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transportation industry

Top Trends Influencing the Transportation Industry Market Size

Transportation Industry Analysis

The transportation industry is the backbone of the US economy and an integral part of almost every business. It takes a major share of a nation’s GDP for investment, revenue generation, and employment creation. By investing in this sector, many multinational companies position themselves to better facilitate the flow of goods in the market. However, companies must analyze numerous distinct business models existing within the transportation industry that are reshaping the industry with the involvement of newer megatrends. Not only this, but they should also assess how the entry of new players is giving the desired momentum to the industry. To help companies analyze all such factors, we have highlighted the key factors impacting the transportation industry growth and market size.

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Key Factors Impacting the Transportation Industry Market Size

Fleet management system

The new age fleet management system now offers a variety of new features and functions. Managers can set up geofences to track the movement of vehicles, optimize routes by leveraging real-time data, and improve vehicle utilization. They can also track vehicle maintenance needed to avoid breakdowns. Additionally, they can track factors impacting the safety of vehicles and improve their services. This is improving the services offered by the industry and increasing the transportation industry market size.

Emergence of e-commerce alongside traditional channels

Growth of online-driven business (B2B) and business-to-consumer (B2C) has magnified the criticality of meeting customer expectations. This has increased pressure on the transportation industry to reformulate their e-commerce transportation strategy and enable delivery speed apart from delivering dependable and flexible services. Shippers can no longer rely on any shingle mode of transportation to improve their customer experience. Therefore, companies must focus on improving visibility, enhancing end-to-end transparency across the entire network, and delivering competitive services at profitable margins to increase the transportation industry market size. 

Wondering how the growth of e-commerce channels can increase the transportation industry market size?

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Internet of Things

The IoT technology makes it possible for companies to monitor equipment, control devices by using sensors and network communications. It can up-stream in the ordering, processing and warehousing chains and make the supply chain more responsive. During transport, companies can gain better insight for shippers and receivers, capture information about the truck and environment, provide last mile visibility to cold chain logistics companies and improve the transportation industry market size.

Inability to gain insights regarding the latest technologies can impact the transportation industry market size. Stay a step ahead by requesting a free demo of our procurement platform and gain exclusive transportation industry insights from procurement experts.

Drone delivery and driverless cars

While few big companies have announced their plan to use unmanned flying drones to deliver products to customers, cost factors are likely to postpone their operations for a few more years.

On the other hand, driverless vehicles can affect the logistics and transportation market size. Companies have already started testing driverless cars on open roads and working to improve the capabilities of such vehicles. Also, some manufacturers have introduced semi-autonomous driving capabilities in their vehicles. This will address the issue of labor shortage and improve safety while increasing the transportation industry market size. 

To gain accurate transportation industry market size and statistics, request for more information from our analysts.

freight transportation

Improving the Transport Efficiency and Fill Rate for a Freight Transportation Company

Freight Transportation Industry Overview

Investments in the infrastructure have made Sweden as one of the top logistics markets in Europe. The central location of the country in the region makes it preferred choice for most companies that look to consolidate distribution and warehousing activities in Northern Europe to one central location. However, the fragmented nature of the freight transportation industry makes it difficult for logistics managers to meet customer expectations and ensure on-time delivery. This case study is a classic example of how we helped a company to improve their transport efficiency and increase the fill rate.

Business Challenges Faced

The client, one of the largest freight transportation companies in Sweden was facing predicaments due to fragmentation in transport flows. This growing fragmentation and focus on customization was impacting the efficiency of their transport network. Also, the decrease in fill rate and end-customer demands was creating pressure on the client to improve their transport efficiency and redesign their business model while maintaining profitability. However, the client lacked the necessary insights involved in the transport network.  The client, therefore, collaborated with SpendEdge to optimize routes, change contractor agreements, improve business relationships and increase the power of transactions in the supply chain.  

Want to know how redesigning the business model can help companies in the freight transportation industry to improve transport efficiency? Request a free proposal and our team will get back to you asap.

Our Research Approach

To help the client develop an effective business plan, the experts at SpendEdge performed a detailed freight transportation industry analysis. They identified intermediary companies (transaction level) who couldn’t fulfill their contractual obligations. This helped the client to change the interface between stakeholders and become more transparent to meet with digital information in all stages of the supply chain. Also, our recommendation to include transport planning and the procurement process in the digital information flow improved route optimization and resulted in significant savings in driving time.  

The comprehensive freight transportation industry report also helped the client to improve contract visibility and support procurement managers right from the agreement in principle to contract execution. This helped the client to associate with better intermediary companies and get the best possible terms during every transaction. Moreover, the improvised business model empowered the client to identify strategic contractors involved in the process.

Wondering how including transport planning and the procurement process in the digital information flow can reduce driving time for companies in the freight transportation industry?

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Engagement Outcome

SpendEdge’s customized freight transportation industry report helped the client to improve supply chain visibility. Also, the insights offered improved the transport planning and optimized the route, reducing the driving time by 33%.  The solution offered further improved the transport efficiency of the client by 40% and increased the fill rate significantly.  

Improving the transport efficiency is vital for freight transportation companies to increase the fill rate Subscribe now to enjoy free access to SpendEdge’s insights regarding the freight transportation industry.

Best Practices for Companies in the Freight Transportation Industry

  • Have a clear understanding of licensed intermediaries who work to link up shippers with qualified carriers when they have products to move.
  • Check the legitimacy of intermediaries in order to operate the business legally.
  • Associate with suppliers who have some degree of experience in the business and formal education in the industry.

To gain detailed insights regarding the freight transportation industry or freight transportation services, request for more information from our analysts.

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