SaaS
May 14, 2024

Digital visibility: the key to profitability in road transport - Tennders

Every day, shippers or agents are left without a scheduled transport due to unforeseen events or last-minute problems.

Digital visibility: the key to profitability in road transport - Tennders

Every day, shippers or agents are left without a scheduled transport due to unforeseen events or last-minute problems. Therefore, finding and accessing these urgent services is becoming more and more essential.

Even large companies with the capacity to respond to moments of operational difficulty need fast and reliable logistics solutions in these situations. For this reason, digital visibility and Internet presence are key conditions for new business opportunities in the road transport sector.

While risks in the global supply chain are beginning to outweigh the benefits, digital image management can reverse the negative trend. And yes, reverse the trend even at present. According to a recent Harvard Business Review study, companies with the most contacts in China when the Covid 19 closures began in the early 2020s could predict the congestion on major trade routes and prepare their responses. However, smaller companies focused on third-party logistics or freight forwarders reacted more slowly and suffered more from the consequences.

Lack of foresight and digital visibility increased the risks for many companies in the international market. However, digital market information and visibility are not only in the hands of large companies. Small companies only need to access and search for market information with the right tools and partners.  

In Spain, the road freight transport sector comprises small companies with one, two or three trucks. These self-employed people face many difficulties, especially harsh in the last two years. However, joining a network allows them to find visibility into the customers they are looking for and access new, more profitable and efficient markets.

This market image also applies in other countries such as Poland. In fact, the Polish company Transport i Logistyka Polska asked transport users about the importance of digitalisation. 42% admitted that their main goal is to implement digital systems within 5 years. However, technological changes highlight the need for small operators to act, and 5 years might be too late for them.  

Although it may seem otherwise due to recent setbacks like Covid 19 and fuel price increases, there is a boom in the European transport sector, with profitability rising. The road to digital change is already being paved, and some small hauliers will not be able to drive it if they do not meet digitisation requirements.

We live in the age of big data, analytics and networked collaboration. So it is no surprise to anyone that the pressure for change will only increase, so we will see more and more potential customers making it an essential requirement for doing business.

By opening up to large suppliers, small and medium-sized logistics partners will benefit from meeting the digitisation standards: to improve workflows and collaborate with the most profitable customers.