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Logistics Industry

Dodging Challenges in Transportation and Logistics

transportation and logisticsThe transportation and logistics sector is struggling to enhance its economic profit. As such it is critical for companies in the transportation and logistics sector to make tougher and astute strategic decisions than ever before. Despite the constant upheavals in the market, several trends in transportation and logistics will create unprecedented opportunities for players in the sector to venture into new markets and re-engineer their existing business models. Based on our transportation industry analysis, to design and implement strategies to overcome key roadblocks in transportation and logistics, senior executives of companies should ensure their strategies incorporate some of the below mentioned imperatives.

Building compelling strategies will require businesses to have tailored analytics, granular understanding of individual markets, and flawless judgment. Request a free proposal to know how we support clients in these areas.

Focus on digital transformation

Most stakeholders in any industry including customers and competitors are increasingly inclined towards digitally enabled change. Transforming key challenges into opportunities will require companies in the transportation and logistics sector to define a digital strategy that is tailored to the value drivers of their organization. They can start by building on the company’s current product portfolio, customer relationships, and other assets. This will encompass defining and executing objectives that digitize core processes, reinforce the business model, and venture into new frontiers.

Agility in resource allocation

Flexibility in resource allocation makes It possible for transportation and logistics companies to gain higher TRS. As the sector is largely asset-intensive, it becomes necessary to make huge strategic bets. It is no longer effective to make strategic decision based on the previous years data. Strategic decision-makers can unlock the benefits of agility in the transportation and logistics sector by overcoming common barriers that hinder flexible resource reallocation such as a lack of intent, an inadequate process, or the absence of the right skills and mind-sets.

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Consider M&A opportunities

The transportation and logistics industry currently has excess cash and debt raising capacity. This means that several transportation and logistics companies stand to benefit from M&A opportunities. Rather than focusing on gaining the “big deal” players in the sector will be required to develop a programmatic capability to spot and execute attractive targets for acquisition. In addition, companies must continue to use alliances to access new markets and capabilities in a cost-effective manner.

Learn more about Infiniti’s solutions for companies in the transportation and logistics sector

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Enhancing Sales Rate by 13% for a Transportation and Logistics Company – Competitive Intelligence Engagement

Competitive Intelligence Solution for the Transportation and Logistics Industry

As digitalization takes hold and customer expectations evolve, companies in the transportation and logistics industry are under pressure to remain competitive, deliver higher quality of services to customers, and adapt innovative ways to optimize their logistics processes. Therefore, for transportation and logistics companies, identifying new market trends before the competitors and having accurate market knowledge have become important. Also, keeping a constant watch on the key competitors’ business plans and actions have become vital to gain a leading edge in today’s competitive marketplace.

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Business Challenge

 The client is a transportation and logistics company based out of Europe.

The client’s unstructured approach to supply chain management resulted in huge losses for the company. Also, the client witnessed a huge dip in their overall profit margins. Furthermore, the company’s inability to conduct periodic assessments and redesign their business operations with evolving market demands affected their overall business growth.

The company even started losing their customers to their competitors. As such, they realized the need to conduct a competitive intelligence study to understand the competitive landscape and analyze their competitors’ plans and actions.

Furthermore, the client wanted to:

  • Better understand the strengths and weaknesses of their competitors, emerging transportation and logistics industry trends, demand fluctuations, and assess the potential bottlenecks in the market to make well-informed business decisions
  • Drive business efficiency and react quickly to market movements
  • Stay informed about the company’s operating environment and make better decisions on inventory.

Do you need help in logistics and supply chain management? Contact us today!

Our Approach

With Infiniti’s expertise in offering logistics market analysis solution, the experts conducted a detailed study of the European transportation and logistics industry. Also, the experts analyzed the latest trends in the transportation and logistics industry, identified logistics market size, and evaluated the European logistics industry growth rate.

By conducting a competitor analysis, our experts analyzed the client’s key competitors. In this phase, the experts analyzed the client’s performance compared to the leading transportation and logistics industry companies in Europe. This phase of the engagement helped the company in the transportation and logistics industry to understand their strengths and recognize areas where they lacked compared to their competitors.

Also, our experts helped the company in the transportation and logistics industry to identify profitable technologies and processes adopted by their competitors to enhance supply chain operations.

