Freight as a Service fated to be the next big thing

DHLFreight as a Service (FaaS) could be the next key transformative technology trend, according to a recent B2B technology survey.

The survey of 455 companies across nine verticals, was conducted by ABI Research and has the catchy title of “ABI Research’s Industry Survey: Transformative Technology Adoption and Attitude – Logistics report”.

It found that 41 percent of logistics respondents view Freight as a Service (FaaS) as a key transformative technology trend.

The rapid growth of e-commerce requires new transport modes such as delivery drones and robots, direct-to-car, and direct-to-home deliveries. FaaS will represent 30 percent or more than $900 billion of total goods transportation revenues by 2030.

Turning freight transport into a service allows cargo capacity to be ordered seamlessly and spontaneously in open marketplaces which will optimise capacity use and reduce costs.

Susan Beardslee, Senior Analyst at ABI Research said that only two per cent of logistics respondents appear to comprehend the disruptive capabilities of ETE Supply Chain Visibility.

“However transparency across multiple modes and suppliers drive material ROI through reduced inventory, lead-time, and losses, as well as enhanced service levels through responses to demand surges and external variables.”

ABI Research found logistics firms are adding wearable technologies such as Apple watches, GoPro’s and Google Glasses, with 61 per cent adopting as part of their technology innovation strategy.

AI platforms are beginning to enjoy growing adoption rates. Data analytics is starting to “cross the chasm” along with the traditional role of monitoring with both leveraging the emerging capabilities of AI.

Real time analytics of vast, evolving, and unstructured data are beginning to transform the supply chain.