Aim of the project: increasing the innovative capital of the company by harnessing the R&D potential for the development of a new high value-added product. As part of the project, it is planned to develop a product for the US freight logistics market (specifically carried out for the FTL market segment) – the prototype of the data exchange aggregator. This product focuses on the automation of the cargo search, by aggregation of transport exchange data.
The analysis of particularities of dispatchers has shown that the mechanized sequence of operations carried out by dispatchers and the methods of decision specific to the market are improved in terms of the cost of working time and the profitability of operations. The positioning of the deliverable product in the project is based on innovation in value, which is manifested by better resource efficiency of logistics companies.
The product performs the selection of the most suitable cargo according to the company’s transport management rules (essential and unique functionality of the product). The data exchange aggregator developed by TeleSoftas enables the dispatcher to find the most profitable cargo on the market at the current location, subject to the company’s transport management rules. Once it is fully implemented, the developed product will provide a deeper analysis of the profitability of dispatcher operations in 2 directions: evaluating working time costs and changes in transaction profitability (rate per mile).
By aggregating the data of transport exchanges and applying the innovative optimum cargo handling methods, the system will be able to estimate the projected profitability ratio (PPR) and reduce average load time which is critically important in the freight logistics sector. The PPR assessment is seen as one of the key benefits of a product, allowing the dispatcher to make decisions in search of solutions for transport tasks.
The functionality of the transport exchange data aggregator:
- Dashboard with truck locations and time of availability;
- Freight offer aggregation from transport exchanges and other data sources;
- Providing income and cost reports;
- Selection of the optimal cargo sequence according to the company’s transport management rules (essential and unique product functionality);
- Mapping and forecasting of the market prices for freight transportation.
The data exchange aggregator developed by UAB TeleSoftas would allow about 50% reduction of time spent on freight search. The developed product would allow us to optimize the profitability of the concluded transactions – due to the choice of more profitable contracts and their forecasting in 2-5 steps to the future, the profitability ratio of the transactions might reach 7-8%. Increased efficiency would eventually lead to a change (increase) in the number of trucks per dispatcher, which would eventually reduce the company’s payroll-related administrative costs.
Another important aspect of the data exchange aggregator is the ability to extend the head-haul mile range for the fleet. The algorithm which suggests the loads is optimized in a way, that truck must move as much as possible, and to do that in higher-rated regions.
Checking the functionality of the system prototype will be performed using real data, real-time statistics, and transaction information. The project contributes to the implementation of two priority research and experimental development and innovation development (smart specialization) priorities: (5) smart, clean, connected transport, and (6) information and communication technology.
The project duration – 24 months. UAB TeleSoftas will invest in research and development activities, in order to create a methodology for calculating sub-optimal freight transport, which will be used for building a prototype transport exchange data aggregator. The project will be implemented without partners. Project value: 717.716,58 Eur.
Funding is sought under the facility No. 01.2.1-LVPA-K-856 “Experiment” of Priority 1 “Promotion of Research, Experimental Development and Innovation” of the Operational Programme of the European Union Funds Investments 2014-2020. Funded as part of the EU’s response to the COVID-19 pandemic. Financial support would enable the company to present the product relevant to the market in a much shorter time, thus allowing it to gain a significant competitive advantage. During the implementation of the project, research and experimental development activities will be actively expanded, and on the basis of their innovation, competitive high value-added products will be created both at the national and international levels, which will contribute to increasing the competitiveness of Lithuania and the Baltic region. The commercialization of this product would enable the company to develop new high value-added products and services, expanding into new markets (the US and Canada) and increasing export volumes (sales).