Results Obtained

With the help of Infiniti’s competitive intelligence solutions, the transportation and logistics industry client was able to respond quickly to market changes, which subsequently gain a competitive edge over their competitors. Additionally, the company in the transportation and logistics industry was able to adopt a customer-centric approach, work closely with their target customers, and drive customer loyalty with enhanced logistics management processes. As a result, the company was able to enhance their sales rate by 13% in a year.

 Transportation and Logistics Industry

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3 Major Challenges Facing the Logistics Industry and Measures to Tackle Them

Today, global economics and logistics play a very crucial role in catalyzing trade and by, extension, ensuring the success of the logistics industry. The logistics industry’s landscape is huge and is made of many companies with a variety of services. The shifting preferences of the consumers, the growing demands of clients, and complex business models are a few factors that pose a serious challenge to companies in the logistics industry. Similarly, it can be said that personalizing a conventionally standard service is a humongous task and a significant challenge for companies operating in the logistics industry. In this article, we have listed out some of the major challenges in the logistics industry. Also, we have suggested a few measures to help logistics managers to derive optimum results.Contact US

Logistics Industry Challenges

Trimming costs of transportation

With the increasing prices of fuel and peaking inflation indexes, the cost of transportation is increasing daily. Trimming a few corners here and there does not always help in meeting the cost-cutting goals of transportation. So, there is a need to adopt a strategic approach to reduce or eliminate bottlenecks. This can prove to be pivotal in revitalizing network designs and can help cut down transportation costs. The use of a visibility software can help in simplifying these challenges in the logistics industry.

Managing the enormous amount of information

There are a lot of figures and data flowing in on a daily basis in the logistics industry. Such data helps in ensuring the safety of the staff and fleet, cross-checking route maps, fleet loading, sanctioning fuel bills, and so on. This can be a time-consuming and tedious process, if done manually, and can take your focus off from attention to details. This challenge can be overcome by investing in an automated solution or application for fuel bills, data entries, loading and unloading ledgers. Consequently, it can help in streamlining operations in the logistics industry by offering the luxury of time to logistics managers to look at the finer nuances of operations.Get More Info

Offering customized and segmented services

In the age of globalization, logistics management has become a multi-layered job where managers are expected to track multiple supply chains simultaneously. Apart from punctuality in the delivery of goods, offering customized services to customers and suppliers in terms of pricing and packaging is also very important. Here flexibility becomes the keyword to success. Using a software system to automate the process of projecting different services to different customers can save time as well as efforts. Additionally, it can bring added accuracy to data compliance and compilation processes.

Infiniti’s Solution

Due to factors like growing competitive pressure and rising fuel cost challenges, companies in the logistics industry are forced to consistently walk the tightrope of balancing price competitiveness and delivering a consistent brand experience. This has made it necessary for aspiring logistics companies to leverage market intelligence for developing effective strategies for growth. Infiniti Research, with its expertise in offering actionable market intelligence solutions, helps businesses to understand the local competition and gain actionable insights into formulating effective growth strategies.  Our flexible deliverable formats include online platforms with relevant infographics that help understand and assess the logistics market, globally.


Are you planning to drive reliability and improve delivery standards in the logistics industry? Request a proposal now.

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The Road to Transformation: AI in the Transportation Industry

Often, the use of advanced technologies in the transportation industry is affected by factors that are difficult to predict. This includes things like traffic, human errors, or accidents. However, artificial intelligence has taken off well in the transportation industry. AI uses observed data to make or even predict decisions appropriately. Furthermore, the use of artificial intelligence results in a significantly lower cost of labor in the transportation industry. Companies in this sector can also solve the issue of employee’s long driving hours and breaks between drives with fully automated fleets. Also, the emergence of industry-wide standards including blind-spot alert, adaptive cruise control (ACC), and advanced driver assistance systems (ADAS) would further fuel the growth of artificial intelligence in transportation.

