Technology advancements in transport, logistics, and supply chain have paved the way for disruptive business models. Enter third-party logistics providers (3PL) like the Uber-inspired digital freight matching (DFM) services to disrupt logistics and supply chains worldwide.
App-based and on-demand trucking and freight services have received a lot of attention and investment beyond Silicon Valley, reshaping the supply chain environment – just as Uber had disrupted the public transport environment.
The digital freight mobile apps were developed to match the shippers’ demand for transportation when needed with available freight capacity.
The system facilitates a fast link between transportation and increasing pending loads. The driver receives an alert that there is a load for pick-up and can choose to accept the load if the price and timing is right.
On-demand freight matching services powered by mobile platforms cater for both long-haul transportation (over long distances taking days or weeks) and last-mile deliveries (from transportation hubs to final destinations), although the latter has more growth opportunity according to industry experts.
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This technology can have a huge impact on the supply chain’s transportation management system, resulting in cost savings, speedier deliveries, and improved service levels as well as greater customer satisfaction.
It remains to be seen how digital freight matching services will be able to sustain their offering and differentiate themselves in the marketplace.
Some factors to consider include the variety of extensive routes, geographic coverage, tracking and tracing capabilities, and the performance and quality of services offered. These come as tried-and-tested with traditional freight services and brokerages.
Overall, it’s relatively easy to see how digital freight matching (DFM) apps could become an industry standard for lightning-fast transportation efficiency and cost-effective load carrier services. It has become very important to keep up and to do business in the easiest, quickest and most cost effective way possible.
Click here to read more about the digital freight matching players in the international market.
Microsoft Dynamics AX Supply Chain Management (AX SCM) integrates modules catering for warehouse, transportation, inventory, and cost management into one powerful collaborative platform.