plans to enter a new market space. Firms can also analyze consumer preferences and develop a business model to meet their demands without any hitches. Furthermore, Infiniti’s market entry strategy engagement helps businesses identify the current market scenario in terms of market drivers, competitors, and product positioning strategies.

Summary of our market entry strategy solution

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Client Journey

Infiniti’s market entry strategy experts evaluated the information gathered from a wide array of primary and secondary sources such as industry forums and exclusive company presentations to help the client comprehend the potential challenges while entering a new market. The experts also held extensive interviews and discussions with prominent stakeholders in the transportation and logistics services industry space.

The Solution Benefits and the Business Impact

The market entry strategy solutions offered by Infiniti helped our client – a leading transportation and logistics services provider to enhance service offerings and improve their geographical coverage. The solution also assisted the client to venture into advanced fields including value-added services and financial services. The client was also able to differentiate themselves from their competitors in the market space and meet the level of customer expectations in the new markets.

The Future

With the increase in expenses of transportation and logistics companies on fuel and auto parts, transportation and logistics services providers have started embracing new methods and strategies to improve their efficiency and mobility. For instance, companies in this industry space have started investing in equipping their fleet with smart devices and deploying contemporary technologies that facilitate best-in-class deliveries.


A must-read case study for strategy specialists and decision makers looking to develop an understanding of the transportation and logistics services industry

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Financial risk analysis

Top Fleet Management Challenges Bothering Fleet Managers

Fleet managers play a pivotal role in any transportation company or a logistics company when it comes to selecting and maintaining vehicles and keeping up with delivery and distribution schedule. Fleet management plays an essential role in the transportation industry as fleet managers strive to minimize risks associated with vehicle investment. Fleet management companies are always on the lookout to improve efficiency, productivity and reduce their overall staff and transportation costs. Successful fleet managers usually have years of experience in the field dealing with fleet operations, logistics, contract negotiation, fleet maintenance, and fleet management systems. However, fleet management can sometimes IR_Brochurebe challenging to deal with even after years of experience in the field.

Driver safety and productivity

Apart from fleet managers, drivers are another vital cog in the success of fleet management services. So it is essential to ensure driver safety for effective fleet management. Accidents on the road will not only pose a question of the driver when it comes to safety but might also damage the cargo and the vehicle, causing substantial economic losses. Fleet managers need to diligently use educational programs, regulations, and predictive analytics to ensure safety for their drivers, cargo, and vehicle. With a host of technology available including GPS, telematics, and sensors it becomes essential to educate the drivers on the use of such tools to minimize road accidents. Preventing such accidents deters not only the economic losses but also avoids potential downtime, which can hamper the service levels. Additionally, reducing the risk of accidents also helps keep the insurance premium costs down. It is always a challenge to hire experienced drivers with clean records and then train them to get acquainted with a host of new technologies.

Fuel price fluctuations

The cost of transportation or delivery per mile is one of the important metrics used by fleet management companies to determine the pricing for their services. However, this cost is highly unstable owing to the ever-fluctuating fuel prices. This impacts the final cost of the services provided, and transportation companies will often have to adjust their consumer pricing. It is almost impossible to forecast the fuel prices and, as a result, fleet managers will have a hard time managing budgets. One of the best ways to mitigate this risk is to switch to a more fuel-efficient vehicle. As a result, fuel price volatility will have little effect on the final prices. Also, the transportation industry is assessing the possibility of using electric vehicles on a large scale.

Managing geographically dispersed teams

Large commercial fleet management companies have operations spread across state lines and international borders. Fleet managers have a hard time tracking all operations and also communicating with drivers remotely. Additionally, locating each vehicle in the fleet can be a tiresome task as it may require continuous zooming and scrolling across a map. To combat such issues, the transportation industry is turning to technologies such as advanced mapping and spatial clustering to facilitate fleet monitoring.

Cost containment

A majority of the fleet management companies have already optimized their cost base. There’s hardly any room for further reduction as fleet managers would already have researched competitive alternative and selected the best fleet option. Additionally, reducing cost is a top-down approach and requires a strategic adjustment from top management. Apart from that, fleet managers face a lot of problem in dealing with driver reimbursement, resource sharing, vehicle maintenance, and lifecycle costing. Most of these factors are out of their control, which lead to budgeting and forecasting complications.

For more information on challenges faced by fleet managers in the fleet management sector, transportation industry, and logistics industry:

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Transport and logistics

Companies Laying the Groundwork for Drone Delivery

Last-mile delivery has always been a burning problem for players in the logistics industry. Added to that, rising consumer expectation hasn’t helped the cause. Consumers demand one-day or same-day shipping which can be logistically impossible or economically unviable. Even major logistics companies only offer few items to be shipped within a day. Furthermore, delivering goods via road poses many uncertainties including the unavailability of drivers and uncertain traffic and road conditions. So how can logistics companies effectively tackle such problems? One area such logistics companies are exploring is the viability of drone delivery. Drone delivery can efficiently solve the everlasting last-mile delivery problem. Additionally, the ability to operate autonomously saves companies personnel costs along with fuel costs. Although such companies are currently bound because of regulatory hurdles,IR_Brochure governments are looking at provisional measures to make drone delivery a reality.

