According to a recent survey by Price Waterhouse Coopers, only 28% of the industry can claim a high level of digitisation today.
A research paper, "2017 Commercial Transportation Trends" produced by Price Waterhouse Coopers' (PwC) has identified the threat to established transportation companies is from new competitors that embrace new technologies and offer new services to keep up with their customers. In particular, established, high-asset businesses, "can no longer expect to be insulated from competition" it underlines.
Yet, according to a recent survey by PwC, only 28% of the industry can claim a high level of digitisation today.
Transportation companies appear to be hesitant about adopting more advanced technologies for a number of internal reasons including the lack of a digital culture, privacy concerns, and cost.
One common refrain from these players, PwC notes, is that they don’t need to invest in new systems because their traditional rivals don’t and secondly, that clients are not demanding sophisticated technology.
However, such assumptions about competitors and customers are at serious odds with current and future trends, the research paper argues.
On the former, as the industry undergoes transformation, traditional rivals will no longer be the sole or even the most threatening competition. Indeed, it will become more difficult to promptly recognise those vying for market share because they will emerge from outside the industry and target only portions of the commercial transportation value chain.
With regard to customers, it highlights a “large and growing” technological gap with transporters. The paper concludes that commercial transportation companies are heading towards one of two starkly different futures, depending on their response to new technologies.
The choice is clear. Integrating technology within your transportation business, whether it is vehicle tracking, telematics or defect reporting, will be fundamental in staying ahead of your competitors.