Evolution, revolution and value: 5 technologies shaping the transport industry

Transcription

1 Evolution, revolution and value: 5 technologies shaping the transport industry The impact of current and emerging technologies on the value of courier, mailing and logistics services A Crossflight White Paper

2 Introduction Technology is accelerating change. Over the last 25 years or so, the world has been transformed by the widespread use of digital technology and the non-stop march of the internet. From consumer electronic products to the most complex machines, digital technologies have become an essential part of life as we know it. Products and machines are designed with the aid of computer technology (CAD) as well as having computer technology embedded as a fundamental element providing functionality. In the developed world, entertainment is in reach of everyone s pocket with subscribed, on-demand streaming services able to deliver the entire catalogues of audio and video libraries to any connected device. Even broadcasting and communication - quite literally the airwaves themselves - have been digitised with satellite and terrestrial services. Almost no corner of business and commerce has escaped. Whether it s a job driving a desk in an office or machinery on the factory floor, digital technology is an enabler of things such as productivity and communication, delivery of real-time information and process control. In specific areas of the transportation sector such as logistics, 3PL and international express the influence of technology cannot be underestimated. Whether its freight aircraft flight control systems, road delivery vehicle monitoring and navigation, or processing and routing through transport hubs, technology is pivotal. Some technologies represent evolution. However, others are firmly marked out as revolutionary. In this guide we discuss five technologies that currently deliver value to customers or are likely to change the way that value is determined in the courier, mailing and logistics industry. Page 2

3 1. Server to server integration Server to server integration is a technology that enables computer servers, the powerful computers that provide network services and resources to the personal computing devices of network users, to exchange information. The Internet and cloud technology means that servers that have been integrated may be located in different cities, countries or continents. Multiple servers may be integrated with several machines exchanging information in a group. Secure data exchange may be one way or in both directions. From the perspective of software companies and online SaaS application providers, server to server integration enables information to be exchanged between different applications. For SaaS customers this means that existing business management systems can exchange data directly with the SaaS providers systems. As an example, a company may use an ERP application to manage its business process end-to-end. Integration enables the SaaS application to pull and push required data out of and into the ERP system. Data could include purchase order information, invoices and order history. Server to server integration is widely deployed and is delivering value to courier industry customers by reducing the time soaked up by administrative tasks. Primarily, the need to re-key data is eliminated. This improves accuracy 100% by eliminating copy-keying errors and enables staff that use the systems to spend more time on tasks that are of higher value to the business. These efficiency improvements ultimately yield a cost benefit. too. Page 3

4 2. Agile software development Agile software development is a philosophy and formally defined methodology for computer programming. The theory of agile development is enshrined in the Agile Manifesto which was published in Since then it has evolved to refine the practice and make sure it keeps in step with developments in other areas. Agile development describes three core practices: Test-Driven Development (TDD) - enables software quality and performance to be maintained Behaviour-Driven Development (BDD) ensures software is fit for the business purpose intended Continuous Delivery (CD) enables software to be continually updated with small changes as soon as possible rather than less frequent major upgrades The first of the twelve principles of the Agile Manifesto is: Our highest priority is to satisfy the customer through early and continuous delivery of valuable software. Courier companies with technology expertise that practice Agile Development are delivering value by making sure the quality of software used by customers is good. High quality has two facets: Software performance the ability to perform without glitches from bugs and to be upgraded quickly and efficiently to meet changes in the software environment or the changing needs of customers Functional performance the ability of software to deliver value by performing well against the criteria set out to define what customers need the business software to provide Page 4

5 3. Web portal Web portals are internet pages that deliver specific information to a user. The portal webpages may be expansive, self-contained websites, or a few pages linked from a company s main website. Web portals use secure login to prevent unauthorised access. Portals are in widespread use for both B2B and B2C purposes, usually to allow customers to access a range of specific self-service functions. This could be maintaining account information, or it could be transactional processes such as obtaining costings and quotes or placing confirmed orders. In tech jargon customer portals are often a mashup, condensing and converging key information. Assembling many different data points into a few key pages in this way is an extremely useful application of technology. It brings together information in a way that can be targeted to the specific requirement of user groups, such as customers, or account managers. Courier, mailing and logistics businesses currently making the best use of customer portals are delivering value through benefits such as: Easing the creation of documentation Enabling cost control Centralising management Page 5