Amazon Prime Air

Amazon CEO Jeff Bezos revealed plans for Amazon Prime Air in the year 2013 and completed drone delivery after three years in 2016 by delivering a parcel to Cambridge, England. To implement full-scale delivery, the company plans to use miniature UAVs which will be able to carry loads of less than five pounds and deliver within 30 minutes to locations that are within the 16km radius of an Amazon fulfillment center. The company is planning to roll-out the service on a small-scale depending on country’s regulatory rules. Currently, the most significant challenge facing Amazon Prime Air is its ability to successfully navigate more tricky urban environment to successfully deliver the package. Once they figure out a solution using AI and get regulatory approvals, drone delivery would become a reality.

Domino’s Pizza

Domino’s Pizza is testing the possibility of delivering a pizza by drone. They successfully performed a drone pizza delivery in New Zealand by partnering with drone delivery service startup Flirtey. Such delivery option will allow the food giant to reach more rural customers and improve delivery times in congested environments. Domino’s Group CEO advocated for drone delivery system stating that it doesn’t make economic sense to deliver a two-kilogram order on a two-ton machine. With the advancements in artificial intelligence systems, drone delivery can be the perfect option for delivering food to the consumers quickly and efficiently. Their current drones can deliver pizzas within 10 minutes to any location within a 1.5km radius of a Domino’s Pizza chain.

Ukrainian Postal Service

In 2016, Ukrainian Postal Service teamed up with Flytrex Aviation to begin testing drone delivery service in Ukranian cities. The drone, named Mule, is capable of carrying loads of up to 3kg to a distance of 23km. The drone can travel at a maximum speed of 70km/h, reducing the delivery time to a mere 30 minutes. The logistics company has deployed a unique release mechanism in the drone to avoid parcels being stolen or tampered. The drone uses a battery instead of fuel and saves a lot of cost in terms of maintenance and fleet management.

Mercedes

Mercedes-Benz recently unveiled the Vision Van, which employs two drones capable of delivering packages of up to five pounds within a radius of six miles. The company partnered with drone startup company Matternet to develop the Vision Van. The Vision Van would enable the company to increase its productivity up to 50% in last-mile delivery service. The mini aircraft has already successfully delivered more than 100 packages within Zurich, Switzerland. The company has invested about $597 million in an effort to speed delivery times for online orders.

Workhorse

Workhorse is an American electric mobility solution provider that developed Horsefly, an autonomous drone delivery system. The device is able to carry a 10-pound package for about 30 minutes flying at a speed of up to 50mph. It can deliver packages at a meager cost of $0.01 per mile in electricity costs. The company claims the drone to work even in rain and snow, but wouldn’t handle high winds particularly well. The company is looking for an ingenious solution to overcome US regulatory rules that demand drones to stay within line-of-sight by mating the technology with its electric delivery trucks.

For more information on companies into drone delivery, logistics companies, delivery service:

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IR34

Where’s the Logistics Industry Heading in 2018?

The logistics industry is the backbone of industries such as retail, e-commerce, healthcare, and FMCG. Such sectors are highly reliant on the logistics industry to move their products across the world to maintain customer satisfaction. Increasing consumerism is pushing the logistics industry to deliver superior performance and offer services such as overnight shipping. For instance, UPS operates more than 2000 flights a day to more than 200 countries and territories, which enables them to receive a package late at night and deliver it by 8 AM the following morning. Apart from making strategic changes to achieve efficiencies, the logistics industry has embraced a host of new technologies to help them save costs and reduce wastages. So what are the upcoming top logistics industry trends for the year 2018?Get More Info

Top Logistics Industry Trends

Blockchain

The blockchain technology has made numerous headlines currently due to the exploding popularity of theBlockchain Technology in Logistics cryptocurrency Bitcoin. However, the technology has a wide range of applications because of the security and transparency it offers. The ability to record a chain of transactions that cannot be tampered with is especially useful in the logistics industry where the product goes through a sequence of custody handovers and transactions to reach its final destination. In such a case, it becomes vital to know who is responsible for the goods during each handover, which, in turn, enables package tracking as well as accountability. It is one of the most significant logistics industry trends that can potentially save companies billions of dollar when implemented on a mass-market level.

cosmetics industry

Why You Shouldn’t Ignore Freight Cost Benchmarking

At present, global trade has been increasing at a colossal rate, leading to an increase in the volume of freight shipping. With the increasing volumes of freight shipping, the shipping environment has also drastically changed, leading to unforeseen delays, obstacles, or changes. Shippers are looking for numerous fixes to address this challenge and make their supply chain agile and flexible. Consequently, logistics companies are resorting to freight cost benchmarking to address this problem, which leverages accurate and up-to-date market intelligence information. Freight cost benchmarking process optimizes the supply chain by comparing ocean freight costs against the IR_Brochurepayments made by the competition. It thereby assists in the process of finding the best rates in the current market.

