ABI Research survey finds over 40% of logistics respondents view FaaS as a key transformational trend

Scottsdale, Arizona - 15 Aug 2017

In a recent B2B technology survey of 455 U.S.-based companies across nine verticals, ABI Research finds 41% of logistics respondents view Freight as a Service (FaaS) as a key transformative technology trend. The rapid growth of e-commerce requires new transport modes such as delivery drones and robots, direct-to-car, and direct-to-home deliveries. FaaS will represent 30% or more than US$900 billion of total goods transportation revenues by 2030. Turning freight transport into a service allows cargo capacity to be ordered seamlessly and spontaneously in open marketplaces which will optimize capacity utilization and reduce costs.

“Only 2% of logistics respondents appear to comprehend the disruptive capabilities of ETE Supply Chain Visibility states Susan Beardslee, Senior Analyst at ABI Research “However transparency across multiple modes and suppliers drive material ROI through reduced inventory, lead-time, and losses, as well as enhanced service levels through responses to demand surges and external variables.”

ABI Research found logistics firms are adding wearable technologies such as Apple watches, GoPro’s and Google Glasses, with 61% adopting as part of their technology innovation strategy. AI platforms are beginning to enjoy growing adoption rates. Data analytics is starting to “cross the chasm” along with the traditional role of monitoring with both leveraging the emerging capabilities of AI. Real time analytics of vast, evolving, and unstructured data are beginning to transform the supply chain.

Key survey findings concerning attitudes towards and perceived benefits of key technologies include:

• Legacy Systems: 42% of logistics respondents consider alignment with their existing legacy framework as the largest barrier preventing adoption. This highlights the importance of open systems and integration support to drive scalable interest and implementation.
• Co-opetition : Over a quarter of respondents expect to keep their data closed for internal use. This appears to be a trend as evidenced by only 6% highly considering sharing operational data with industry peers and only 12% with key partners.
• Robotics: Warehouse solutions, such as Kiva systems at Amazon, support advanced visioning, mobility, autonomous navigation, complex manipulation, and motion control. This reduces costs, increases productivity, and improves quality for material handling tasks. Nearly a quarter of respondents see this poised for a high level of disruption.
• Indoor-Location and Asset Tracking : The value of goods tracking increases exponentially when it can be integrated into a comprehensive digital strategy with adjacencies like manufacturing, storage, and transportation; increasing potential revenues and reducing loss, and human investment. 58% of respondents in total prioritized the value of integration, TTD, and operational cost savings.

These findings are from ABI Research’s Industry Survey: Transformative Technology Adoption and Attitudes – Logistics report. This report is part of the company’s Intelligent Transportation & eFreight research service, which includes research, data, and analyst insights.