With the freight industry in a continued difficult market, carriers and 3PLs have had to invest in technology to find more efficiency in slim margins.
\nBrad Hicks, executive vice president of highway services and executive vice president of people at J.B. Hunt, says companies that don\u2019t connect their investment in technology with their investment in people will come out behind. \u201cIf you don\u2019t have that proper balance of people and tech working together and complementing each other, then you\u2019re probably behind,\u201d Hicks said. \u201cWe use and leverage the connectivity of (J.B. Hunt) 360\u00b0 to create value for our customers. It\u2019s technology that provides the data, but it\u2019s the people who create the solutions.\u201d
\nDespite the tough freight environment, Hicks says, it\u2019s vital for transportation companies to continue to invest. \u201cWe\u2019ve made investments into our own capabilities, but we also have to try to create value for our people and our customers,\u201d Hicks said.
\nA recent survey by McKinsey & Co. found that 87% of global shippers and logistics providers have maintained or increased investments in digital technology over the past three years. Transportation companies have poured billions of dollars into new technology to solve some of the industry\u2019s greatest challenges.
\n\u201cFreight and transportation businesses were underinvested in technology, with a lot of manual processes,\u201d Hicks said. \u201cTech created disruption; we saw key elements where technology has helped logistics and supply chains. Now we\u2019ve kind of been through a renaissance.\u201d
\nAccording to Hicks, however, with those disruptions and changes come new problems and conversations, including the distribution of labor and the reorganization of processes.
\n\u201cThe reality is, technology can\u2019t solve all the problems. The idea that we could eliminate all the people is far-fetched,\u201d Hicks said.
\nPost COVID-19, ever-changing conditions have forced many companies to shift their operations. According to Hicks, cost, capacity and service remain the most important factors, and the key to optimizing and creating value for customers is investing correctly. \u201cMaybe we were too manual, and then we invested heavily in technology, but now we\u2019re back to center. We let cost, capacity and service drive where we make our investments,\u201d Hicks said.
\nAfter revolutionizing the logistics space with the introduction of the load board platforms Carrier 360\u00ae and Shipper 360\u00ae, J.B. Hunt set its sights on creating long-term value.
\n\u201cEventually, we introduced a new mission statement, which was to \u2018create long-term value for our people, our customers and our shareholders.\u2019 We were very intentional about putting people first,\u201d Hicks noted.
\nThe value provided by companies like J.B. Hunt and other carriers and 3PLs comes not only from software or other technology, but from trusted expertise. As Hicks said, \u201cCustomers don\u2019t buy our products and services for the 90% of the time that things go as they\u2019re supposed to. They want our experience for the 5 to 10% of the time that complications arise.\u201d
\nIn finding the balance between the factors of cost, capacity and service, it\u2019s service that best distinguishes one provider from another. \u201cWe make hard look easy,\u201d said Hicks. \u201cWe want to overcome those challenges many times before a customer even realizes that they\u2019ve occurred.\u201d
\nRegarding future developments, Hicks believes that AI will be a major factor in coming years. \u201cWe\u2019re all in different spots with respect to that journey. Some of us are already using AI in certain applications and evaluating what applications make sense for us in the future, and what makes sense to do manually,\u201d he explained.
\nThis balance of investment in technology and focus on people drives what J.B. Hunt seeks to accomplish in all aspects of its operations, from in-house logistics software to AI utilization to equipment upgrades for drivers.
\n\u201cWith 23,000 drivers that work with J.B. Hunt, it\u2019s important for us to make them as safe as we can, for their own benefit and for the public. With features like forward radar technology, inward-facing cameras and blind spot detectors, we invest in making sure that our drivers are safe,\u201d Hicks said.
\nThe J.B. Hunt 360\u00b0\u00ae platform and the DRIVE app are just a few of the products that highlight J.B. Hunt\u2019s commitment to people-oriented solutions.
\n\u201cWe believe strongly that if we invest in our people, equip our people and empower our people, then they\u2019re positioned to do incredible things in taking care of our customers,\u201d Hicks said.
\nClick here to learn more about J.B. Hunt Transport.<\/p>\n","protected":false},"excerpt":{"rendered":"
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