Photo: Thinkstock

Digital disruption (part 2): Analytics, analytics, analytics

Feb. 2, 2017
IoT, Big Data are the big drivers of success going forward

While self-driving trucks and Uber-for-freight startups get much of the buzz, Princeton Consultants CEO Steve Sashihara has one word of advice for fleet executives: analytics.

“You have to drive up your analytics capabilities,” he said, speaking on a recent Stifel Capital Markets conference call. “You're going to have start moving your organizational culture to be more data-driven in how you make decisions, and rely less on experience and gut-feelings. Given the low margins in our industry, this is not a competitive advantage—this is, basically, survival.”

In Princeton’s latest industry survey, Digital Disruption in Freight Transportation, the Internet of Things (IoT)—wirelessly connected real-time sensors for everything from freight to vehicles to personnel and facilities—and Big Data topped the list as the most likely and most impactful trends.

“These are two sides of the same coin,” Sashihara said. “This is where the action is.”

In the survey, 84% of respondents agreed that IoT will have moderate or large impact, and 85% said the same for big data, or the collection and analysis of external information.

And while the labels may be trendy, Sashihara contends analytics is driving “a bona fide revolution” in manufacturing, distribution, and transportation: “everything from how we price, how we move, how we optimize, where we locate.”

“Better information means the right resources in the right place at the right time,” he said. “That’s what the buyers are buying and the sellers are selling.”

Specifically, the Princeton survey identified nine areas of impact of the coming disruptive technologies, with highest rated being exceptions management, real-time optimization, and visibility into freight movement.

Direct spend on transportation and logistics in the U.S. is $1.45 trillion, with trucking alone shipping goods valued at $139 trillion, so the investment community sees “a lot of room” for investment in fresh ideas to make the industry more efficient, Sashihara suggests.

Interestingly, 56% of the transportation executives who took the survey agreed that digital disruption would create new winners and losers in the marketplace—but they’re not clear on how their own organizations will meet the challenges.

For existing players, the key to survival and success will be to master two types of analytics:

  • Analytics at Rest: Using data to model strategic problems and opportunities, to make strategic decisions, and to develop mid- and long-term plans for profitable growth
  • Analytics in Motion: Using data to optimize daily operational decisions, such as load planning, truck dispatch, and pricing

“I know that all of us have been using data for quite a while, but this is another level play,” he said. “We have to be a lot more data driven.”

About the Author

Kevin Jones 1 | Editor

Kevin Jones has an odd fascination with the supply chain. As editor of American Trucker, he focuses on the critical role owner-ops and small fleets play in the economy, locally and globally. And he likes big trucks.

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Leveraging telematics to get the most from insurance

Fleet owners are quickly adopting telematics as part of their risk mitigation strategy. Here’s why.

Reliable EV Charging Solution for Last-Mile Delivery Fleets

Selecting the right EV charging infrastructure and the right partner to best solve your needs are critical. Learn which solution PepsiCo is choosing to power their fleet and help...

Overcoming Common Roadblocks Associated with Fleet Electrification at Scale

Fleets in the United States, are increasingly transitioning from internal combustion engine vehicles to electric vehicles. While this shift presents challenges, there are strategies...

Report: The 2024 State of Heavy-Duty Repair

From capitalizing on the latest revenue trends to implementing strategic financial planning—this report serves as a roadmap for navigating the challenges and opportunities of ...