Digital Supply Chain Offers Greater Potential Than Electric, Autonomous Trucks
Persio Lisboa talks to suppliers about the need to be leaders in technology to improve trucking productivity.
" >Persio Lisboa talks to suppliers about the need to be leaders in technology to improve trucking productivity.
" width="300" height="300">ATLANTA – Amidst a show where major topics of conversation included electrification of commercial vehicles and the path to autonomous trucks, one industry exec said the digital supply chain will be the next big breakthrough in trucking productivity.
Speaking to an audience of suppliers at the Heavy Duty Manufacturers Association Breakfast and Briefing at the inaugural North American Commercial Vehicle Show, Persio Lisboa, executive vice president and COO of Navistar International, predicted that data and analytics will drive advances in trucking industry productivity while imposing increasingly stringent design requirements for truck and component reliability.
The supply chain is changing rapidly, he noted, thanks in large part to the growth of e-commerce. “Customers' expectation are totally different today than they were five years ago; 48 hour delivery is starting to sound like a terribly long time.”
However, he said, this incredibly fast and efficient delivery system has a very inefficient back end. For every truckload of products that hit the front door of a customer, there are four other equivalent loads taking place to manage returns, transfers between PDCs, etc., he said – “an efficient system maintained by an inefficient supply chain.”
And who is paying for those inefficiencies? It's not the end consumer, he said, and it's not Amazon. Which means those in the supply chain are likely footing the bill.
Those inefficiencies are hardly news to fleets. As one customer told Navistar, “We don't need more drivers, we need more time driving." Large carriers typically report that drivers are only actually driving about 6.5 hours out of their 11 hours of available driving time. The rest is wasted on things like waiting to load and unload.
“The only answer that makes any sense is we need to ...Read the rest of this story