Leading transportation services providers have started incorporating autonomous tracking and artificial intelligence into their vehicles to track potential real-time data. Want to identify lucrative technologies and processes to capitalize on to yield huge profits? Request a FREE proposal today!Request Proposal

AI in the Transportation Industry: Benefits

Public safety

Artificial intelligence helps companies in the transportation industry to ensure the safety of the public when using their services. Safety of citizens using public transport in urban areas can be improved by tracking crime data in real-time. This will also facilitate the police to increase their efficiency by patrolling and keeping the citizens safe.

Autonomous vehicles

Self-driving cars have been the new buzzword in the transportation sector in recent times. They use artificial intelligence to function and make calculated decisions on the road. Self- driving vehicles prove to be a great opportunity to reduce the number of accidents on highways and increase productivity.

Want to gather comprehensive insights into the benefits of embracing artificial intelligence in the transportation industry? Contact us today!Contact US

Better planning and decision-making

The road freight transport system can utilize accurate prediction techniques to forecast their volume using artificial intelligence, which simplifies the transportation company’s planning process. Additionally, several decision-making tools for transport can be designed and run using artificial intelligence. This will affect investments made by companies in the future in a productive way.

Pedestrian safety

Using artificial intelligence, the path of pedestrians or cyclists can be easily predicted, which would help in decreasing instances of traffic accidents and injuries. This will allow for more diverse transportation usage and an overall reduction in emissions.

Control traffic flow

Traffic flow has a great impact on transport. If this data is adapted for traffic management via artificial intelligence, it will result in streamlined traffic patterns and a significant reduction in congestion.  Also, real-time tracking and smarter traffic light algorithms can control higher and lower traffic patterns effectively. This technique is also effective in public transport for optimal scheduling and routing.

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Logistics Services Client Leverages Marketing Strategy Solution to Improve Customer Service

logistics services

LONDON: Infiniti Research, a global market intelligence solutions provider, has announced the completion of their latest marketing strategy solution for a logistics services client. Transportation and logistics is one of the world’s largest industries. The services offered by this industry range from taxis to trucks, airplanes, trains, courier services, ships, warehouses, barges, and logistics. To a large extent logistics industry now includes the use of artificial intelligence and robotics in terms of self-driving cars, trucks, and delivery vehicles. The growth of the global logistics services industry is directly related to the development of international trade flow and the current economic environment.

“Today, customers want full transparency into where their delivery is at all times. Moreover, as customer expectations have increased, and their willingness to pay for fast shipping has decreased. Hence, logistics services companies are leveraging the use of marketing strategy solutions to improve their position in the market. “says an expert at Infiniti Research.

 

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The solution offered helped the logistics services client develop a robust marketing campaign that resonated with the target audience. The solution also helped the client gain insights into ways to position the product in the marketplace and generate a better ROI.

Additional Benefits of The Marketing Strategy Solution

 

  • Devise a marketing mix to differentiate the offerings with that of the competitors within the logistics services space
  • Refine marketing activities and devise an effective marketing strategy to attract new customers
  • To know more, request a free proposal

 


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Supplier Identification and Profiling Helps a Renowned Cold Chain Logistics Provider Improve Supply Chain Efficiency by 20%

The increasing demand for frozen cooked and the semi-cooked food is expected to fuel the growth of cold chain logistics market in the coming years.

The cold chain logistics space is witnessing considerable growth, driven mostly by the rising demand for temperature-sensitive health products. The industry, at large, involves the transportation of temperature-sensitive products under controlled conditions. The products with limited shelf life such as dairy products, frozen food, pharmaceutical products, and meat products are transported and distributed using cold chain logistics. The relentless growth of the industry can be attributed to factors such as growth in the organized retail and rising export demand for processed and frozen foods. Apart from such factors, the rising adoption of multi-temperature refrigerator vehicles and growing preference for third-party logistics services may further influence the growth of the industry.

Here are some of the factors that may curtail the growth of cold chain logistics space:

  • Rising infrastructure costs: To establish an efficient supply chain process, extensive investments in specialist warehouses with temperature-controlled zones becomes a primary Moreover, to cater to the rising demands of the customers, it becomes essential for businesses to streamline their supply chain operations right from the source to the final delivery of products.
  • Traceability: In the cold chain logistics space, it becomes critical for the businesses to keep track of their product offerings and ultimately reduce the time-to-market for the products offered. The products involved in transportation can also include drugs that have to be properly administered. Consequently, businesses have to ensure consistency in their product offerings to meet the growing needs of the target audience.

