SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

TMC NEWS

TMCNET eNEWSLETTER SIGNUP

Why Tech Could Shakeup the $8.1 Trillion Global Logistics Industry
[November 29, 2018]

Why Tech Could Shakeup the $8.1 Trillion Global Logistics Industry


NEW YORK, November 29, 2018 /PRNewswire/ --

Legacy systems are a significant problem for the logistics industry. Despite the industry being worth more than $8.1 trillion, companies continue to rely on outdated platforms to manage their operations. These systems are inefficient and costing the industry. Innovation is a key driver of future growth, and many companies are already working on new technologies to replace existing legacy systems. Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk famously blamed his company's failure to produce and deliver the Model 3 car on the fact that they had gone "from production hell to delivery logistics hell." Alphabet Inc. (NASDAQ:GOOGL) has bet big on this problem, investing $185 million through a Series C round into trucking startup Convoy, which valued the company at $1 billion. Third-party logistics (3PLs) company J. B. Hunt Transport Services Inc. (NASDAQ:JBHT) invested $500 million into developing an internal cloud-based platform for their data, while competitor C.H. Robinson Worldwide Inc. (NASDAQ:CHRW) is focused on improving their Navisphere software, which relies on predictive analytics. Meanwhile, LiteLink Technologies Inc. (CSE:LLT) (OTC:LLNKF) is set to deploy its innovative 1Shift platform, which aims to solve the biggest logistical problems faced by shippers and carriers.

Logistics Companies Overlooked Tech - Now It's Costing Them 

Technology has always existed in the logistics industry, but many companies chose to overlook it. That decision has resulted in severely outdated legacy systems being the norm in the industry. With costs on the rise, 3PLs have no choice but to upgrade their systems. J.B. Hunt Transport Services Inc. warned in 2017 that costs were set to increase by 10% as a result of regulations, a driver shortage, fuel prices, and shrinking margins.

Existing legacy systems are expected to handle everything from managing driver availability, route scheduling, payments, regulatory oversight, shipment tracking, and delivery. Fragmentation poses a challenge in this industry, with the top four companies commanding only 15% of the overall market share. In the United States, a large portion of logistics companies is smaller carriers with six or fewer trucks. Fragmentation of the industry, combined with rising costs, are two problems that legacy systems cannot cope with at scale. These systems are highly inefficient, costly to maintain, and are counterproductive to growth.

Empty trucks comprise nearly 20% of all miles driven, while 36% of non-empty miles are unoptimized. This wastage is not only avoidable, but it costs companies billions every year. LiteLink Technologies Inc. (CSE:LLT) (OTC:LLNKF) is looking to solve this problem through its new 1Shift platform. 1Shift offers 3PLs a more efficient logistics process, by leveraging the power of data to enhance supply chain procurement, sales and operational planning, and customer service. These enhancements should affect shipping routes, delivery timeframes, driver availability, paperwork, and offer reliable tracking for trucks. As the platform adapts, it will optimize existing routes and provide improvements that could save logistics companies billions.

We've already seen advancements in just in time deliveries, connectivity through the Internet of Things (IoT), warehouses that utilize robotics, and pedictive analytics similar to C.H. Robinson Worldwide Inc.'s Navisphere platform. There is legitimate interest in the logistics industry from large companies in the tech sector. Alphabet Inc.'s investment wing, Capital G, raised $150 million through Series C funding for trucking startup Convoy, which valued the company at $1 billion.



Software as the Solution  

The logistics industry is made up of shippers, carriers, and brokers (3PLs). Shippers are companies with products, carriers supply the labor and trucks, and 3PLs act as the middleman that facilitates the relationship between the two. This is how the industry has existed for decades.


A smaller broker can typically schedule between three and four shipments per day due to the large amount of inefficiency that exists in this industry. Tesla Inc. is looking to solve this problem through autonomous trucks. However, the $150,000-$180,000 price - more than double the cost of a diesel semi - may be too expensive for smaller carriers to afford. Additionally, the company's inability to produce its electric cars at scale is an issue that they will need to overcome first. There's also the regulator problem. Regulations for autonomous vehicles do not exist at the federal level and will need to be created before autonomous vehicle technology can receive the green light from governments and insurance companies.

