It’s no secret that today’s freight marketplace is extremely inefficient, with some 20 billion empty miles per year traveled, according to some sources.
Is mobile-based freight brokering (so-called “Uber for Trucking”) the answer? A recent Frost and Sullivan analysis, reported at length this month by Supply & Demand Chain Executive, implies that it’s on the verge of transforming the industry.
Per Frost and Sullivan, such mobile solutions will soon “combine features from traditional freight brokering, load boards and Web based freight brokering into one efficient solution for drivers and fleets.” As a result, they’re expected to grow from a $100 million business used exclusively by small fleets into a $26.4 billion business serving small, mid-sized and large fleets (and fully integrated with transportation management systems) by 2025. That’s a big deal.
Will that lead to the end of traditional freight brokerage? Of course not. Their partnerships, relationships and record of performance are simply too strong. But if the Uber-style service grows as Frost and Sullivan expects, it could lead to:
- Dramatically improved asset/resource allocation, cutting today’s 8-15 percent empty-load time dramatically
- Improved shipping times
- Reduced carbon footprints
- Automated back-office processes
- Faster payment times for drivers
Sounds like something all supply chain professionals can get behind.