According to the latest report by project44 and Transport Intelligence (Ti), for one in four shippers, the most important factor when choosing a carrier is reducing operating costs. More than 20 percent of companies indicate that past delivery punctuality is key when selecting freight services. The third most important selection criterion proved to be real-time visibility, i.e., Real-Time Visibility (RTV) software.
For as many as 15 percent of respondents, the ability to monitor shipments can be the deciding factor in choosing a carrier. The report “Future-Proofing the Supply Chain through Real-Time Visibility”* shows that visibility software is considered more important than customer service, security, geographic reach, and sustainability policies. (The study involved 234 shippers, including retailers and manufacturers).
Variable demand, uncertain supply, capacity issues, and transport delays that occurred during the Covid-19 pandemic caused significant difficulties in supply chains. Despite this, as the project44 report points out, only 20 percent of shippers declare that they have fully transparent insight into their supply network across all regions they serve. Most companies have only partial visibility of their shipments. Meanwhile, full access to real-time monitoring brings a number of benefits.
– Real-time visibility is a means to an end, not an end in itself. It is also a key element of supply chain optimization in many dimensions. Visibility software helps shippers reduce costs, improve operational efficiency, and achieve capacity at higher service levels. At the same time, it allows for data-driven supply chain analytics that contribute to better time efficiency and delivery predictability. Consequently, visibility also supports customer service quality and helps reduce harmful emissions in transport – emphasizes Piotr Michoński, Regional Account Director CEE at project44.
The study results also indicate that carriers who are unable to provide shippers with Real-Time Visibility (RTV) software throughout the entire shipment lifecycle may find themselves in a difficult competitive position in the future. More than half of shippers (57.4 percent) consider visibility a prerequisite for a carrier to qualify for a tender. For nearly 41 percent of shippers, real-time visibility is an attractive option. The greatest importance is attached to Real-Time Visibility (RTV) by carriers using air transport, followed by ocean and road transport.
– The Covid-19 pandemic exposed weaknesses in global supply chains. As a result, the importance of shipment monitoring in the logistics industry has increased. Most shippers realize that visibility software is a tool that allows them to minimize the effects of current difficulties and gain a competitive advantage. Given the growing demand for Real-Time Visibility (RTV) from shippers, carriers who have the capabilities to handle a fully transparent global supply network can easily stand out from the competition – adds Piotr Michoński from project44.
The full report is available at the link.
More about project44:
Project44 is a provider of an advanced visibility platform for shippers and logistics service providers. Project44 connects, automates, and provides insight into key transport processes to accelerate analysis and reduce the time needed to turn that information into action. Connected to thousands of carriers worldwide and having comprehensive coverage for all GPS and telematics devices available on the market, project44 supports all types of transport and shipping, including air freight, parcels, last-mile delivery, FTL and LTL loads, trucking, rail, intermodal, and ocean transport. In 2021, project44 was recognized as a leader among real-time transport visibility providers in Gartner’s Magic Quadrant report. The company is also #1 on the FreightTech 25 list.
For more information, visit project44.com.
More about the Ti Research Institute:
Transport Intelligence is one of the world’s leading providers of expert research and analysis dedicated to the global logistics industry. Leveraging the expertise of professionals with many years of experience in the road freight and logistics industry, Transport Intelligence has developed a range of market-leading products, reports, profiles, and online services used by many of the world’s logistics service providers, consulting firms, banks, and users of logistics services.