Survey: 1/4 Freight Decision Makers Say Advanced Lane Matching is the Most Impactful Tech for Industry's Future
The global supply chain depends on the crucial role of freight decision-makers, from forwarders to shippers and other logistics professionals. They provide the backbone for international trade, and work to ensure the seamless, efficient movement of goods.
But it’s certainly been an unpredictable few years for global logistics, with many challenges—from driver shortages to geopolitical disruptions creating cross-border friction and cost-pressure. In a report released this year by renowned economist and trade expert Dr. Rebecca Harding—sponsored by Amazon Freight—analysed the pressures facing supply chain decision-makers, and what it means for international trade and the future of freight.
Beginning with a survey of 202 freight decision-maker respondents, the ‘UK and DE Freight Trends in 2024 and Beyond’ examined how macro and microeconomic trends are shaping the future of freight supply chains, and how the industry is responding to these pressures. Here, we provide the rundown of what its conclusions mean for freight forwarders and logistics companies.
The key challenges to supply chain efficiency
Customs clearance, documentation, warehousing, and distribution are the key roles played by freight forwarders. Shippers and manufacturers put the ‘supply’ in the supply chain, while international bodies and national governments try to shape policy to control worldwide freight.
All of these actors have been witness to the deep and lasting ramifications of geopolitics and geo-economics on global supply chains. Taking just one example, trade between European and UK companies, shippers must now follow new rules of origin and documents of trade.
So, when asked about obstacles they experienced in 2023 amid these changing conditions, 31% of freight decision-makers cited cross-border movements. 50% of the respondents said customer experience had been impacted as a result. For all businesses surveyed, the average total budget cut was €986,000.
Crucially, 32% of respondents said they had struggled to keep up with technological changes, but they are also confident that tech will enable them to better manage logistics challenges. 25% cited advanced lane-matching, 22% identified the need for electric and hybrid vehicles, and 20% anticipated the benefits of AI.
How decision-makers invested to cope amid uncertain times
While rising costs, driver shortages, and the need to adopt new tech have put pressure on businesses of all sizes, it’s also true that freight decision-makers are changing their spending and investments to not just survive but drive efficiency overall.
When asked, close to a third (29%) see warehouse efficiency as the most viable option to boost customer satisfaction in 2024. But interestingly, nearly half (46%) of companies reduced their investment in advanced warehousing technology. Meanwhile, 31% of respondents in companies of varying sizes said freight software management was the best way to ensure growth and efficient operations. 36% chose to focus on sales performance to solve their logistical challenges.
Amid instability and rising costs, it’s easy to see why freight professionals are still focused on getting the most ROI, especially as their working capital is under threat. Even as AI presents key opportunities, training and hiring staff remains difficult, especially when there’s a clear need to hire and retain the right heavy goods vehicle (HGV) drivers to guard against an unstable market.
Beyond 2024: The road to decarbonisation
Tech uptake has not been consistent across the logistics industry because of two main factors: legacy processes and heavy regulations. Many systems used throughout the sector are still heavily manual, and in the face of complexity this leads to inaccuracies. Cross-border movement is a key example of this: when shippers struggle with the correct paperwork, technologies, systems, or barcodes, they have more difficulty making the crossing.
In terms of the next decade, advanced lane matching (25%) was seen by respondents as the tech with the biggest potential impact on freight. This tool involves the use of data and technology to generate optimal matches of backhaul movements with shipments, in order to improve the utilisation of assets in logistics, and support cost-effectiveness and sustainability initiatives.
On that point, freight decision-makers in large scale logistics understand the importance of climate change and ensuing regulations on the sector. As national governments and international organisations focus on the journey to net zero, 99% of respondents said they were bringing in sustainable measures to manage climate impact.
The importance of a collaborative network
Making the industry more sustainable, however, will take more than just tech innovations. As Dr. Harding argues in her analysis, rising costs impact small businesses the most, and these are the organisations who have to maintain growth and scale up. Even though the industry has proved to be resilient in an age characterised by change over stability, amid deeply intertwined supply chains what logistics companies need is greater collaboration within the industry through data-sharing, and engaging with governments and regulators.
For the development and adoption of freight technology, Amazon Freight is at the forefront of innovation, offering real-time shipment tracking, intermodal solutions, and transparent pricing using lane-match analysis for full-truckload (FTL) and less-than-truckload (LTL) shipments. All of this is boosted by its large partner network in Europe, and the innovations will continue to shape the future of freight.
Read the full report to get the whole story.