In today’s fast-paced world, global trade has become more dynamic than ever, presenting new challenges for the logistics industry. Loss or damage of consignments, delayed or wrong deliveries, and inability to locate goods at the warehouse/dock are just a few of the complexities logistics companies must navigate to ensure smooth operations.
To address these challenges, many businesses are turning to multimodal transportation, which combines different modes of transportation, including road, air, water, and rail. However, with multiple modes of transportation arises the need for tracking shipments across all the modes, i.e. multimodal visibility.
What is Multimodal Visibility?
Multimodal visibility refers to monitoring and tracking shipments across various modes of transportation. It provides a comprehensive supply chain view and enables companies to identify inefficiencies and address potential issues. With the increasing complexity of global trade and supply chains, multimodal visibility has become essential for logistics companies to manage their operations effectively. According to Gartner, multimodal visibility is rapidly becoming a critical component of the logistics industry, with an expected annual growth rate of 14.3% to reach a value of $35.65 billion by 2026.
For example, a manufacturing company can use multimodal visibility software to track the movement of raw materials from domestic and global suppliers to their plants and the movement of finished goods from their plants to customers across the globe.
Multimodal visibility also helps optimism intermodal transportation costs and reduce transportation costs by minimizing the time spent on the road. It also helps reduce carbon emissions. According to the Environmental Protection Agency (EPA), if enterprises replace over-the-road freight movement with intermodal transportation for shipments that travel 1000 miles, they can reduce greenhouse gas (GHG) emissions by over 65%.
Emerging Trends in Cross-Border Trade
Cross-border trade has been on the rise in recent years, with an increasing number of businesses engaging in international trade. The rise of digital technologies has also made it easier for businesses to expand their customer base beyond their domestic markets. E-commerce plays a significant role in the growth of cross-border trade, with online marketplaces connecting buyers and sellers across countries.
In 2020, the global cross-border e-commerce market size was estimated at USD 888.57 billion, and it is projected to expand at a CAGR of 25.8% by 2022-2030. This growth can be attributed to various factors, such as the increasing number of internet users, rising disposable incomes, and technological advancements that enable seamless cross-border transactions. Further, it is estimated that the global cross-border e-commerce market size is estimated to be valued at USD 5,576.73 billion, driven by the continued growth of e-commerce and the increasing demand for international products and services.
Risks of not Using a Multimodal Visibility Platform
Not equipping the supply chain with a multimodal visibility platform can expose businesses to various risks, including loss of revenue, reduced customer satisfaction, and inefficiencies in supply chain management. These risks differ depending on the business’s role in the supply chain, and shippers, retailers, and resellers face unique challenges when visibility is limited.
Risk for Shippers:
Lack of visibility into the status and location of shipments in transit
Difficulty in identifying and resolving issues with shipments in real time
Delayed or lost shipments lead to customer dissatisfaction and lost business
Risk for Retailers:
Inability to accurately forecast inventory levels due to lack of visibility into inbound shipments
Inefficient use of warehouse space due to unpredictable inbound shipment timing
Increased likelihood of stockouts or overstocking, resulting in lost sales or excess inventory costs
Risk for Resellers:
Inability to provide accurate delivery dates and tracking information to the customer
Difficulty managing customer expectations and handling complaints about delayed or lost shipments
Negative impact on brand reputation due to poor customer experience
Benefits of having a multimodal supply chain management strategy
Here are some benefits of having a multimodal supply chain management strategy:
Increased efficiency and speed of delivery: Utilizing multiple modes of transportation can choose the fastest and most cost-effective option for each leg of the journey, resulting in the faster and more efficient delivery of goods.
Reduced costs: Optimizing your transportation methods and routes can save money on shipping costs and avoid unnecessary expenses.
Improved visibility and tracking: A multimodal supply chain management platform allows you to track your shipments in real time, giving you greater visibility and control over your supply chain.
Increased reliability and resilience: A multimodal supply chain management strategy can help mitigate the impact of disruptions such as weather events, labour strikes, or infrastructure problems by providing alternative transportation options.
Enhanced customer satisfaction: You can improve customer satisfaction and loyalty by providing faster, more efficient delivery and better communication about shipment status.
Regardless of the sector you are dealing in, whether retail, manufacturing or anything else, you can aim to achieve multimodal visibility or implement multimodal logistics quickly on tech-enabled platforms.
How Intugine transforms businesses with multimodal visibility
Multimodal visibility software helps businesses make better decisions using predictive analysis, builds trust and strong communication among stakeholders, and drives efficiency over the entire journey of different modes of transportation and warehousing.
To revolutionize the way logistics and supply chain operations run across the globe, Intugine aims to make multimodal visibility accessible to enterprises and help them gain control of volatile market conditions, delight their customers, reduce costs, and grow their business.
Intugine’s real-time multimodal visibility platform provides unified tracking of all shipments across multiple modes, helping some of the largest global enterprises with uninterrupted visibility across the surface (full truck loads, parcels). With 75+ happy customers, Intugine tracks around 10M+ trips annually across all modalities.