To address such challenges and profile the most suitable suppliers, organizations are utilizing supplier selection solutions. Implementing an effective supplier selection process helps business identify and evaluate the most suitable suppliers and streamline their financial resources to meet the business requirements. Moreover, with the help of supplier selection solutions, businesses can drive customer demand and build a strong brand reputation for quality products.IR_Brochure

The Business Challenge

  • The client- A renowned cold chain logistics provider

The client, a renowned cold chain logistics provider, wanted to select the right suppliers and meet the regulatory standards to build a strong reputation for quality products. With the help of our supplier selection solution, the client wanted to ensure quality and safety in their product offerings and consequently meet the shelf-life expectations of the products. Moreover, the cold chain logistics provider wanted to seek ways to identify performance gaps and improve their overall business performance.

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Our Journey

To monitor the supplier performance, the supplier selection experts at Infiniti carried out extensive research comprising interviews and discussions with prominent stakeholders in the cold chain logistics space. In addition, to identify the performance gaps, the experts also compiled information from a wide array of reliable sources such as trade shows, industry forums, and company presentations in the logistics industry.

The Solution Benefits and the Business Impact

The supplier selection solution offered by Infiniti helped the cold chain logistics provider to select the right suppliers from a pool of suppliers. The engagement also assisted the cold chain logistics provider in assessing capabilities and comparing pricing points. Moreover, the solution offered also allowed the client to establish KPIs to analyze suppliers’ strengths and weaknesses.


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

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Market Intelligence

Infiniti’s Market Assessment Helps A Prominent 3PL Client to Fine-tune Their Marketing Initiatives

Business Challenge 

The client, a renowned 3PL company with business functions spread across the globe, wanted to understand the challenges and opportunities and develop effective marketing initiatives to reach out to the target audience effectively. With Infiniti’s market assessment solution, the client also wanted to comprehend the market potential and devise effective ways to evaluate the needs, expectations, and standards of the target customers.

To drive profits, organizations need to head forward and embrace new techniques and processes to unlock their hidden potential. Do you agree?

If yes, leverage Infiniti’s market assessment solutions to create a competitive advantage.

Solutions Offered and Value Delivered 

The market assessment experts at Infiniti followed a comprehensive research methodology comprising of interviews and discussions with prominent stakeholders in the 3PL industry to help the client implement new marketing initiatives. The experts also compiled information across a wide array of reliable sources such as trade shows, paid industry databases, and company presentations to help the 3PL client evaluate the potential risks across the industry.

With the help of Infiniti’s market assessment solution, the client identified the potential market opportunities and expanded their product and service offerings to niche target regions. Additionally, with market assessment solution, the client was able to evaluate the perceptions of the customers toward the products and services and accordingly fine-tune their marketing resources to enhance capabilities. Infiniti’s market assessment solution further helped them meet the needs, expectations, and standards of their customers.

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Future of Third Party Logistics

Third-party logistics, also known as 3PL, is an outsourcing system wherein storage and transportation services are outsourced to a specialist company. Delivery, packaging, inventory management, and cross-docking services are usually bundled with 3PL services. The rise of the e-commerce industry has been a significant driver for the global 3PL market in the past few years. E-commerce companies focus on selling the products through an online platform, and not all have their own logistics services. Also, startups, which are becoming increasingly frequent in today’s business environment, may not be able to afford their own logistics services, necessitating the use of third-party logistics. Additionally, the availability of industry-specific logistics services and the emergence of Big Data are expected to be the major drivers augmenting the growth of the industry.

With our market assessment solutions, deliver better business results despite the challenging circumstances in your market. Request for a free proposal!

Why Leverage Infiniti’s Market Assessment Strategies?

Established in 2003, Infiniti Research is a leading market intelligence company providing smart market assessment solutions to address your business challenges. Infiniti Research studies markets in more than 100 countries to help analyze competitive activity, see beyond market disruptions, and develop intelligent business strategies.

With 15+ years of experience and offices across three continents, Infiniti Research has been instrumental in providing a complete range of competitive intelligence, market assessment strategy, and research services for over 550 companies across the globe.

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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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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.

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