Artificial intelligence (AI) is at its prime now more than ever. As AI continues to find its way into the trucking industry, it proves that such technological advancements are more than just about generating random images on the web. In fact, AI in trucking is the future, and your fleet should start adapting accordingly.
In this post, we discussed the latest trucking trends involving AI and how it can potentially benefit your growing fleet. Read on to see how this larger-than-life technology can apply to your operations!
The future of Trucking industry with AI
Artificial intelligence is here to stay and revolutionize the trucking industry. If you’ve been a trucker for years, you’re lucky enough to witness how everything transitioned from manual processes to automation in the advent of the internet.
And as AI technology gets bigger, we’re now seeing the following integrations in fleet management:
1. Intelligent dispatch and route planning
Artificial intelligence plays a huge part in the automation of the trucking industry, specifically in terms of dispatch and route planning. We’ve seen large fleets use AI-powered systems to quickly match their driver’s history and driving routes with the available loads and load rates.
At the same time, they use AI systems to identify which route or load is the most profitable. This way, they can easily dispatch their trucks without having to go through hours or days of manual planning.
Take note that even small fleets like yours can also benefit from this system. In fact, AI-powered dispatch systems can help you minimize deadhead miles by finding available loads at your destination. This way, you’ll keep making money on your way back to your original location.
2. Streamlined paperwork automation
Although many trucking processes have already been digitized, it still remains a paper-driven industry. AI can help in speeding up the processing of this paperwork so it doesn’t stack up on your table. Most importantly, it saves you from skipping driving days just to deal with manual paperwork in the office.
Some of the AI systems widely used nowadays in trucking include optical character recognition (OCR), electronic logging devices (ELDs), automated billing, and document management software. All these cut your admin work by a huge notch, which is very beneficial if you’re an owner-operator.
As a factoring company, we can’t stress the importance of artificial intelligence in our operations. It helps us serve truckers with quick funding and accurate document management, so they can focus on delivering hauls.
3. Improving fuel efficiency
AI technologies are also seeking to tackle the biggest challenge in the logistics industry: fuel efficiency. It’s possible through smart route optimization where AI algorithms look for the best possible route to help you save fuel.
At the same time, AI systems can also monitor driver behavior, which gives you insights into aggressive driving habits and how it eats more fuel than necessary. Also, telematics logs real-time data about your truck’s speed, location, and fuel consumption. For fleet managers, this data is extremely valuable in reviewing each truck and drivers’ efficiency on the road.
4. Increased fraud prevention
According to the latest survey by TriumphPay and FreightWaves, double brokering impacts $500 to $700 million of freight costs every year. This type of fraud happens when a broker offers cargo to a trucker without the knowledge of the shipper, who’s also talking to another trucker.
The good thing is that advancements in AI technology can prevent this from happening. Some systems show double brokering risks and alert you of possible fraud before you sign up for the haul.
5. Predictive maintenance for fleets
Regular maintenance is crucial for your fleet’s smooth ride. With AI’s predictive maintenance, you can level up your fleet’s check-ups by flagging potential vehicle issues before they happen.
For example, modern trucks come with telematics that monitor engine health. It will also push alerts and notifications if your engine’s performance has reached a certain decline. This way, you can get immediate checks before you experience a roadside emergency.
In the long run, this proactive technology can help you save a lot of money from severe vehicle damage. At the same time, it will prevent potential delays that will cost you more in missed revenue.
6. Efficient warehousing
Take note that AI in logistics is not helpful in managing a fleet, but also in the warehousing sector. Through automated systems, warehouse managers can easily oversee inventory and provide carriers or truckers a more accurate demand forecast.
Aside from that, AI can be used to speed up picking and sorting, quality control, and packing, which makes cargo available much faster for truckers to transport.
At the same time, it will help warehouse managers save a lot of time and resources from manually doing all the work.
Some concerns about AI in trucking
Just like in any industry, there are some concerns about the use of AI in trucking. Here are some of the current worries that many truckers and managers voice out as AI gets more widespread in logistics:
- Job displacement. Some drivers worry that the rising use of AI in the trucking industry could cost them their jobs. But while artificial intelligence will surely automate processes, it’s far from replacing actual drivers on the road. Sure, there are developments about self-driving trucks, but they are still far from hitting the roads.
- Questionable reliability. There are also concerns about how reliable AI can be once it starts taking over more complicated tasks. The good thing is that artificial intelligence is only meant to be a supplemental solution, not a total replacement for human expertise.
- Data privacy threats. Artificial intelligence is expanding at the seams, and so are the cyber threats that come with it. Many fleet managers have raised concerns about potential breaches, which can compromise the sensitive data of their clients, drivers, and stakeholders.
- Steep learning curve. For truckers who are used to traditional management systems, it can be challenging to switch to artificial intelligence. It may take a lot of resources to implement a new AI infrastructure to your fleet.
- Possible supply chain disruption. The recent CrowdStrike and Microsoft outage have taught us that even tech giants can buckle and cause a massive international outage. Once AI has taken over much of logistics management, some are worried that a similar situation may occur.
Some questions about the future of trucking with AI
The implementation of artificial intelligence in trucking has raised many questions among truckers and fleet managers. Here are some of the queries we’ve heard in the trucking community:
Are there any potential downsides to relying on AI systems for trucking?
As with any technological system, artificial intelligence comes with some downsides. After all, it’s still evolving and we’re yet to see its full effect in the trucking industry.
Right now, many are concerned about potential cybersecurity threats and over-reliance on technology. Still, this doesn’t mean AI is totally negative. You can still utilize some AI systems to boost your operations while maintaining some level of personal control over them.
Will self-driving trucks take the road soon?
As much as advocates say that the future of self-driving trucks is near, it’s still fat from overtaking traditional freight. After all, the test drives done by manufacturers still involve humans as ‘safety drivers’ on the passenger seat.
Overall, autonomous trucks don’t seem to be an imminent threat to the livelihood of truck drivers.
Can smaller fleets benefit from AI systems?
Of course! As a factoring for trucking company, we’ve seen how artificial intelligence has revolutionized the operations of small fleets and owner-operators.
Take note that it doesn’t always have to be futuristic AI technologies. You can start with basic automation for shipment tracking, invoicing, checking for the best routes, and more.
How would AI affect freight pricing?
Based on the benefits it could bring, artificial intelligence can help truckers boost their bottom line. For example, since AI tools can automate admin tasks, truckers don’t have to miss days on the road. This means they can deliver more hauls and make more money for their business.
Aside from that, truckers can use AI systems to forecast prices better and find more lucrative cargo.
Future-proof your trucking business with Factoring Express
Overall, artificial intelligence can bring a better future for the logistics sector. But while AI continues to improve trucking management, some old problems still linger. This includes poor cash flow, long payment cycles, and rising fuel costs.
Artificial intelligence may not provide solutions for all these, but our factoring services can! With Factoring Express, you can turn invoices into instant cash instead of waiting 30, 60, or 90 days for shippers to pay. Not only that, we will also take over the collections process so you can focus on delivering more loads.
Aside from that, our factoring trucking company also offers a myriad of solutions for your fleet in Florida. We provide fuel advances, fuel cards, dispatch services, and accounting for truckers, so they can future-proof their fleet and grow their business.
Ready to get started? Contact us today to talk to one of our specialists!
