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in the best of times, the transportation industry must navigate constant hurdles. Routes, drivers, modes, supply chains: The industry must continually fit together these complex, moving parts to successfully provide service.
In recent years, the landscape has grown even more complicated—as volatile freight rates, driver availability, and consumer demand all make service and cost optimization more challenging than ever.
Companies may face high turnover rates, strict compliance regulations, and ever-evolving supply chain demands. Transportation organizations must maintain delivery speeds as a burgeoning and urbanizing global population gains purchasing power and shifts to e-commerce.
Amid this array of challenges, only 55% of transportation and logistics companies noted revenue growth in 2023, according to Deloitte.
The industry’s outdated technology isn’t helping matters. Across the past several decades, transportation companies have either purchased or built various point-solution products and customized them—creating a tangled web of disparate, aging systems. Siloed legacy systems leave transportation leaders with limited insight and ability to keep up with rapid changes and growth opportunities. Leaders struggle to leverage the full value of the vast amount of data available to their organizations when that data is stuck in separate systems.
Transportation organizations move goods from one place to another—that’s their value proposition. But they need technology that enables them to do that as efficiently as possible
says Riley Shearin, Head of Global Partner Success, Workday
Roughly a decade ago, early adopters in the transportation sector began undertaking digital transformation. More recently, as companies experience sky-high turnover among drivers and have very few programmers who can still handle cobbled-together legacy systems, there’s a growing realization that the industry must modernize its technology systems to remain competitive. In response, more transportation organizations are embracing a unified, cloud-based enterprise platform for people, finance, planning, and analytics to help deliver operational excellence.
This POV includes five ways that digital transformation can help the transportation industry meet the moment and seize growth opportunities.
Transportation organizations see the power of being able to marry their customer data, financial data, and people data—and how it all interrelates.
Anthony Lombardo, HR Strategy and Solutions, Managing Director, Deloitte Consulting LLP
Drivers are much more in tune with technology than they were in the past. They’re a very mobile workforce, and they want technology that’s easy and simple to use and gives them the information they want.
Riley Shearin, Head of Global Partner Success, Workday
Organizations are finding that if their frontline employees are excited about skilling and reskilling, it’s much cheaper and more effective than going out to the market and finding someone who might have the skill but might not be a fit or might not stick around.
Danielle Hawkins, Principal, Deloitte Consulting LLP
Transportation organizations move goods from one place to another—that’s their value proposition. But they need technology that enables them to do that as efficiently as possible.
Riley Shearin, Head of Global Partner Success, Workday
Leading the way to transformation
For transportation organizations, digital transformation can be a daunting prospect. They may see the work involved in modernizing old systems as “paralyzing,” Hawkins notes. But in a rapidly changing industry, transportation organizations have a choice between paralysis and action—between sticking with outdated systems that don’t support their future or even current operations, and embracing cloud-native technology that enables them to win.
Digital transformation requires change management, supported and guided by company leadership. To achieve the desired results, digitization efforts also will benefit from use cases and persona-driven examples that help bring the new technology to life—and show its benefits for all stakeholders, Hawkins says. “You can start to paint a picture from a user experience to show this is something to move toward, not run away from.”
The upside of digital transformation, as Ryder has found, is immense. “By eliminating our previous antiquated systems, Workday has allowed us to automate, giving our employees time to think, innovate, and act,” says Luis Zayas, vice president and division chief information officer, Ryder.