Technology is changing the face of the road freight industry significantly. While some business owners may feel set in their old ways, technological advancements disrupt the standard operation method more and more.
Logistic Business tends to develop along a tangent that makes the company more profitable over time. With new applications and systems, teams can manage their customers, employees, and inventory all in one place. Not only is the functionality increasing, but it is also capable of speeding up your rate of operations to light-fast speeds.
Recognizing and changing traditional scenarios
In the UAE, the road freight business is one of the most competitive companies across all fields. Every company has dozens of competitors at every level, and they all indulge in cut-throat competition for most of their orders.
Truckload prices are even decided based on carriers bidding on tenders and undercutting each other’s prices to stay in business. It leads to razor-thin margins, and it forces the company into a vicious cycle of procuring as many orders as possible to make a substantial profit.
However, this scenario is a result of one more thing; inefficient practices. Software manufacturers have made systems that minimize these inefficiencies and maximize profit and customer satisfaction rates simultaneously. Companies now choose to either get with the future of operations, or they will be overrun by companies who comply with new tools.
What issues plague the industry?
Out of the many issues that question and disbalance the financial stability of current business models, the following points are crucial to deal with because they tend to passively decrease your profits with time in ways you may not even recognize -
- Lack of transparency - This industry’s current business climate leads to mistrust among competitors where they might undercut prices to such an extent that being in the market becomes a problem. Their pricing models are unsustainable over the long term, which increases hostility between organizations and doesn’t allow them to see the benefits of long-term collaborations.
- Inefficient use of assets - Because of a rudimentary approach towards truck loading and shoddy freight allocation, trucks waste a lot of earning potential. It usually happens when trucks return with no cargo or partially filled spaces. People fail to recognize that this unoccupied space, compounded over a long time, severely limits their earning potential.
- Outdated manual processes - Most freight companies insist on employing people on jobs that can be single-handedly executed with machines and automation. It increases their costs and further decreases profit margins.
How is the industry responding?
Once companies realized their shortcomings, they became open to the idea of automation across all verticals and integrating the boons of the digital age to maximize efficiency. Accordingly, they took the following steps -
- Automation of processes - Companies have started automating their core procurement and processing methods. Some companies have even created communication platforms where customers can directly engage with their services faster than traditional cold calls.
- Respecting digital startups - Companies recognize new-era start-ups and their talents and skills and hire them for software enhancement, business model upgradation, and data-driven consultancy services.
Trukkin, a UAE-based trucking company, focuses on continually improving to provide better services to their customers. With fast response times and completely transparent pricing models, Trukkin leads the industry with its convenient operations. You can expect a stress-free tender management process with a completely new approach when you choose Trukkin.