New Trucking Technologies Provide Significant Operating Cost Reductions

For carriers in the LTL (less-than-truckload) industry, new trucking technologies are about to provide a significant advantage. Technology, which has disrupted just about every other industry, is finally gaining a foothold in the trucking industry. The evolution has been slow, but steady — until receiving a major push from the COVID-19 pandemic throughout 2020.

In a Transformation Conference webinar — “LTL 2025: Future of LTL Operations and How to Prepare for It” — hosted by Axele’s founder, Optym, executives from major carriers discussed their efforts and expectations with regard to trucking technologies.

The conference was moderated by Optym CEO Ravi Ahuja, and featured a keynote presentation from Nate D. Wells III, Senior Vice President, Operation Planning & Engineering, XPO Logistics.

Also offering their insight during a wide-ranging Q&A session were Webb Estes VP, Process Improvement, Estes Express; Jack Levis, former Senior Director, Process Planning, UPS; Charlie Prickett, Chief Operating Officer, AAA Cooper; Patrick Sugar VP, Linehaul & Engineering, Saia; and Scott Ware, Chief Network Officer, YRC Worldwide.

Key Points on New Trucking Technologies

Key takeaways from the conference, which can be seen in full here, include:

Carriers are finding that operating costs can be reduced by 3-5% through the implementation of state-of-the-art software in areas such as Pickup & Delivery, Linehaul, and Dock & Yards, according to Wells
Based on discussions with executives from leading carriers, while the pace of technology implementation is getting better, it needs to speed up further, according to Ahuja.
Operational efficiencies will be gained by improvements in data infrastructure, data analytics, automation and route planning optimization, according to Wells.
In pickup and delivery, better “route optimization” can create a 5% reduction in cost. Traditional but inefficient approaches, such as zip-code based routing, will be eliminated as both technology and the industry’s mentality continue to evolve.
Being able to optimize and maximize loads in the line-haul space creates what looks like a small improvement — 2-4% — but over the thousands of miles significant savings add up, says Webb.
Future of trucking is “and,” says Levis. Timely, safely and cost-effectively is the new expectation from shippers. Carriers need four things to truly drive improvements: 1.) High definition data that tells carriers where things are headed tomorrow; 2.) Good operations technology to let front-line users; 3.) Advanced optimization technology to drive 6-12% efficiencies; 4.) and leadership that understands change management.