Freight Automation: TaaS (Transportation as a Service)

Published on Aug 30, 2019

Updated on Nov 6, 2019

Governments are keen on introducing high capacity vehicles (HCV) to limit traffic congestion and reduce carbon footprints through freight transportation. But, truckers struggle with finding their next load on the backhaul and, of course, want to clear payments as fast as possible.

E-commerce has brought about a 5% increase in urban shipment demand. But, the situation is- retailers complain of goods not reaching the customer in time because of trucker shortage. And transporters claim- they suffer significant losses due to deadhead miles. Ironically, the load trucks are rolling, but without loads or lesser goads than their capacity, which leads to the transporter’s loss.

This article highlights how freight automation can maximize load bookings to bring a favourable impact on the transportation and logistics industry.

Logistics & Transport Service Challenges

The traditional shipping process involves contacting third party brokers and vetting the shipper manually. Despite being at the core of the supply chain, transportation services lack innovations to improve operational efficiency. The following are some crucial challenges that the logistics industry faces, even today!

Deadhead Miles

The trucks operating without load contribute to dead miles. Dead miles can occur when a carrier travels from location A to location B to pick items or it returns empty from location C to location A after dispatching the load.

According to the American Transportation Research Institute (ATRI) survey report 2017, it costs $66.65 per hour to operate a truck.

Traditionally, small trucking companies call freight brokers, who in turn call up warehouses to find if there’s freight ready for hauling. Unfortunately, about 15%-25% of the time, truckers end up carrying zero freight.

Therefore, deadhead miles certainly bring a huge loss, especially because freight services generally operate interstate.

Lack of Price Transparency

The transportation sector has been struggling with inflexible prices and backhaul charges. Fleet operators often demand deadhead miles charges for the shipment. Thus, irrespective of cargo capacity (or the volume to it’s full), the operator can charge sellers any amount.

Trucker Shortage

Trucking companies have reported truck driver shortage as their top industry issue in 2017-18. The American Trucking Associations state- the industry needs to recruit and train 898,000 new truckers by 2026.

Manual Booking

On average, a logistics company may waste 4000 to 6000+ hours to manually create bookings via phone calls, emails, and coordinating with drivers and manufacturers.

Benefits of Freight Automation

Transportation-as-a-Service (TaaS) can bring manufacturers/sellers, shippers, and carriers on a common platform. Automation solutions can bring the following benefits-

Route Matching and Optimization

Traditional backhauls include unused available capacity, causing deadhead mileage.

With route matching feature of a freight automation system, instead of travelling back and forth from location A to location B, and then starting a new haul from location A to location C; trucker can find the best route to reach location C enroute.

Efficiently Managing Fleet Operations

Traditionally, equipment tracking was dependent on manual data entry from drivers, shippers, and consignees. The process was not only cumbersome but also error-prone. Transportation supply chain automation helps in managing fleet operations in the following ways-

Lodging truckers’ start and end time automatically add to the accuracy of HOS (Hours of Service) records.
Vehicle tracking can identify bottlenecks and provide instant support in case of accidents, fuel shortage, roadblocks, or other unanticipated highway incidents.
Route guidance enables efficient haul plans.
It can reduce idling time and thus improve fleet productivity.

Transparent Pricing

Transparency in pricing can make freight transport robust and reliable.

For instance, Uber Freight has introduced Lane Explorer, which shows real-time market-based rates, up to two weeks in advance.

Online Processes

In any logistics and transport organization, the manual payment cycle requires 40%-60% more time and effort than its automation counterpart. Freight bill automation can solve the heavy-haul truckers’ problem of receiving payments faster. Eliminating manual processes can improve overall supply chain efficiency.

Collaboration Between Fleet Brokers

OECD states– Truck platooning can save over 10% in operational costs. Platooning is driving a group of vehicles together to increase road capacity via an automated highway system.

At the same time, HCVs (High Capacity Vehicles) that carry 50% more load than traditional trucks can save up to 20% cost/km.

However, truck platooning and utilizing complete HCVs capacity requires collaboration between shippers, carriers, and freight brokers. Automation can bring different stakeholders from the freight and logistics industry on a common platform to work together.

Product Spotlight

HwyHaul, a leading California-based freight brokerage startup uses transportation automation to connect enterprises with truckers. It simplifies the ‘load booking’ process for shippers and seamlessly empowers them with a state of the art Transportation as a Service (TaaS) solution.

Currently serving Reefer, Dry Van, and Flatbed loads, HwyHaul connects shippers and carriers on a common platform. The distinct features that freight-logistics management platform brings are-

Shipping enterprises can create and track their freight from booking to end-of-delivery.
Trucking companies (carriers) can manage their fleet and drivers.
Internal operations team can oversee and govern backend processes.
Truckers can use HwyHaul app to book and deliver loads without having to wait for telephonic communication.

We specialize in developing industry-specific and logistics & freight automation products. Contact us at hello@mantralabsglobal.com to learn more.

Bottom Line

Load bookings and freight brokerage automation solutions can contribute to reducing carbon footprint and improve fleet productivity to a great extent.

PwC 2019 report says by 2030, automation will shorten delivery lead times by 40% and reduce logistics costs for standardized transport by 47%. With newer disruptions like driverless trucks, relay-as-a-service model and automatic freight scheduling on the horizon, the transportation and logistics industry is on the cusp of unlocking new revenues across the value chain.

