Categories
Supply Chain Expertise

Top 3 Ways Artificial Intelligence Will Revolutionize Logistics & Transportation

A few decades ago, artificial intelligence still seemed like a pipe dream – a far out technology that we wrote into our movies and television shows, not something that we could yet interact with on a daily basis. Now, technology has made leaps and bounds in our attempts to streamline as many processes as possible. For those who work in trucking and logistics, efficiency is key to determining profit and positive feedback.

According to The Economist, “McKinsey estimates that firms will derive between $1.3trn and $2trn a year in economic value from using AI in supply chains and manufacturing.” And going to the source itself, McKinsey claims that, “63 percent of respondents report revenue increases from AI adoption in the business units where their companies use AI,” indicating that there is significant potential for artificial intelligence in supply chain management. Below are three main ways AI is expected to change the industry: 

1. Demand Prediction

In an ever-changing market with high competitiveness, many businesses cannot afford to overestimate the amount of product it will need to carry in order to make a profit. Overestimating means that the company will lose time, money, and resources on the leftover product. On the other hand, lowballing your product amount might mean that you lose out on potential customers and income. What can you do? Recent studies by Deloitte indicate that AI has an ability to predict these product demands better than humans. With an unfair advantage, artificial intelligence can analyze and connect every piece of information and spit out probabilities in a much faster, cost effective way. In addition, AI can help predict individual customer needs by analyzing what products have been of use to them, and what products or services will continue to best serve them. Happy customers make return customers, and an industry running on happy, efficient transactions is an industry that is thriving.

2. Back Office Operations

In many companies, there are office tasks that seem repetitive and monotonous. For logistics companies, this reality is made even more daunting by the sheer amount of information and clerical responsibilities that workers must face. By combining AI with RPA (Robotic Process Automation), a different technology is created, called cognitive automation. Cognitive automation is able to analyze and optimize areas of logistics such as transport capacity, real-time decisions, and end-to-end supply chain. Having AI take over daily operations that clog the pipes, so to speak, helps improve the quality of your employee’s work, while lowering costs and errors.

3. Warehouse Automation

Using artificial intelligence to automate warehouse operations has the advantage of increasing revenue while lowering transportation costs that would otherwise be incurred. With the help of AI to predict demand for a product, companies can send products to regional warehouses ahead of time and cut back on costs by having more time to schedule routes and other arrangements. Warehouse automation also brings the addition of computer vision, which can pinpoint and organize inventory, quickly and accurately. It can even communicate with nearby warehouses to help determine which location would be most efficient for the product to be shipped from.

What do you think? Is AI the future, or are there better ways to increase efficiency in transportation? Did we miss anything? Let us know by reaching out to us at marketing@zuumapp.com.

Related sources:

https://towardsdatascience.com/how-ai-changes-the-logistic-industry-3d55401778d

https://www.economist.com/special-report/2018/03/28/how-ai-is-spreading-throughout-the-supply-chain?FEATURE_ARTICLES_V1=0

https://www.zdnet.com/article/artificial-intelligence-works-its-way-into-supply-chains/

https://www.mckinsey.com/featured-insights/artificial-intelligence/global-ai-survey-ai-proves-its-worth-but-few-scale-impact

https://www2.deloitte.com/us/en/insights/deloitte-review/issue-19/art-of-forecasting-human-in-the-loop-machine-learning.html

https://www.sdcexec.com/transportation/blog/21070203/why-ai-and-cognitive-automation-are-the-next-frontier-in-transportation-and-logistics

Categories
Supply Chain Expertise

Technology in the Trucking Industry: What the Future Holds

The trucking industry is an example of a significant business vertical where technology can help optimize segments of an industry while also benefiting our planet and our society. Previously, transportation mainly relied on a classic model consisting of transportation infrastructure, fragmented technology, and more than 700,000 carriers with fewer than 20 trucks in the US alone. However, like with every other industry, companies have had to change with the times. The constant changes in tech have pushed those in logistics to diversify and transform in order to maintain a competitive advantage. Today, advances in technology promise to provide solutions to some of the industry’s biggest obstacles. 

How can technology solve these issues in the logistics industry? Let’s dive right in for a brief overview. 

1. The Driver Shortage

Always at the forefront when discussing what plagues freight, the driver shortage is a real issue for the industry. With drivers and employers butting heads over profits, and the American Trucking Association having officially recognized an ongoing shortage, companies in the meantime are at a loss of what to do. A layered situation, the shortage is not something that has appeared overnight, and it can’t be resolved overnight either. Today, there are only two solutions: Adding capacity by adding drivers & trucks or making what is called dark capacity accessible to shippers through technology.

Training drivers takes time and is costly. Technology, like Digital Freight Marketplaces, can be implemented faster, and instantly solve the problem of capacity access, as long as empty miles and unused capacity still exist. DFMs like the ZUUM DFM just require more adoption, where more shippers start to use DFMs for both dedicated and spot freight. The resulting increase of capacity utilization and resulting fewer empty miles also have a positive effect on carbon emissions. ZUUM’s new backhaul finder is a great example of technology that can alleviate the capacity problem for shippers, while increasing profitability for carriers by adding paying loads instead of empty miles.

In the future, automated trucking – either driver assisted autopilots or fully self-driving trucks – are also a solution that may be able to reduce the size of the problem. Some self-driving trucks are being tested today and may be more common on our roads within the next decade. According to Chuck Price, Chief Product Officer at TuSimple, “their new autonomous trucks can see forward over a half mile, farther than any other autonomous system in the world, and that they can run during the day, the night and even in the rain.” This technology could reduce the capacity problem, especially during times when transportation demand is high, as a temporary supplement to the truckers on the road today.