Overall Analysis

Suppliers and shippers can resort to freight cost benchmarking to analyze spot rates against long-term contracted rates by measuring freight averages over time. It also allows companies to analyze and benchmark data related to the mode of transport, shipping destinations, shipment weight and mileage, cost, distance, and cost per mile. Such an analysis provides the company with an understanding of the competitive shipping rates they get from the carriers and benchmark it against actual freight rates. Companies can finally decide if they want to give the business to the shipper or if they should be looking for more competitive rates. It also provides the company with an advantage during contract negotiations.

Cost Control

Since freight cost benchmarking provides detailed insights into the average contracted freight rates, it allows companies to control excessive accessorial charges and additional surcharges. Companies can figure out ways to avoid these charges or decide alternative options. Additionally, by getting a deeper understanding of competitive shipping rates, companies can handle negotiations better and build a stronger relationship with shippers.

Varied Applications

Although it may seem as cost control is the end goal of freight cost benchmarking, there’s more on offer than just cost control. Freight cost benchmarking can also assess local and regional markets, trade lanes, and multimodal transport systems to identify and avoid root cause issues which enable companies to evaluate the contracts. Additionally, it can also provide an understanding of the market dynamics, which enables companies to maintain optimal inventory levels.

To know more about freight cost benchmarking, freight benchmarking, freight shipping costs, and ocean freight rates:

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IR3

Innovations Reshaping the Future of Logistics Industry

The outrageous success of e-commerce and global trade has had a remarkable impact on the growth of the logistics industry. With the increasing demands, the logistics industry needs to come up with constant innovations to cater to the ever-growing needs of the market. Additionally, the dynamic nature of business processes, new consumption patterns, and changing consumer behavior are bringing about constant innovations in the logistics industry. Get More Info

Key innovations in logistics

Internet of Things (IoT)


The ability of multiple sensors within the vehicle and other monitoring devices to communicate with each other can provide highly integrated real-time transportation and warehouse management solutions. IoT paves the way for efficient resource planning by giving businesses the ability to monitor the condition of their packages remotely.

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Commercial Transportation Trends in 2017

With digital proliferation, companies in the transport business have been compelled to assess the market space and identify the major commercial transportation trends. Transportation companies are devising strategies to embrace innovation and advanced technology to customize product offerings according to the consumer preferences. By integrating its business processes with the emerging commercial transportationIR_Brochure trends such as automated fleet management, big data analytics and market intelligence, and advanced telematics such as predictive networks, robotic process automation, and autonomous vehicle technology, the transport companies can achieve flexibility and build capabilities to focus on the most profitable segment and cater to their target market. The benefit of identifying the commercial transportation trends and embracing innovation is that the companies can stay abreast of their competitors and expand their market share by offering an extensive product and service line.

Let’s have a look at the commercial transportation trends that are set to disrupt the transportation and logistics industry in 2017.

Top Four Commercial Transportation Trends

Emerging trends in the commercial transportation sector have coerced companies to develop modern data networks, build flexible and customer responsive models, enable transparent shipment tracking, and offer end-to-end delivery schedules. Commercial transportation companies have been diffident about adopting the emerging industry trends due to the absence of a digital infrastructure, security, and cost concerns. However, these four evolving commercial transportation trends are set to positively impact the organization’s bottom line and improve operational efficiency, which are as follows:

  • Self-Driving Vehicles – Advancements in technology has given birth to driverless vehicle software, which aims at redesigning the existing fleet with self-navigating equipment and sensors. The self-driving or autonomous vehicles embedded with advanced technology enable the vehicle to determine road conditions, collect data, and communicate with other trucks connected over the cloud
  • Real-Time DataBy leveraging big data analytics and advanced telematics, the transportation companies can track and monitor the vehicle location and condition, and leverage the sensors to estimate freight, available space, best possible route, and estimated delivery time
  • Robotic Process Automation – The transportation companies can leverage advanced robotics and process automation to drive mobility, increase operational efficiency, and identify appropriate locations for pick-up and delivery. By integrating advanced robotics within the organizational processes, transportation companies can minimize labor costs and speed up the delivery process
  • Predictive analytics – The transport companies can leverage big data analytics and data mining tools to improve their bottom-line by leveraging customer and shipment information. The insights gained through predictive analytics tools can be leveraged to identify consumer trends, market developments, utilize this grass-root level information to tailor their product offerings, and devise effective marketing strategies and promotional campaigns

View our latest case study on how organizations are leveraging the commercial transportation trends to gain a competitive advantage and expand their revenue streams.

The Infiniti Way

The rule of thumb to survive in the market, create lasting impressions, realize business objectives, and drive profitability is to listen, identify, and analyze customer and market information.

“In this dynamic and competitive market environment, it is essential for organizations to gain an in-depth knowledge of their target customers and leverage these insights to improve their decision-making process.”

With more than 14 years of experience, Infiniti Research has worked with several clients across the globe and provided various business intelligence services that has helped them make strategic business decisions wisely. We have worked with over 120 plus clients, including 55 Fortune 500 companies and helped them build capabilities and drive bottom-line growth by leveraging the constant influx of information and data. With the help of our team of expert analysts and consultants, we strive to complement our client’s business objectives to discover growth opportunities and drive business excellence.

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