Technological Factors in Trucking

Technological Factors in Trucking

As trucking companies are looking for the latest advantage, they are stepping up their use of rapidly improving technology, particularly wireless technology. The aim of the increased use of information and telecommunications technology is operational efficiency. Operational efficiency is a critical business requirement aimed at shaving company costs, increasing company reach and doing more with the same resources.

Trucking is now the midst of a radical transformation. Led by the large industry leaders, the trucking industry now utilizes many forms of technology, such as cellular phones in trucks, email communication for both management and hourly employees, RF (transponder) communications to transmit data from moving trucks at both toll booths and weigh stations, hand-held wireless technology devices for drivers to record their pick-ups and deliveries, GPS tracking technology that is linked to interactive websites offering real-time shipment information, dispatching software for pick-up and delivery operations, as well as data collection terminals on the docks for recording facility production. Twenty years ago, production figures for the dock, drop yard and drivers on the street were all manually recorded with paper and pencil. Today, you cannot stay in business unless you keep up with technological change.

GPS technology in particular shows promise for future uses by the trucking industry. Qualcomm, which supplies satellite tracking and messaging services to more than 300,000 trucks across North America, is testing GPS truck-trailer locks that would allow cargo to be unloaded only at the correct location. GPS is really just the occasion for a link between truck and company that is constantly being exploited in ways that are unexpected. Truck drivers may use GPS technology to have part of their pay zapped to special cash cards as soon as they pick up a load. In this way, the driver’s miscellaneous expenses can be paid by the load itself.

Today’s IT systems convey GPS locations of dispersed company trucks, space available on each trailer, appointment and closing times for customers, maintenance records and current operating condition of trucks, hours of service logs for drivers and a multitude of other data that give managers a broad overview that helps to facilitate decision-making in dynamic situations. The internet is used by many customers for all of their communications with trucking companies. Rate quotes are obtained, pick-ups and deliveries are scheduled, damage claims are filed, shipments are traced, invoices are received and bills are paid, all using web or email-based technology.
For carriers, software suites are available that combine GPS tracking, routing, dispatch and on-line freight payment. There are several sources for this type of software suite. These systems can be used to optimize freight lanes and routes for an entire fleet, as well as develop map-based directions for drivers and follow vehicle movements. Combined with the suite’s dispatch function, the logistics module provides information to help fleets assign routes, drivers and vehicles for maximum productivity.

Shippers can now feed P.O. numbers electronically into online TMS applications that convert the purchase orders into optimized shipments, perform tenders to competing carriers, schedule pick-ups, provide shipment tracking/proof of delivery, handle all freight payment responsibilities and supply the customer and carriers with customized reports.

Currently, market forces are spurring increased technology in the trucking industry, as competition accelerates between the largest trucking companies to develop the best technology infrastructure, most recently through aggressive use of wireless technology. The market leaders are forcing the rest of the industry to follow their lead, or risk becoming obsolete.