Looking ahead: Transforming transport by 2030

2030 transportation transformation assessment

As the transportation industry evolves, organizations will likely need to reconfigure their operations to remain competitive and take advantage of emerging technologies and capabilities.

Deloitte's Future of Freight survey shows that manufacturers and transportation providers are already rethinking how they operate; looking to outsource noncore capabilities; and making acquisitions, technological investments, and strategic partnerships to ensure operations and service offerings align with the current environment and beyond.

Our Future of Freight research shows that 60% of transportation executives plan to outsource more of their noncore capabilities, while 59% plan to add new capabilities.¹

This assessment looks at some of the key issues that transportation organizations should consider as part of their transformation strategy.

Core capabilities

The perennial supply chain pressures of boosting productivity, supporting innovation, and moving faster—with more agility—become even more important as new business models, markets, and competitors emerge across the transportation industry. Taking advantage of rapid digital innovation such as dynamic digital supply chain networks will be key.

Now, more than ever, companies need a comprehensive view of their operations so they can optimize their business processes.

The following areas are critical to reshaping your supply chain ecosystem and better aligning core capabilities.

Synchronized planning
Supply networks are increasingly complex. Synchronized planning can help you to develop integrated business strategies and supply planning solutions that coordinate the flow and delivery of products and materials through the supply network from end to end, to optimally balance total cost while meeting rising customer expectations.

Logistics and distribution
Moving the right product to the right place at the right time underpins operational effectiveness. Prioritize thinking about how to reshape your distribution network, define your logistics outsourcing strategy, and optimize your transport and warehouse operations within the context of shifting core capabilities.

Supply management and digital procurement
Are you capturing the analytics you need to monitor spend management and deliver increased cost savings at a faster pace? Digital tools, category management capability, and specialist knowledge give you the insights to optimize return on investment on any third-party procurement and spending.

Manufacturing strategy and smart operations
Drive productivity and asset efficiency by implementing innovative Industry 4.0 solutions and building digital capability to drive operational excellence. From footprint rationalization and lean transformation through to extended manufacturer collaboration and operational integration, look to achieve enduring transformation through technology-enabled change.

Product strategy and lifecycle management
Optimizing portfolio management, new product development, cross-functional collaboration, organization efficiency, product data management and technology solutions for product lifecycle management are all critical factors in a successful transportation transformation strategy.

Supply chain transformation
Navigate continuous change and uncertainty by increasing agility within your supply chain. Define, design, and execute supply chain and operational synergy programs across the whole of your supply network that take advantage of digital-first solutions and build in flexibility and scalability to keep pace with your own transformation.

Noncore capabilities

Transportation leaders need to identify how to optimize the time and resources spent on lower-value activities to allow for more focus on areas of critical and differentiated expertise. Accessing solutions that are continuously updated and can deliver both capacity and capability on demand gives you the skill set and capacity needed to rapidly modernize and run these areas of your business—and to ensure transformation sticks.

Below are some of the key considerations for optimizing and outsourcing noncore capabilities as part of a successful transformation strategy.

IT, cloud, and infrastructure services
Better meet your organization’s ongoing technology needs through strategically managing and enhancing technology applications, digital, cloud, and infrastructure. Consider managed services and package solutions to continuously tap into the latest innovation, effectively modernizing legacy systems to ensure impactful outcomes.

AI, data management, and analytics
Deliver improved analysis and insights by leveraging advanced AI tools and analytics platforms. Enhance your data capture and application through intelligent automation and task and process mapping and mining functionalities. Benefit from improved knowledge sharing and early detection of trends and anomalies to accelerate decision-making and prevent fraud.

Tax and finance
In the digital era, business model evolution is accelerating more quickly than ever. This drives greater integration between the C-suite and the tax and finance teams to create a progressive environment that can forecast and scenario model more effectively. Routine compliance and reporting can be automated or devolved to hybrid operate players, freeing up tax and finance expertise to focus on value-add.

Business process automation
Both horizontal and vertical critical-business functions may benefit from industry-specific process enablement solutions. Continuous access to new technologies and evolving platforms in areas such as supply chain, HR, talent, finance, and marketing integrates your people, processes, and technology know-how more effectively to generate improved business outcomes.

Endnotes

¹ Larry Hitchcock et al., The future of freight: Transforming the movement of goods, Deloitte Insights, November 2022.