Challenging the Status Quo
Transportation and logistics companies have long adapted to market disruptions from technologies such as automated guided vehicles and point of sale scanners. However, T&L firms have lagged behind the broader business world in addressing the implications of big data.
Consumer-facing industries, from social media to grocery chains, were quick to adopt big data technologies and analytics. By utilising data, companies can gain insights on customer interests to then improve client experiences. Companies can derive value from their own data and/or purchase it from other sources. In fact, many make the bulk of their profits from repackaging and selling this high-level information to third parties fit.
Many medium-sized T&L firms (10-500M) having long-established contracts and have become complacent, despite industry innovations. However, customers are already seeking out consultants and advisors, internally and externally, to drive down cost. Their recommendations often identify quick savings through renegotiated or competing logistics contracts. Firms that aren’t fully leveraging their data and exploring differentiated data services are already on an eroding path.