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As Trucking's Technology Market Grows, So Too Does the Need for Seamless Connections Between Disparate Systems

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For decades, trucking and logistics companies have been investing in software and technologies to run their businesses more efficiently, improve safety and ensure compliance with government regulations.

Despite those clear benefits, this proliferation of technology has created a challenge of its own: Modern transportation companies must be able to effectively utilize data flowing from a growing number of discrete applications and systems.听

To alleviate this problem, the industry鈥檚 technology vendors continue to build integrations to connect data streams from transportation management systems and various other back-office software programs, as well as the expanding array of technologies deployed in truck cabs, such as telematics systems, electronic logging devices and navigation software.



These technology integrations 鈥 links between computers or computer programs that allow them to 鈥渢alk鈥 with each other 鈥 can connect fleets鈥 various in-house technologies and also externally link them with partners鈥 systems. Large technology providers often have hundreds or thousands of integration partners, which can even include rival technology firms.

鈥淲e鈥檙e trying to merge two systems together and make them work together in a way that reduces the complexity for the end user,鈥 said Dacia Gulledge, product manager of interfaces at McLeod Software.听
That often means connecting third-party systems that companies use for business-critical functions such as paying carriers and enabling messaging conversations, she said.

Integrations ease information flow and eliminate manual data entry while improving business management practices. These integrations can connect a variety of complex systems, but the goal is quite simple.

鈥淎t the end of the day, we are sending data from one system to another,鈥 said Chris Orban, vice president of data science for Trimble Transportation.听

The streamlined data sharing reduces the potential for human error and improves fleets鈥 operational accuracy.

鈥淚f I have five core systems with which I鈥檓 working and there isn鈥檛 an integration between them, I have people essentially doing data entry into five applications,鈥 said Larry Kerr, president of EBE Technologies. 鈥淥bviously, that鈥檚 going to slow things down, it鈥檚 going to cost more in labor, and the more you touch data, the more likely it鈥檚 going to be wrong.鈥

Integrations can ease a variety of other functions, including trailer or shipment tracking.

鈥淲e already have done the heavy lifting of connecting to all the telematics devices,鈥 said Dan Cicerchi, vice president and general manager of transportation management at Descartes. 鈥淲e walk [carriers] through the information that we need to then activate and make available their data for the shipments.鈥澨

Some transportation companies build their own digital tools customized to meet their specific needs.听

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Tech vendors are connecting management and visibility software with drivers' mobile devices. (Descartes)

NFI evaluates every new need that arises to determine whether to purchase a vendor鈥檚 digital solution or build their own product, said Mike Hayden, vice president of transportation at the trucking and logistics provider.

鈥淥ur transportation ecosystem has really expanded as we add different vendors, new products and services,鈥 he said. 鈥淲e were finding that a dispatcher or a driver manager or logistics supervisor would start their day and suddenly they鈥檙e having to open up 15 browser windows to get into all of the different websites.鈥澨

The company鈥檚 technology teams recently built their own central system to 鈥渃ombine all of these different pieces to give the operators the information that they need right on one screen.鈥
NFI, based in Camden, N.J., ranks No. 16 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.

Integrating with carriers鈥 custom platforms or apps usually isn鈥檛 much more work than meshing with technology vendors鈥 products, Trimble鈥檚 Orban said, because most of the in-house systems are built on a major vendor鈥檚 base software.

Creating and Maintaining Integrations

Some integration data is exchanged via methods such as secure file transfer protocol (SFTP), comma-separated values (CSV), hypertext markup language (HTML) or electronic data interchange (EDI). The most modern method is via an application programming interface (API).

APIs have transformed the digital space and have become essential for many modern technologies to function properly. A challenge with APIs is that they have a variety of fields, but the benefits outweigh the challenges, said Sriram Nagaswamy, vice president of engineering at FourKites.听

鈥淲hen we started out [with integrations], the whole process was very manual鈥 and it could take a week to complete one, he said.听

Five years ago he had to support a variety of different file types, but now 90% of FourKites鈥 integrations are through APIs.听

鈥淭he primary reason why everybody just loves APIs is that they have simplified extremely archaic industries,鈥 Nagaswamy said.