6 4. Unmanned Aerial Vehicles Unmanned Aerial Vehicles (UAVs) or drones are, as the name suggests, aircraft without pilots on-board. UAVs may be flown remotely by pilots using radio control technology. Military applications enable drones to be flown anywhere in the world by a pilot anywhere else in the world using satellite links. Commercial remote controlled drones are used as camera platforms for the film and TV industry as well as low-cost aerial surveying. Commercial use is governed by aviation regulations, with safety and privacy as key considerations. Autonomous UAVs integrate drone flight control with GPS systems to provide the ability for the drone to navigate to any desired location without real-time piloting. Amazon Prime Air is the division of the online retailer currently testing autonomous UAVs (or parcelcopters ) as potential delivery vehicles for packages of less than 5 pounds in weight, which comprise 86% of Amazon shipments. Google is also known to be developing an advanced delivery drone capability and Domino s Pizza Redevelopment and New Knowledge division has also expressed an interest in the technology. UAVs for logistical purposes offer a tantalising glimpse of the future of the transportation sector. Drone deliveries and collections raise the prospect of highly efficient services with collections measured in minutes and hours for domestic services. However, a number of barriers remain. Regulatory limitations are a key barrier, with aviation safety, preventing risks to people and property on the ground and privacy difficult issues that need to be resolved. With current battery performance and weight limitations, range is also limited; however, research is ongoing with experts suggesting big breakthroughs in the next 5-10 years. Progressive courier companies will continue to keep a close eye on drone development to see whether this technology can deliver customer value. For some, it may seem a bit sci-fi or over indulgent tech for tech s sake, but it cannot be ignored. Page 6

7 5. Driverless vehicles Autonomous vehicles are road vehicles that put the drive train under the control of navigation and sensors to enable the vehicle to safely traverse the public road network. This enables them to follow a route or go to specific destinations without risk to other road users, pedestrians, animals or property. Google started its self-driving car project in 2009, and just 18 months later its prototype autonomous vehicles had completed 100,000 miles on public roads. In 2012, co-founder Sergey Brin promised Google s self-driving cars would be available for everyone within five years. In parallel with this other companies are working on development of driverless commercial vehicles. The UK allows autonomous vehicles on the road, along with California, Florida and Nevada which all changed laws to facilitate the new technology. Domino s Pizza actually announced it had launched a fleet of driverless pizza delivery vehicles on 1st April 2015! Experts say the technology will drive development of a completely new model for freight traffic. In % of goods were transported by road across Europe. European roads are becoming over-congested because primary road networks have not grown to meet demand and goods traffic is set to increase substantially in the coming years. Consequently, businesses stand to benefit in a multitude of ways. Smoother traffic flow will make delivery and collection of goods more predictable and scheduling simple. Maintenance of a steady speed for until refuelling reduces consumption and carbon emissions while enabling longer distances to be covered. If vehicles are manned, they could be transport managers that carry out other tasks while traveling. In the vision developed by Daimler, a driver will have access to a centre console in the style of an office workstation and will be able to use a tablet computer for tasks such as sending invoices or other productivity, administrative or management tasks. Autonomous vehicles are set to be a key factor in determining the value customers obtain from providers of road transport services. The most forward thinking courier companies should already have driverless vehicle technology on their business development roadmaps, and this is likely to arrive within the next 5 years. Page 7

8 Why choose Crossflight as your international courier partner? In this guide we ve discussed five technologies currently delivering value, or likely to change the way value is determined in the courier industry. Crossflight is currently using those that are available now. For those still in development, you can be sure we are keeping a close watch to see how they can be factored into our value proposition. Either as a direct consequence or working alongside technology, Crossflight services offer a range of benefits: Consistently delivering value while remaining competitive Free consultancy, aimed at understanding customer needs and designing a solution Proactive monitoring, management and reporting of the fine detail of every shipment Get your free consultation today The most important role of technology is to deliver increased customer value. Crossflight delivers better value because we have seized the opportunity to leverage technology. You can find out more about Crossflight international courier solutions for your business by booking a free consultation today. Simply call or visit us at and send us a request via the contact form. Delivering value from technology with automation, integration and intelligent routing High quality, pro-active service with personal account management and no call centre Independent, whole of market approach to routing through the best delivery agents Partnership approach continually striving to build enduring long term business relationships References and further reading Agile Manifesto Inside Google s Secret Drone-Delivery Program Domino s Rolls Out Driverless Delivery Vehicles Driverless vehicles: The end of the road for the trucker? Page 8

9 About Crossflight Developing and evolving high quality solutions since 1987 International Express Courier is at the heart of what we have done since The business is privately owned and operated and has grown steadily as it has organically built and retained a stable customer base that chooses to partner with Crossflight. Over the years we have developed considerable capabilities in mailing and logistics. As a result of our close proximity to London Heathrow, Crossflight is able to provide exceptional responsiveness to requirements for international courier services to customers in London and beyond the M25 into the Home Counties. Our Birmingham warehousing facility is an ideally located geographic hub for our UK-wide logistics and fulfilment services. Crossflight serves a clear market. This is identified as businesses for which other carriers, smaller and larger than Crossflight, have proved to be unsatisfactory providers of carrier services. Crossflight overcomes the chief source of this dissatisfaction by providing a full range of scalable capability wrapped with high levels of personal service. Our ability to leverage technology also sets us apart from other mid-market carriers. This is not just to benefit our business we use it to help our customers become more efficient. Our in-house technology team are experts at integrating customer systems with ours, including ERP and e-commerce websites