The logistics industry is notorious for some very significant inefficiencies. For instance, 24% of the road freight kilometers in Europe are driven by trucks which are completely empty. When carrying cargo, the trucks are full to only 57% of their gross weight capacity. 50% of trucks travel empty on their return journey after making a delivery. The numbers vary for the road, air, rail and ocean freight companies but the fact is that they all suffer from a very inefficient utilisation of capacity and assets.
The Importance of Forecasting
Predictive analytics is necessary for cargo companies because transport orders are booked by shippers in the last minute, and cargo companies have to make transport plans in advance, before knowing what they will have to transport, ending up with a huge gap between demand for and supply of capacity. Additionally, shipment volumes fluctuate because of various external factors, such as public holidays, weather, industrial seasonalities, new product launches, commodity prices and the like.
Transmetrics’ solution analyzes the past behavior of shippers, to understand how they are likely to behave in certain situations, in order to predict what level of transport orders a transport company is likely to receive daily. This is provided in a very detailed breakdown – day by day, and per trade lane. This, together with a strong transport network simulation and optimization, allows transport companies to understand which of the planned trips for the next few days are needed, and which can be safely cancelled. Because today they are playing on the side of safety when planning capacity, predictive analytics gives them the ability to cancel some trips at a reduced risk. Transmetrics’ prediction approach is based on advanced statistical methods, machine learning, data mining algorithms and deep industry knowledge.
Technical Requirements: Almost None
Big Data and predictive analytics are complex concepts. That’s why our experienced team made the process of integrating and using Transmetrics as easy as possible for our clients.
Historical dataAt least 6 months of historical data (e.g. shipment measurements, tracking information, vehicle movements, etc.)
VPN connectionWe automatically extract data on a daily basis to provide you with the most accurate forecasts for your company.
That's it!Transmetrics is a Software-as-a-Service solution, so all hardware and software is provided by us on a monthly subscription basis.
Transmetrics tool helped companies save up to 25% of the linehaul costs, significantly increasing their profits as well as capacity and asset utilization.
Additionally, here are some results from the previous Proof of Concept projects:
For one of the pilot customers, the biggest cargo company in the world, Transmetrics made a prediction of future shipments with high-level accuracy – over 90%.
Data-driven simulations for another pilot customer (one of the Top 50 global freight companies) show that for groupage network, Transmetrics’ prediction enables a reduction of empty space within vehicles from 43% down to 18%. Such a reduction would potentially increase their profit by 300% annually.
Another pilot customer, with Transmetrics’ prediction, could achieve a 25% reduction in empty container logistics, which would equal approximately EUR 3 million in savings annually.
Our pricing follows monthly subscription model, which eliminates huge upfront investments and allows even medium and smaller sized transport companies benefit from our solution.
Transmetrics is tackling a huge market with a clear opportunity there. I think they have all the skills necessary to solve the problem and we are behind them.
Rumen Iliev > LaunchHub
Since the very first day of our cooperation with Transmetrics team, we have been working with people who know how to listen and who are putting their best efforts into understanding the requirements. They have supported us with their own vision and ideas, and, in my opinion, this cooperation has produced excellent results.
Iliyan Petkov > DPD Bulgaria
Transmetrics has developed and is continuing to develop, a much needed big data solution for transport companies that promises to address one of the biggest issues that these companies have, that of optimizing the use of assets. The continued work of this startup will further assist companies in the optimization of multi-modal shipments as well as in the synchronization of modal shipments for optimal scheduling.
Prof. Rod J. Franklin > Kuehne Logistics University