3 Emerging FreightTech Trends in 2023: The Future of Freight

3 Emerging FreightTech Trends in 2023: Over the past five years, global transporters have been continuously disrupted by unanticipated events, putting pressure on logistics providers to develop robust solutions for more resilient supply chains.

for navigating disruptions.

Consider thThe emergence of freight forwarding platforms, real-time visibility, and warehouse automation have provided shippers with optionse following three emerging supply chain technology trends for your organisation in 2023.

3 Emerging FreightTech Trends in 2023

Artificial intelligence

OpenAI launched ChatGPT (Chat Generative Pre-trained Transformer) in November 2022, demonstrating to business executives and logistics providers the development of AI technologies. In less than a minute, virtually error-free sales presentations, industry blogs, and training documents were generated.

According to a McKinsey report titled “Notes from the AI frontier: Applications and value of deep learning,” AI technologies can add 89% more value to transportation and logistics businesses than traditional analytics.

With the amount of data that data-centric solution providers have collected over the past few years, generative adversarial networks — systems that mimic abundant distributions of data — and reinforcement learning — systems that learn by trial and error — can support predictive maintenance, forecasting, and customer service management tools.

Through robotic process automation (RPA), which uses AI-provided insights from ingesting freight data, trade documents, and emails to create automated, rule-based duties for front- and back-office processes, AI is being effectively deployed in our industry.

In low-demand markets, logistics professionals will turn to RPA to streamline their current operations and generate more revenue with less time and human capital.

“2023 will be a year in which you must surpass the competition. You cannot rely on natural growth because it will not be as robust as it has been in the past few years. You must surpass the competition. “Speed is a means to this end,” said Hubtek’s managing director Joel McGinley. The Hubtek TABi product automates sales, operations, accounting, and customer service procedures.

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Paperless commerce

From bills of lading to commercial invoices, payroll, and customer accounting, this industry uses a substantial amount of paper.

Moving away from paper records not only enables the transportation industry to reduce its carbon footprint, but also enables businesses to collect more industry data, provide real-time visibility of shipments in transit, enhance internal operations, and lower costs.

MyCarrier, a platform for less-than-truckload transportation, estimates that the digitalization of manual processes could save logistics providers up to 2 percent of their freight management costs. If the entire industry eliminated these processes, global savings could reach $1.2 billion.

MyCarrier and Loadsure will collaborate to reduce the LTL claims procedure from weeks to hours.
For this reason, MyCarrier and 29 other transportation companies have collaborated to develop digital standards to eliminate paper from the LTL industry, which uses paper-based processes for 85 percent of its shipments.

The National Motor Freight Traffic Association’s Digital LTL Council collaborated with LTL provider RR Donnelley to digitise its manual operations, including rating, dispatching, monitoring, and documentation. Upon completion of the programme, RR Donnelley realised annual cost savings of $250,000 and a daily call volume reduction of 700-900 calls.

While paperless operations are promoted for domestic transportation, they are gaining traction internationally as well.

Electronic bills of lading could save global trade $6.5 million in direct costs and allow for more than $30 billion in new trade volume, according to a 2022 McKinsey study, as 40% of containerized trade transactions still rely on the transmission of paper records.

Supply chain financial management

In the same way that blockchain technology can improve paper-based processes, it can also improve the labor-intensive trade finance environment.

Utilising supply chain finance to increase working capital in order to generate new revenue or sales in emerging markets and products. Companies of all sizes, including behemoths such as Apple, Dell, Procter & Gamble, and Siemens, utilise fintech providers to broker these transactions between financial institutions worldwide.

The International Chamber of Commerce discovered that 66% of banks have a supply chain finance plan in place, following a 38% increase in this financing strategy globally from 2020 to 2021.

Incorporating supply chain finance solutions into your operations does not only create growth opportunities during periods of low demand; it also provides visibility into your financing network, reduces risk, enables rapid settlement, and enhances your relationships with your carrier vendors.