Dedicated to improving manufacturing efficiency

DHL research shows 75 per cent of companies believe investment in ground transportation will directly support their company growth

DHL, a world leading logistics company, today launched its latest research report on ground transportation logistics. The report reveals that the fast-paced evolution underway in the sector is changing the way that shippers think when purchasing a transportation solution. The global survey of transport buyers and operations professionals found that 83 per cent of businesses are willing to pay more for better and value-added services as long as they provide a measurable return on their investment.


“The logistics transport evolution: the road ahead” is a report by DHL Supply Chain, using data from research by Lieberman Research Worldwide, LLC (LRW) that was commissioned by DHL to identify the factors that are impacting ground transportation logistics and how industry is adapting to the new frontier of solutions available. The report found that across sectors and regions, companies are increasingly viewing ground transportation as being more than a tactical commodity, with 71 per cent now considering it to be a strategic component of their businesses.

 

Companies agree there is a direct correlation between ground transportation and business performance with three quarters (75 per cent) believing investing time and resources in ground transportation will directly help their company sales.

 

Javier Bilbao, global transport lead & CEO Latin America, DHL Supply Chain says: “Transport is undoubtedly a critical aspect of the global business environment, and these findings indicate that companies across sectors and markets are now recognizing its strategic value. We undertook this study to gain an insight into exactly what companies expect from their transportation service providers, both today and tomorrow. Our research has shown us that customers are increasingly looking for complete solutions with a global reach as they have the capability to solve a wide range of transportation issues and requirements.”

 

Global shifts in the business environment were identified as disrupting the ground transportation landscape. In particular, the exponential growth of e-commerce and its implications on service was identified by 65 per cent of companies as having a significant impact on their supply chain in the next 1-2 years.

 

Bilbao added: “Echoing the findings of our digitalization research, technology will be central to navigating this new era for ground transportation. The capability of AI and data analytics to manage the order profile and shipping patterns of customers’ increasingly complex and demanding operating models while optimizing cost and service, means that they are now viewed as essential services, rather than added benefits.” 

 

Although these changing dynamics are being witnessed across regions, variations can also be identified depending on the maturity of the market and the demands placed on shippers from their consumer base. In Latin America, the priority consideration in selecting a ground transportation provider is on time delivery while in Europe, where the market is more mature, optimization of networks is the key focus for shippers.

 

Broader societal factors were also highlighted as presenting associated challenges, with 61% of companies referencing the increase in urbanization as a factor that will significantly impact their future business. Technology and its ability to help manage this complex environment is increasingly seen as a standard requirement of 3PLs: more than two thirds (67 per cent) of companies believe that big data analytics and artificial intelligence (AI) are services that are essential for 3PLs to offer their shipper customers.

 

You can find the full insights into what companies are expecting from their transportation providers by downloading the report here.  

Related Articles

DHL Supply Chain invests £90 million in its UK fleet to support the growth of the network

DHL Supply Chain, market leader in contract logistics and part of Deutsche Post DHL Group, has today announced a significant fleet…

Vibrant transport sector offset by 432 per cent increase in company failures, new research finds

New end of year figures released in the quarterly Creditsafe Watchdog Report show a bumper month across financial indicators for the…

Businesses must urgently solve their e-commerce supply chain

DHL Supply Chain, leader in contract logistics, has launched its latest research report on the evolution of e-commerce supply chains. The…

Supply chain of the future requires a strategic balance of technology and human support, new research from Coyote Logistics reports

As technology continues to transform the workforce and logistics professionals navigate a rapidly changing supply chain, Coyote Logistics…

15 per cent of HGV driver vacancies cannot be filled

Logistics businesses anticipate that 15 per cent of their current HGV driver vacancies will not be filled due to the nationwide skills…

Only 30 per cent of LGV drivers feel valued, finds new Talent in Logistics research

According to a recent survey by Talent in Logistics, just 30 per cent of LGV drivers in the UK feel valued. The driver engagement research…