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Ground transportation – a key to success

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In its latest research report, DHL establishes that corporations around the globe are convinced that their business success depends, amongst others, on the quality of road freight transportation. Three quarters do have the opinion that investments into ground transportation will have a positive impact on their company growth. 83 percent of businesses are willing to pay more for better and value-added services as long as they provide a measureable return on their investment. This is one of the central findings of the research report “The Logistics Transport Evolution: The Road ahead“ commissioned by DHL Supply Chain. In the context of this survey, more than 200 supply chain and operations professionals, from sectors including automotive, consumer, life sciences, technology, engineering and manufacturing all around the world were interviewed.

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Strategic element

The report shows that across sectors and regions, companies are increasingly viewing ground transportation as being more than a tactical commodity. Thus, 71 percent of the interviewees meanwhile consider ground transportation to be a strategic component of their businesses and to have a direct impact on their business performance. 75 percent of the respondents believe that investments in ground transportation will directly help their company sales. “Transport is undoubtedly a critical aspect of the global business environment,” says Javier Bilbao, Global Transport Lead & CEO Latin America, DHL Supply Chain. “The findings indicate that companies across sectors and markets are now recognizing its strategic value. We undertook this study to gain an insight into exactly what companies expect from their transportation service providers, both today and tomorrow. Our research has shown us that customers are increasingly looking for complete solutions with a global reach as they have the capability to solve a wide range of transportation issues and requirements.”

The future will be digital

In this course it has to be noted that global shifts in the business environment also affect the ground transportation landscape. In particular, the exponential growth of e-commerce and its implications on service was identified by 65 percent of companies as having a significant impact on their supply chain in the next one or two years. Digital technologies will be a decisive factor in the further development of ground transportation. With the aid of Artificial Intelligence (AI) and data analytics it will be possible to manage the order profile and shipping patterns of customers' increasingly complex and demanding operating models – at the same time optimizing cost and service. That is why they are now viewed as essential services, rather than added benefits.

AI and data analytics have to become standard

Broader societal factors were also highlighted as presenting associated challenges, with 61 percent of companies referencing the increase in urbanization as a factor that will significantly impact their future business. Modern technologies will help to manage this complex environment. They are increasingly seen as a standard requirement of 3PLs: more than two thirds (67 percent) of companies believe that big data analytics and artificial intelligence (AI) are services that are essential for 3PLs to offer their shipper customers.   If you are interested in the full report please contact freight.connections@dhl.com

Editor:

Torsten Arnold

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