China's ForU Trucking says big data is revolutionising freight transport
ARTIFICIAL intelligence and big data are driving a 'radical transformation' in China's freight transportation industry, ForU Trucking CEO Dandan Shan said during a keynote speech at RISE 2019 in Hong Kong
ARTIFICIAL intelligence and big data are driving a 'radical transformation' in China's freight transportation industry, ForU Trucking CEO Dandan Shan said during a keynote speech at RISE 2019 in Hong Kong.
Ms Shan, who founded the truckload service provider in China in 2015, highlighted how technology had enabled the optimisation of revenue and customer service in one of Asia's fastest-growing industries.
Demand for freight transportation has risen as a result of the ecommerce explosion in China, pushing up the market share value of truckload services to CNY1.92 trillion (US$284.16 million). Truckload services currently represent two-thirds of China's freight transportation market and this figure is predicted to reach CNY2.42 trillion by 2020.
According to Ms Shan, there are three pain points plaguing today's industry: a lack of standardised pricing, inefficient dispatching and unreliable service quality. To address these, ForU Trucking developed an online truck logistics platform, which uses 'intelligent pricing, intelligent service and intelligent dispatch to handle fuel efficiency and customer experience,' a company statement said.
To streamline and optimise pricing, the company's platform uses an algorithm that harnesses information collected from big data (such as truck capacity, distance, historical pricing, seasonality and existing demand versus supply) to provide an accurate and standardized quotation in under two minutes.
Powered by artificial intelligence, its intelligent dispatch system optimises routes for drivers, raising a truck's monthly operating mileage from 6,520 kilometres to 11,000 km, and lowering the transportation cost per load by one-fifth. These savings have also directly benefited drivers with a 12.5 per cent rise in monthly revenue.
The platform's real-time system monitoring delivers consistent service standards for enhanced customer experience. It achieves this by deploying real-time location-based services, big data and geographic information system (GIS), and predictions calculated by artificial intelligence (AI) to automatically detect and report any abnormalities that occur throughout the transportation process.
The company said that these systems allow for greater operational efficiency, resulting in a tenfold increase in the number of orders processed per day per person.