We have all witnessed Industrial Revolutions reshape manufacturing, not just once, but multiple times throughout history. Yet perhaps “revolution” isn’t quite the right word. These were transitions, careful orchestrations of human adaptation, and technological advancement. From hand production to machine tools, from steam power to assembly lines, each transition proved something remarkable: as machines evolved, human capabilities expanded rather than diminished.

Take the First Industrial Revolution, where the shift from manual production to machinery didn’t replace craftsmen, it transformed them into skilled machine operators. The steam engine didn’t eliminate jobs; it created entirely new categories of work. When chemical manufacturing processes emerged, they didn’t displace workers; they birthed manufacturing job roles. With each advancement, the workforce didn’t shrink—it evolved, adapted, and ultimately thrived.

Today, we’re witnessing another manufacturing transformation on factory floors worldwide. But unlike the mechanical transformations of the past, this one is digital, driven by artificial intelligence(AI) working alongside human expertise. Just as our predecessors didn’t simply survive the mechanical revolution but mastered it, today’s workforce isn’t being replaced by AI in manufacturing, they’re becoming AI conductors, orchestrating a symphony of smart machines, industrial IoT (IIoT), and intelligent automation that amplify human productivity in ways the steam engine’s inventors could never have imagined.

Let’s explore how this new breed of human-AI collaboration is reshaping manufacturing, making work not just smarter, but fundamentally more human.

Tools and Techniques Enhancing Workforce Productivity

1. Augmented Reality: Bringing Instructions to Life

AI-powered augmented reality (AR) is revolutionizing assembly lines, equipment, and maintenance on factory floors. Imagine a technician troubleshooting complex machinery while wearing AR glasses that overlay real-time instructions. Microsoft HoloLens merges physical environments with AI-driven digital overlays, providing immersive step-by-step guidance. Meanwhile, PTC Vuforia’s AR solutions offer comprehensive real-time guidance and expert support by visualizing machine components and manufacturing processes. Ford’s AI-driven AR applications of HoloLens have cut design errors and improved assembly efficiency, making smart manufacturing more precise and faster.

2. Vision-Based Quality Control: Flawless Production Lines

Identifying minute defects on fast-moving production lines is nearly impossible for the human eye, but AI-driven computer vision systems are revolutionizing quality control in manufacturing. Landing AI customizes AI defect detection models to identify irregularities unique to a factory’s production environment, while Cognex’s high-speed image recognition solutions achieve up to 99.9% defect detection accuracy. With these AI-powered quality control tools, manufacturers have reduced inspection time by 70%, improving the overall product quality without halting production lines.

3. Digital Twins: Simulating the Factory in Real Time

Digital twins—virtual replicas of physical assets are transforming real-time monitoring and operational efficiency. Siemens MindSphere provides a cloud-based AI platform that connects factory equipment for real-time data analytics and actionable insights. GE Digital’s Predix enables predictive maintenance by simulating different scenarios to identify potential failures before they happen. By leveraging AI-driven digital twins, industries have reported a 20% reduction in downtime, with the global digital twin market projected to grow at a CAGR of 61.3% by 2028

4. Human-Machine Interfaces: Intuitive Control Panels

Traditional control panels are being replaced by intuitive AI-powered human-machine interfaces (HMIs) which simplify machine operations and predictive maintenance. Rockwell Automation’s FactoryTalk uses AI analytics to provide real-time performance analytics, allowing operators to anticipate machine malfunctions and optimize operations. Schneider Electric’s EcoStruxure incorporates predictive analytics to simplify maintenance schedules and improve decision-making.

5. Generative AI: Crafting Smarter Factory Layouts

Generative AI is transforming factory layout planning by turning it into a data-driven process. Autodesk Fusion 360 Generative Design evaluates thousands of layout configurations to determine the best possible arrangement based on production constraints. This allows manufacturers to visualize and select the most efficient setup, which has led to a 40% improvement in space utilization and a 25% reduction in material waste. By simulating layouts, manufacturers can boost productivity, efficiency and worker safety.

6. Wearable AI Devices: Hands-Free Assistance

Wearable AI devices are becoming essential tools for enhancing worker safety and efficiency on the factory floor. DAQRI smart helmets provide workers with real-time information and alerts, while RealWear HMT-1 offers voice-controlled access to data and maintenance instructions. These AI-integrated wearable devices are transforming the way workers interact with machinery, boosting productivity by 20% and reducing machine downtime by 25%.

7. Conversational AI: Simplifying Operations with Voice Commands

Conversational AI is simplifying factory operations with natural language processing (NLP), allowing workers to request updates, check machine status, and adjust schedules using voice commands. IBM Watson Assistant and AWS AI services make these interactions seamless by providing real-time insights. Factories have seen a reduction in response time for operational queries thanks to these tools, with IBM Watson helping streamline machine monitoring and decision-making processes.

Conclusion: The Future of Manufacturing Is Here

Every industrial revolution has sparked the same fear, machines will take over. But history tells a different story. With every technological leap, humans haven’t been replaced; they’ve adapted, evolved, and found new ways to work smarter. AI is no different. It’s not here to take over; it’s here to assist, making factories faster, safer, and more productive than ever.

From AR-powered guidance to AI-driven quality control, the factory floor is no longer just about machinery, it’s about collaboration between human expertise and intelligent systems. And at Mantra Labs, we’re diving deep into this transformation, helping businesses unlock the true potential of AI in manufacturing.

Want to see how AI-powered Augmented Reality is revolutionizing the manufacturing industry? Stay tuned for our next blog, where we’ll explore how AI in AR is reshaping assembly, troubleshooting, and worker training—one digital overlay at a time.

Maximizing Load Bookings with Freight Transport Automation