C.H. Robinson Worldwide Inc and J. B. Hunt Transport Services Inc. are two large 3PLs that have the resources to develop internal solutions due to their combined market capitalizations of $24 billion. If most smaller brokers are unable to afford a Tesla semi, then they do not have enough capital to build their own internal systems. In an industry that's worth more than $8 trillion, smaller 3PLs will need internal software like LiteLink Technologies Inc.'s (CSE:LLT) (OTC:LLNKF) 1Shift to survive.

LiteLink Technologies Inc. (CSE:LLT) (OTC:LLNKF) has already built a platform that directly solves these problems through data-driven work task efficiency improvements. 1Shift streamlines the broker process by providing carriers with a marketplace to find new jobs, reducing overall downtime and the likelihood that a truck sits empty. It accomplishes this through an artificial intelligence system that analyzes and optimizes data points. For shippers, 1Shift simplifies the process of finding drivers, allows shippers to use GPS to track shipments accurately, reduces paperwork, eliminates human error, and the availability of real-time data makes it a reliable tool for dispute resolution.

By focusing on internal efficiency, the platform should earn the trust of all three parties in the industry. Shippers and carriers will benefit from the cost-savings, while 3PLs should reduce wastage and improve the efficiency of their scheduling systems and routes.

Companies Innovating the Logistics Industry: 

Tesla Inc. (NASDAQ:TSLA): Tesla Inc. is the world's leading manufacturer of electric vehicles. Their product line includes the Model S, Model 3, Model X, and Roadster. The company revealed that they are interested in creating a Tesla semi truck, but have yet to release any concrete details regarding the trucks availability.

Alphabet Inc. (NASDAQ:GOOGL): Alphabet Inc. is the parent company of Google. In Q3 2018, the company invested $150 million into logistics startup Convoy through their investment wing Capital G.

J. B. Hunt Transport Services Inc. (NASDAQ:JBHT): J.B. Hunt Transport Services Inc. is one of the largest 3PLs in the world. In 2017, their gross logistics revenue was $6.8 billion. The company invested $500 million into developing an internal cloud-based logistics system that should allow them to streamline their processes.

C.H. Robinson Worldwide Inc. (NASDAQ:CHRW): C.H. Robinson Worldwide Inc. is the world's largest 3PL company. In 2017, their gross logistics revenue was $14.8 billion. The company's Navisphere platform is designed to improve logistical efficiency to shippers and carriers.

For a free research report on LiteLink Technologies Inc. (CSE:LLT) (OTC:LLNKF), visit Microsmallcap.com.

Disclaimer: Microsmallcap.com (MSC) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with MSC or any company mentioned herein. The commentary, views and opinions expressed in this release by MSC are solely those of MSC and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable MSC and FNM for any investment decisions by their readers or subscribers. MSC and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author (MSC), and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author (MSC) has not independently verified or otherwise investigated all such information. None of the Author, MSC, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer's filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer's securities, including, but not limited to, the complete loss of your investment. FNM was not compensated by any public company mentioned herein to disseminate this press release but was compensated forty four hundred dollars by MSC, a non-affiliated third party to distribute this release on behalf of LiteLink Technologies Inc.

FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MSC and FNM undertake no obligation to update such statements.

Media Contact:
FN Media Group, LLC
info@financialnewsmedia.com
+1(561)325-8757

SOURCE Microsmallcap.com


[ Back To TMCnet.com's Homepage ]







Technology Marketing Corporation

35 Nutmeg Drive Suite 340, Trumbull, Connecticut 06611 USA
Ph: 800-243-6002, 203-852-6800
Fx: 203-866-3326

General comments: tmc@tmcnet.com.
Comments about this site: webmaster@tmcnet.com.

STAY CURRENT YOUR WAY

© 2018 Technology Marketing Corporation. All rights reserved | Privacy Policy