Lack of sustainability goals revealed in transport sector

There is a significant gap in the adoption of basic data analytics and artificial intelligence (AI) in the UK’s transport sector, new research suggests.

There is also a lack of sustainability goals and progress toward achieving real-time supply chain visibility among transportation and logistics companies.

The research was commissioned by Here Technologies for its latest global 'On the Move' survey developed in part with Amazon Web Services (AWS).

In the survey, conducted by YouGov, only 50% of logistics firms in the UK are utilising basic data analytics. This contrasts with 41% of respondents in Germany and 63% in the US.

Continuing with AI, just 19% of UK organisations are deploying it in areas such as demand forecasting, which the research says underscores the untapped potential of AI – from using machine learning to fine tuning algorithms for fleet route optimisation – to modernising logistics operations, streamline processes, and inform strategic decision-making.

The findings contrast with the UK’s ranking in the top 20 worldwide of last year’s World Bank Logistics Performance Index.

While the study highlights the lack of AI utilisation, it also identifies barriers to general data technology implementation.

Cost emerges as the primary obstacle hindering widespread adoption, according to 26% of logistics professionals in the UK, while 13% of respondents cite a lack of internal expertise and/or resources as a barrier.

In the US and Germany, a majority of logistics professionals express concerns about potential disruptions to current processes and services.

When adopting new technologies, 76% of UK companies say they would rather approach external providers who have readily available solutions, instead of developing capabilities in-house.

Sustainability

Despite a global emphasis on sustainable practices, the study reveals a significant gap in the prioritisation of sustainability among logistics companies in the UK.

More than 60% of UK logistics professionals cite their operations as not currently having defined sustainability goals tailored to their transport and logistics operations, with 33% having no plans to define such goals either.

Sustainability was ranked as the least important out of seven end-to-end supply chain and logistics management considerations in the UK, placed in seventh place by 24% of organisations.

While US respondents focused primarily on drivers' safety, transport and logistics professionals in the UK prioritised improving customer satisfaction.

Visibility

The Here Technologies and AWS study reveals that more than two-thirds (72%) of transport and logistics professionals surveyed the UK and 68% in the US believe their company is making some progress toward achieving real-time supply chain visibility.

However, less than one in four respondents across each country believe their operations have made ‘significant’ progress.

Location technology

Although improving driver routing remains a top priority for respondents, the survey reveals that logistics businesses in the UK are not fully leveraging location data.

Among UK organisations, 41% now use location technology for driver routing, and 30% use it to improve on-time deliveries, but less than a third of logistics firms (28%) use this location data to optimise route planning and transport logistics.

Remco Timmer, vice president of product management at Here Technologies, said: “On one hand, this study shows the progress being made by companies towards increasing their supply chain visibility. On the other hand, it’s clear the industry currently lacks the contextual data, AI capabilities and tools needed to optimize fleet deployments, routing, and appropriate mode switching."

“As a result, we’re seeing increased demand for location data and services that enable logistics companies to overcome disruptions in real-time while reducing emissions and improving employee safety in the process.”

To read the full ‘On the Move’ survey report for the UK, click here.