Transmetrics, a technology company started in 2013, aims to have a significant impact on the reduction of CO2 emissions by streamlining and optimizing transportation networks. The companies’ strength lies in the combination of human and artificial intelligence, ensuring the highest operational benefits and reducing the environmental impact of logistics.
Sea News interviewed the Chief Executive Officer of Transmetrics, Jonathan Fath, a few days back. According to him, by 2025, as many as 60 percent of the logistics companies would adopt AI, a number which is roughly around 12% now.
Read the complete interview to know how stakeholders can adapt and evolve with existing and future trends of technology in logistics and supply chain. The excerpts….
What is Transmetrics all about? How does Transmetrics add value to the industry?
A state-of-the-art AI platform developed exclusively for logistics, Transmetrics optimizes transport planning by leveraging the power of machine learning and predictive analytics. Transmetrics combines the strengths of humans and artificial intelligence, ensuring the highest operational benefits and reducing the environmental impact of logistics. We’ve developed a unique approach for analyzing, modeling, and predicting various transport flows with very high accuracy. Our solutions have brought significant benefits to the top-tier logistics companies worldwide that have experienced an up to 25% reduction in transport costs while increasing their fleet utilization up to 14% and maintaining high service levels.
What is the technical aspect involved in Transmetrics?
At Transmetrics, we want to empower our clients to be at the forefront of this AI revolution. In order to do so, our team has spent years developing the Transmetrics platform and fine-tuning state-of-the-art algorithms that derive useful insights by applying data evaluations, predictive analytics, forecasting, and optimization models. All these steps are supporting one important goal – helping logistics organizations make the optimal data-driven decisions ahead of the demand curve and pushing their service quality to the next level.
How have stakeholders in the industry responded to your solutions?
We’re getting very positive feedback from the industry. The best thing about our solution is that everybody wins: we achieve major cost savings, help make planning jobs more dynamic and reduce the harm done to our planet. To be honest, there are some people that have initial reservations about the technology or its implications in the beginning. One of the biggest misconceptions is that we replace humans which, rightly so, makes people uncomfortable. The truth is that we never replace humans, we provide them with tools to do job their jobs more easily and efficiently. There are of course a lot of startups that are aiming for our position in the market, but our technology is at least 5 years ahead of them so I’m not too worried about that specific subset of stakeholders, for now.
COVID-19 has changed it all (dynamics of doing business). What is Transmetrics lookout on such situations?
In a big way, the pandemic showed that things are not quite not as they seem—especially when it comes to the economy. We were one of the few companies that thrived during the pandemic which is of course a double edged sword because you know so many are struggling to get by. However, we were able to provide so much value for our clients that the positive feeling outweighs for us.
It is impossible to predict such events as COVID pandemic and how it can affect the world around us before it happens. In order to cope with such unforeseen events or high demand fluctuations, Transmetrics utilizes high-sensitivity machine learning algorithms that learn from the new incoming data and adjust the forecasting base over a period of time. With every new batch of data the algorithms get closer and closer to the real values and this way, we can ensure high forecasting accuracy.
Tell us something about the top sustainable ecosystem trends in the logistics industry; foreseeable changes and expected business models.
In the coming years, we will see a surge in companies embracing the sustainable approach in their operations. One of the major sustainability trends which I can highlight is the major adoption of AI. Currently, only 12% of logistics companies use AI in operations, but it is expected to grow to 60% by 2025. Such growth will inevitably improve the development of logistics demand forecasting and predictive capacity management that can reduce the number of empty runs, increase asset utilization, and optimize routing thus decreasing the CO2 emissions and congestions.
Logistics organizations can also decrease their environmental impact by modernizing fleets with electric, alternative-fuel, and autonomous vehicles or vessels. Combined with AI, these practices can form a new type of sustainable logistics ecosystem that brings the biggest benefits to businesses.
For example in the case of container shipping, the companies can adopt a Just-in-Time shipping model, which reduces the number of containers needed to satisfy the upcoming demand, ultimately decreasing the number of containers and ships needed to transport goods while mitigating the negative environmental impact of the sector.
How companies are influencing the reduction of CO2 emissions with the streamlining and optimizing of transportation networks?
If you are a company that provides a diverse set of logistics services to your clients, you should always analyze your network performance for the sign of bottlenecks and inefficiencies. One of the most common consequences of these issues is a constant underutilization of your assets, those being trucks, last-mile vehicles, or containers. This is one of the reasons why 1/3 of containers in the world are moving empty and every fifth truck in the EU travels unoccupied with cargo.
Adopting digital strategies that are focused on predictive analytics and data-driven optimization can drastically improve the planning process and in return increase the utilization rate for the company’s assets. In the long run, it results in fewer trucks or vans used, since the shipments are proactively consolidated and vehicles with low utilization can be canceled.
As I have mentioned in my previous answer, a very similar result can be achieved in the container shipping sector. AI-powered demand forecasting can alert your team where and when exactly the containers are needed well in advance. That means that your team can take proactive decisions for the container repositioning and optimize the network performance before the actual demand even occurs. All of these efforts are eventually reducing the CO2 impact of your operations, bringing your business to being more sustainable.
Tell us something about yourself. And anything more you would like to add about Transmetrics and logistics ad supply chain.
Nothing to add really, I’d like to invite people to connect with me and share their visions, challenges and ideas for the future of logistics and supply chain!
Sea News Feature, April 20