I recently stumbled upon an article that, despite being a couple of months old, still resonates profoundly with the current state and future of the trucking industry. The piece, which you can read here, discusses Truckstop's acquisition of FreightFriend, aiming to streamline and intelligently enhance the freight matching process with trucks. The implications of this are potentially transformative, signaling that improvements in margins and profitability might be on the horizon.
However, this got me thinking - in an era where technology is rapidly evolving and integrating into every facet of our lives, how else could advancements, particularly in Artificial Intelligence (AI), pave the way for better margins and profitability in the trucking industry? AI, with its remarkable ability to analyze, learn, and optimize various processes, is not just a futuristic concept but a present-day tool that is reshaping industries, including trucking.
In this blog, we'll navigate through the expansive world of AI, recapping its potential to enhance driver performance, diving deep in how it can optimize operational processes, as well as an introduction of freight discovery and matching. Whether you're a seasoned expert in the field or a curious newcomer, AI is becoming an invaluable tool that can revolutionize your fleet.
AI Dash Cams: A Simple Step to Smarter Trucking
Did you know that adding AI to your trucks can be as easy as installing a new dash cam? That's right! AI dash cams do a lot more than just record the road. They can actually help understand how safely your drivers are operating. If you're curious about how AI dash cams work or their benefits, we've got a whole blog post about it! You can read it here to learn all about how our dash cams make a big difference in trucking.
Also here's something interesting: even though AI dash cams are super helpful, not all trucking companies are using dash cams, let alone AI powered ones. In fact, only 44% of fleets use dash cams right now. That means there's a big chance for lots of fleets to start using this cool tech to help their drivers and improve their work!
Boosting Operational Efficiency with AI
Save money or make more money - it's a classic saying that holds a lot of truth, especially in the trucking industry. Let’s dive into how becoming operationally efficient with the help of AI can save fleets a significant amount of money.
Getting Organized with a TMS
Uber recently launched Insights AI in their Transportation Management System (TMS), which looks like it could be a game-changer for shippers. But let’s step back for a moment and consider the foundational step in streamlining operations: implementing a TMS for carriers. Your fleet needs to be organized around a single system before AI can identify patterns or provide insights. And no, spreadsheets don’t count as a TMS! If you’re on the hunt for a robust TMS, we’ve got you covered. Feel free to contact us for a demo or create a free account to test out our excellent platform.
Maintenance and Driver Routing
Next up on the operational efficiency journey is addressing maintenance and driver routing, two areas that can be significantly improved with AI. A company that’s making strides in this area is AiFleet. They recently raised more funds to continue working on enhancing fleet utilization, as you can read here. With "AI" right in their name, you can bet they understand the importance of tech in trucking!
When it comes to maintenance, the TruckSpy TMS has functionality built right in, allowing you to track which trucks may require more or less maintenance. This can sometimes reveal interesting patterns related to driver habits or equipment issues, offering yet another layer of operational insight.
Leveraging AI to Enhance Profitability
The surge in Applied AI, as highlighted in McKinsey & Co’s 2023 Technology Trends Outlook, is not just a buzz in the tech world. It’s a signal pointing towards a future where businesses, including trucking companies, can harness the power of AI to boost their profitability. In fact, companies utilizing AI are already outperforming those that don’t, as indicated in last year’s State of AI in 2022 article.
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Raising Prices and Negotiating
Making more money can take various forms. The most straightforward approach? Raising prices. During your next contract negotiation, consider a price hike. And if you’re operating in the spot market, don’t be shy to ask for more before booking a load. Remember: negotiation is always on the table.
Digital Freight Matching and Discovery
Next, let’s talk about Digital Freight Matching (DTM) and discovery, which we touched upon at the start of the blog. DTM is essentially a load board with a “Book It Now” button. Some TMSs have load board integrations, which a fleet could use to match their truck with a load. However, this can sometimes be more cumbersome than going directly to the load board.
A tool that springs to mind in this context is Dispatch Robot AI. It automatically identifies the best loads from multiple marketplaces, streamlining the process of finding profitable opportunities.
Now maybe neither of those options work for you, a lot can be done nowadays with integrations and automations without the need for AI at all. Evaluate your current systems and processes and take note any that are especially manual or redundant. Those activities are ripe for automations!
Conclusion
In the realm of trucking, where margins can be thin and efficiency is key, AI emerges as a powerful ally. From enhancing driver performance to streamlining operations and identifying lucrative opportunities, AI is not just a technological advancement; it’s a tool that can drive (pun intended!) your trucking company towards greater profitability and success. See how TruckSpy Productivity Suite can help your fleet operate efficiently and profitably today. Also if you want to check out our YouTube channel here's a video of our AI Dash Cams in action.
