The red alert lies in the fact only 6% of companies report full visibility on their supply chain, while 69% of companies do not have total visibility. Also, almost 70% of the companies don’t use any technology to monitor their transport performance, and that’s why they fail to meet supply and demand changes before they cause too many problems.
It’s a traffic jam out there on the supply chain highway. Are you stuck in it? Taking into consideration the fact Transportation management system will rise and reach 17, 8 billion USD by year 2025. it will just get more crowded.
But how to take a giant piece of that delicious cake? If we allow the numbers talking then they say the growth rate from 2023. until 2030. for U.S. market is estimated at $1.7 Trillion, while China is forecast to grow a 6.2% CAGR. Within Europe, Germany is forecast to grow at approximately 1.7% CAGR.
For all of you in manufacturing, the great news is the manufacturing segment is considered the largest global transportation management market share of over 35%. Regarding the modes of transportation, the roadways segment accounted for the largest transport market share of more than 41%. Looking at the ground transportation industry statistics, road freight is the dominant segment, controlling nearly one-third of the total global logistics spend ($1972.9 billion). By total sales of European road freight transport, Germany leads the way with a market share of 20.1%, ahead of France (10.7%), Italy (9.9%), the United Kingdom (9.9%), and Spain (9.6%).
Last-mile delivery takes part in the biggest (53%) share of delivery costs, while 29 billion is the number of miles that truckers drive over with empty or partially empty truckloads. Speaking of that, many logistics companies worldwide use the Last-Mile App for excellent optimization of their last-mile delivery. It is also estimated that 40% of the mileage driven in Europe could be covered by autonomous vehicles in 2030.
All of these numbers sound interesting, so what’s the catch?
Many shippers and players in the transport and logistics business are facing some serious issues, which create an uncertain future and planning. The guilt for it can be found in a number of lingering issues including the pandemic, huge increases in energy prices, large fluctuations in the supply and demand for transport capacities, delays in port trans-shipment, and bottlenecks in hinterland transport. Above all, there’s also the environmental challenge and the question of how to reduce CO2 emissions of their shipments and deal with the costs. Modern logistics world order made supply chains scream louder than ever they need to take every bit of CO2 reduction into account and leverage climate potential step by step wherever sensible and effective. China emits nearly 10 billion tons each year, more than one-quarter of global emissions, and it’s followed by the US coming in second place. One of the world’s largest per capita CO2 emitters is also a major oil-producing country. In many states worldwide already exists regulatory requirement for carbon reporting, so companies are rushing to find tools for analyzing their carbon impact, and carbon footprint calculator popular on the market is the CO2 Emissions App, thanks to which you can get full emissions transparency for individual shipments and take responsible climate actions.
Another thing the transportation industry seems to lack over and over again is the big percentage of those who embraced AI-based solutions, to monitor their logistics activities and improve organizational efficiency quickly and precisely. Only 6% of companies report full visibility on their supply chain, while 69% of companies do not have total visibility.
Just 22% of companies can shift to meet supply and demand changes before they cause too many problems. This can lead to more supply chain disruptions, costing a massive 62% hit to finances. The main problem is, even though over 80 % of supply chain professionals agree software and data analytics could be very important in reducing landing costs, almost 70% of the companies don’t use any technology to monitor their transport performance.
Those who will continue growing along with progress are the ones who use data-driven solutions to improve transportation efficiency and react to real-time changes in conditions. So, upgrade the decision-making process in supply chain planning and grab your advantages, which can easily launch you high above the competitors.
No better moment to try more than 30 Supply Chain Apps for end-to-end visualization and optimization of your transport activities, for assigning shipments to available vehicles in an optimal way and minimizing your costs. Then you will hit the road and love the ride!