2. Lack of Efficiency

Time is money, and money is time. Regardless of where you work, almost every businessman will tell you the same thing. The good news is, there are countless ways to improve efficiency at every step of the way, thanks to different technology solutions. We can see this at the ground level, such as by using truck scales: they allow workers to weigh the shipment as they are simultaneously loading and unloading it, versus having to manually carry it back and forth in order to weigh it. Saving your worker’s time and energy helps ensure that they are happier at work and makes it so that the surplus is being reinvested elsewhere, thereby benefiting the employer. Software and driver apps that help truckers find the cheapest available gas, improved GPS features, and automated freight matching are all key improvements that help further freight.

3. Legacy Tools

The few technological enhancements in trucking are often legacy tools that has not been updated for years. New logistics technology companies are emerging and are offering innovative solutions. Software-as-a-Service, or SaaS, has been a game changer for many fleet management companies. From maintenance, route planning, trend analysis, and real-time updates on the shipment process, SaaS has made it possible for companies to go online and subscribe to a service without being locked in for years, potentially missing out on further technological innovation. Being internet-based increases accessibility and lets multiple parties make use of the software. A 2016 survey reported that over 60% of companies were already using SaaS, making it a welcome addition to technology that has improved trucking on a significant scale. 

At ZUUM Transportation, we believe that the future is in the details, and those details can be found in the technology that we choose to invest in. Learn more about our technology solutions here.

Related Sources:

https://www.mytruckpulse.com/blog/technology-innovation-in-trucking-industry.html

https://www.ttnews.com/articles/ai-trucking

https://hackernoon.com/5-future-transportation-technologies-that-will-boom-or-bust-in-2019-b5ee59f7f8f

https://interestingengineering.com/automated-trucks-are-coming-much-sooner-than-you-think

https://www.softwareadvice.com/resources/fleet-management-trucking-technology-trends/

https://www.geotab.com/blog/benefits-of-saas/

https://www.computereconomics.com/article.cfm?id=2253

Categories
Broker News Logistics News Supply Chain Expertise

ZUUM Transportation Raises $12.58 Million in Seed Funding

NEWSWIRE PRESS RELEASE  UPDATED: AUG 18, 2020 15:43 EDT

ZUUM announces the recent close of a 2nd round of seed funding at $8.58 million for a total raise of $12.58 million to date. The funding accelerates critical technology innovation in the fragmented logistics industry. ZUUM automates freight for shippers, brokers, carriers, and drivers on one universal platform.

We are humbled and inspired by the investors who share our vision and believe in our mission, including Estes Express Lines, BNSF Logistics, Plug and Play Ventures, Logifruit of Spain, Estes Forwarding, SAIC Ventures, and Holman Growth Ventures,” states Mustafa Azizi, CEO of ZUUM Transportation, Inc.

Since its founding in 2016, ZUUM has grown to deliver thousands of loads per month for more than 235 shippers, including several Fortune 500 companies. Freight is booked on an integrated logistics platform, matching shippers with pre-vetted carriers. Automated bidding, dispatch, track & trace, workflow automation, digital document management, accounting, and predictive reports & analytics help maximize productivity. ZUUM offers the most comprehensive solution in the market to date and the first digital broker-in-the-box software.

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“We invested into ZUUM because of the agile, comprehensive technology suite they have developed. We anticipate strong demand from shippers, brokers, and carriers worldwide. ZUUM leadership has deep industry knowledge and a true partnership mindset. We look forward to expanding our cooperation,” says Pat Martin, VP Corporate Sales & Strategic Planning, Estes Express Lines (largest, privately-owned freight shipping company in North America).

AUTOMATE FREIGHT

In 2016, CEO and Founder, Mustafa Azizi, and COO and Co-Founder, Matt Tabatabai, identified an urgent need for more efficiency in the $800 billion trucking industry. Fragmented processes, legacy software, unsustainable revenue models, and a lack of transparency are reducing profit and performance for all participants in the freight industry. For over 20,000 freight brokers in the US, the digital broker-in-the-box solution solves scalability issues. By allowing brokers of any size to digitize and automate, ZUUM increases broker productivity by more than 40%.

FIRST LOGISTICS SUPER PLATFORM

Today, ZUUM delivers efficiency by automating freight nationwide. Digital freight marketplace, shipper TMS, broker software, carrier TMS, and driver app are all connected on one Logistics Super Platform.

Are you a shipper? Shippers access instant freight quotes and gain real-time load visibility.

Are you a freight broker? Brokers accelerate load coverage and automate client notifications.

Are you a carrier? Carriers receive transparent commissions, profitable loads, and route optimization.

ZUUM delivers shipments reliably at a lower cost for shippers and at a higher profit for carriers, while reducing carbon emissions.

“We reduce transportation cost and improve service levels for shippers. Our software minimizes load failures and increases customer satisfaction for brokers. We reduce empty miles and maximize profitability for carriers. After just four years of operations, shippers, brokers, carriers, and drivers from all over the nation are counting on ZUUM. We are proud to automate their freight today, and will continue to build technology that solves the most critical challenges in logistics,” says Matt Tabatabai, COO of ZUUM Transportation, Inc.

About ZUUM Transportation

ZUUM Transportation, Inc. is a rapidly growing tech startup transforming the $1.2 trillion logistics industry. Their vision is to optimize logistics and streamline supply chains globally on one efficient, automated, and easy-to-use super platform. ZUUM combines a digital freight marketplace with a shipper TMS, broker software, carrier TMS, and driver app.

ZUUM – AUTOMATE YOUR FREIGHT ™