Freight Management Advances as Uberization Comes Into Play

SEKTÖRDEN HABERLER | Eklenme Tarihi : 05.11.2019

Freight management goes digital to overcome the capacity crunch. From the early 2000s until the present, a new model of consumption has been gaining momentum. Generally it’s so-called “sharing economy”. In contrast to the traditional business model, it connects customers and suppliers through digital platforms providing shared access to skills, assets, and services.

Although the sharing economy has been around for more than a decade, it is only today that uberization of logistics is taking place. The major game-changers behind global supply chain management go beyond e-commerce expansion.

The model has proved effective for B2C businesses like Airbnb and car2go, and now it is slowly disrupting the asset-heavy B2B environment. A number of agricultural companies are making use of rental platforms as Trringo, an India-based online service providing farm equipment for rent. Construction companies, in turn, exploit the same approach renting out machinery 70% of which would usually remain idle.

The problem of unused resources is common for the supply chain and logistics industry as well. The American Transportation Research Institute reports 20% of miles are run empty, which totals over 65 billion empty miles per year. Obviously, sharing economy is able to facilitate the global supply chain management and reduce financial burdens. In logistics, it is also referred to as uberization.

Simply put, uberization of logistics acts as a matchmaker between supply and demand enabling shippers to select carriers online without intermediaries and long-term lease contracts. The end goal of uberization is to boost transport efficiency and lessen logistics operating costs.

Source: https://innovecs.com/blog/freight-management-uberization/##targetText=In%20logistics%2C%20it%20is%20also,and%20long%2Dterm%20lease%20contracts

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