EBE published its APIs so integration partners can pull the information that they need.

鈥淭hat allows them to pretty much work without EBE being involved,鈥 Kerr said.

Even with APIs, integrations take time to set up and 鈥渃an be challenging, because a lot of times you have things that seemingly fit together but yet don鈥檛 fit,鈥 said Robert Brothers, vice president of product development at McLeod Software.听

Plus, the last few years have brought a notable increase in the number of available 鈥減oint solutions鈥 鈥 software or apps that perform specific services, including loadboard and driver workflow apps.

鈥淲e鈥檝e seen an explosion in the number of companies trying to put a new solution into the marketplace,鈥 he said.

Ongoing maintenance to update integrations when one partner changes part of its connected data stream also takes time, and 鈥渃ertainly has become just as significant to plan around鈥 as initial integration implementation, said Matt Battista, senior vice president of information technology at NFI.

New regulatory measures such as ELD mandates and intensifying concerns about cybersecurity also add complexity.

鈥淎dding layers of security can often cause us to have to revisit integrations that we鈥檝e already done and have to enhance the way they function and make them more secure,鈥 McLeod鈥檚 Gulledge said. 鈥淩egulatory changes come into play with maintenance as well.鈥

Tech developers that build these integrations report only tapping into data streams that customers feel comfortable sharing. For example, fleets initially might hesitate to share sensitive information such as pricing with tech vendors.听

鈥淲hen it comes to our data and what we want to specifically share with a vendor or with our partners, we just want to make sure that we鈥檙e doing that in the right way and we have control over what鈥檚 important to us,鈥 NFI鈥檚 Battista said. 鈥淚n this world of cybersecurity, it鈥檚 super important that we鈥檙e careful in how we are sharing that information.鈥

Integrations don鈥檛 simply involve meshing data streams. Significant work first goes into building trust with customers before they will even consider collaborating and sharing data with vendors, Trimble鈥檚 Orban said.

Deciding whether to integrate and with whom has taken on an interesting dynamic in the highly competitive transportation field. Mergers and acquisitions have complicated data sharing among technology suppliers that are both integration partners and competitors, but in many cases, these vendors have concluded that 鈥渃oopetition鈥 is necessary to best serve their customers.

鈥淚n the end, we gain more by working together,鈥 McLeod鈥檚 Brothers said. 鈥淲e don鈥檛 want to eliminate customers that have [other vendors鈥橾 products from being able to buy our product, so you just have to have that understanding that it鈥檚 in both of our interests to work together.鈥

The same is true on the fleet side.

鈥淚 think what they realize now is the visibility that comes with cooperating with multiple vendors is actually more valuable than operating within silos,鈥 FourKites鈥 Nagaswamy said.

Data Standards

Conversations are taking place across the industry about tech and data standardization to increase systems鈥 compatibility and reduce or eliminate the need for integrations, but 鈥淚 haven鈥檛 seen any real or significant progress at this point,鈥 NFI鈥檚 Hayden said. 鈥淭hat鈥檚 really what forced us down the path of building it ourselves, because we didn鈥檛 see something coming in place in the immediate future that was going to solve it for us.鈥

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Nagaswamy said transportation is 鈥減rogressing toward something like鈥 standardization, which will further automate technologies and remove manual intervention. However, more time and investments are needed to achieve standardization.

Integrations boomed in the last couple of years, and vendors predict they will remain important for years to come as more software, apps and systems come to market.听

鈥淐ertainly, there will be more capabilities,鈥 Cicerchi said. 鈥淚 think you鈥檒l just have a bigger proliferation of other devices that are now able to share pertinent information about a particular shipment.鈥

And the value of integrations for improving efficiency is only expected to grow as transportation demand increases and more attention turns to enhancing the supply chain.

鈥淚 really get excited about the concept of a connected supply chain,鈥 Orban said. 鈥淲e have to make this exchange of data easier and faster so that we can do business better.鈥

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