Today’s transportation industry faces a growing urgency to deliver service faster, more efficiently, and at scale amidst numerous challenges. Companies must find ways to maximize existing capacity to meet increasing demand for on-time (or just-in-time) delivery even as employment numbers fall. Even freight costs are facing increasing scrutiny. To mitigate these risks transportation companies will need to utilize intelligent condition monitoring.
Key transportation concerns of business owners
The complexities of the transportation sector limit not only its ability to thrive but also to change and grow to meet today’s fast-changing environment. From consumer ride-share services to e-commerce free shipping, transportation companies face challenges at every turn.
Safety and compliance are two key components of concern for many in the transportation industry. Information from Juniper Research suggests that ride-sharing services such as Lyft and Uber, for example, will grow from 4.3 million users to 8.6 million by 2022. Yet regulatory changes, such as London’s recent refusal to allow Uber to operate due to safety concerns, continue to challenge of these startups. Trucking companies in the U.S. are now working to ensure they are in compliance with the logging device mandate, implemented in December 2017, that securitizes drivers and safety practices within the organization.
Companies are also facing difficulties within daily operations. For example, the U.S. Department of Transportation forecasts a massive 40 percent increase in the transportation market over the next 30 years, much of which is coming from increased demand from online purchases. Hampering this growth is a significant lack of workers. A shortage of as many as 225,000 transportation employees is expected by 2022.
In short, there is a growing need for on-time delivery and more demand for capacity planning to ensure that companies can maximize capacity, reduce costs, and minimize the impact of the worker shortage. Safety and compliance issues add an additional challenge. How can companies mitigate these risks without hampering growth?
Intelligent condition monitoring creates new opportunities
At the heart of the industry’s most prominent resource is data. Implemented and utilized properly, data can help transportation companies better meet the challenges they face and enable organizations to get the highest possible return on their assets. To achieve this, they must gain insight that helps them better align assets and resources to achieve their goals.
Imagine how efficient transport asset management could impact each sector of this industry. It aids in reducing costs while improving service. It can help companies to mitigate risk, including compliance-related risks and those specific to the industry. Here’s a closer look.
Predictive maintenance and service tools
Predictive maintenance and service can prevent asset downtime before it happens. Companies can minimize the number of vehicles and employees accordingly. Such insight also helps reduce unplanned downtime and, over time, maintenance costs. This is done through a connected, intelligent condition monitoring platform.
Existing maintenance programs also become more efficient. Instead of tapping into unknown problems, maintenance teams have more insight into what’s truly happening within the vehicle to tailor their use of maintenance time to maximize the vehicle’s performance. This also works to increase the lifespan of any vehicle, reducing costs even further.
Vehicle insights and asset intelligence networks
What if assets could be used more effectively? As noted, capacity planning has become essential to ensuring on-time delivery across the industry. With the help of data insights and intelligent condition monitoring, it is possible to increase asset utilization without hampering delivery times, so companies do not need to worry about customer delays.
There is also more opportunity to boost asset management across the ecosystem by collaborating more fully and linking seemingly unrelated sectors to improve efficiency and drive capacity models.
All of these factors deliver key benefits to the transportation industry. Transportation companies are able to deliver more and higher-quality of transport services using fewer assets. They achieve a higher level of reliability and reduce overall costs. In the current environment, in which infrastructure is constrained, such engagement empowers all divisions of the industry. Ultimately, it leads to responsible growth due to better service, lower costs, and better asset management. Improved maintenance also means a cleaner planet and greater energy efficiency across the board.
It all stems from access to information, intelligent condition monitoring, and a focus on innovation in a tight, limited industry. Transportation companies that implement such opportunities are likely to see numerous gains for years to come.
Learn how to innovate at scale by incorporating individual innovations back to the core business to drive tangible business value by reading Accelerating Digital Transformation in Transportation.