April 28, 2025

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Freight industry still lags in technology adoption

Freight industry still lags in technology adoption

Trigent, a technology services organization, recently conducted a survey to assess the technological preparedness and investment priorities of the freight industry. The results, along with insights from an interview with Pratapa Bernard, vice president of strategy at Trigent, showcase both the challenges and opportunities that lie ahead for logistics technology.

The survey results demonstrated that many companies don’t consider themselves fully technologically equipped. While some progress has been made, 16% of respondents still rely on rudimentary tools including Excel spreadsheets and manual phone calls, indicating a gap in digital adoption. Meanwhile, 61% operate with partially automated systems, utilizing a patchwork of disconnected solutions that often lead to inefficiencies and operational silos.

The lack of full automation is not just a technical issue but also a strategic one. Bernard explained that businesses are wrestling with how to integrate disparate technologies into a cohesive system that enhances efficiency rather than complicating workflows that employees are used to.

“A significant portion of respondents know that they have to change. Either they are getting systems in order to do so or are a work-in-progress towards being ready for the technology deployment,” said Bernard. “They are also seeing a lot of consolidation among technology providers as well, which means multiple systems could soon be working together. So I believe people are making do with what they have and getting ready for [consolidation].”

As companies work to modernize, their technology investment priorities reveal a clear roadmap for the industry’s future of integrated systems. According to Trigent’s survey, 37% of respondents cited APIs and ecosystem connectivity as their primary focus. This reflects the growing recognition that seamless data exchange between carriers, shippers and brokers is essential for technology investments to pay off. 

Bernard explained that In an industry where real-time visibility and agile decision-making can be the difference between success and failure, API integrations are no longer optional, they are imperative. 

Another takeaway from the survey is the demand for customized transportation management systems. Carriers, in particular, are keen on developing self-service systems that can streamline operations without extra human intervention. These technologies can even help mitigate talent shortages by reducing the need for manual processing.

“When we talk about talent shortages, it’s not just technology-skilled shortages, we are talking about warehouse pickers and handlers and drivers. Companies are asking themselves, where does technology support my workers, knowing I’m not going to be having that many skilled workers to choose from for my warehouse, etc,” said Bernard.

With technology supporting businesses in new offerings, Bernard described seeing many 3PLs moving more toward an integrated 4PL approach. 

“There are so many tech offerings that can easily integrate into your management systems that can help shippers with other things than finding capacity, including inventory management and last-mile logistics. Because 3PLs traditional models are seeing shrinking margins, these integrations help with other avenues of revenue building,” he explained.

Bernard followed up with that, saying that AI will help with these other revenue generators as well. He told FreightWaves that AI is no longer a question of “if” but rather “when” and “how.” Companies are increasingly exploring AI-driven solutions tailored to their specific operational challenges. However, Bernard expressed that the key to successful AI adoption lies not in simply automating existing workflows but in redesigning business processes to fully leverage technological capabilities. 

Trigent advocates a three-pronged strategy for technological advancement. The first component involves embedding AI across multiple facets of logistics operations to enhance decision-making and predictive capabilities. The second focuses on modernizing existing platforms, as businesses must upgrade their legacy systems to support modern technologies and integrations with new digital tools. The third prong calls for reimagining business processes rather than applying technology as a band-aid solution. Companies should fundamentally rethink their workflows and how technology supports them.

“We can learn from Deepseek. They did not look to optimize what was already existing in AI technology. They shoot the fundamentals of how it works. Businesses should do this too. Many say, I don’t have a bucket of money, but I want to get these things automated. Reassess the business and reimagine your entire workflows. That is very critical to you getting the automation piece right,” he said.

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