Adopting deep technology to unlock freight efficiencies

A pilot by Digital Catapult shows that applying deep technology to the logistics sector can overcome many of the sector's biggest challenges. But organisations must embrace a culture of experimentation and openness to change. Tim Lawrence, director of the Digital Supply Chain Hub at Digital Catapult, explains further

The logistics sector is at a critical juncture. With mounting pressure to decarbonise and operate more efficiently, the industry must embrace deep tech solutions. Digital Catapult’s recent pilot project titled the Logistics Living Lab provides a powerful case study on the value of deep technology, particularly shared digital infrastructure, in reshaping the logistics landscape.  

By leveraging distributed ledger technology (DLT), Internet of Things (IoT) devices, and smart algorithms, the initiative demonstrates how collaboration and innovation can drive significant carbon reductions and cost savings, playing a pivotal role in the future of the sector. It is these applications of deep tech that will be critical to decarbonising the sector and unlocking growth opportunities in the long-term.  

The case for decarbonising logistics 

Transportation and logistics are central to the global economy but come with a steep environmental cost. In the UK alone, the sector contributes 31 per cent of all transport-related emissions, with inefficiencies such as empty vehicle loads amplifying the problem. According to the Department for Transport,  30 per cent of truck miles travelled on UK roads are run empty, and this inefficiency not only wastes resources but also accelerates the sector’s carbon footprint. 

Considering this, decarbonisation is no longer a choice but a necessity. Achieving this goal however requires overcoming entrenched challenges, such as fragmented operations, insufficient infrastructure, and rising operational costs. Digital Catapult’s pilot illustrates that deep tech can play a crucial role in bridging these gaps, when it’s applied correctly. By collaborating with our consortium partners Incept Consulting, Fuuse, AF Blakemore, Pairpoint and Microsoft, we have demonstrated the value of deep tech to decarbonise logistics operations and reduce costs, boosting collaboration and efficiency.  

Deep tech: A catalyst for collaboration and efficiency 

The pilot project, executed in partnership with AF Blakemore & Son and supported by UK Research and Innovation (UKRI), exemplifies the potential of shared digital infrastructure. Using DLT, IoT, and advanced algorithms developed by Fuuse, the initiative aimed to optimise vehicle usage and routing. The results were compelling, achieving a 37 per cent reduction in transport costs, and a nine per cent improvement in vehicle fill rates. 

 The key to these outcomes lies in the collaborative nature of the technology. By enabling organisations to share real-time data on truckloads and routes, the system minimises empty trips and maximises efficiency. This interconnected approach marks a significant departure from traditional siloed operations, fostering a more sustainable and streamlined logistics ecosystem, showcasing the value of Digital Catapult convening capabilities in the logistics sector and delivering innovation and technology consultancy.

The power of shared infrastructure  

At its core, deep tech including shared digital infrastructure, represents a paradigm shift for logistics. It integrates multiple elements of the supply chain, offering transparency and actionable insights to meet growing commercial demand for greater transparency in the supply chain and data to solve operational bottlenecks.  

Internet of things (IoT) devices for example provide real-time tracking and monitoring of vehicles, while distributed ledger technology (DLT) ensures secure and immutable data sharing between parties. When combined, these technologies empower organisations to make data-driven decisions, reducing waste and emissions, which is critical as Digital Catapult continues to support critical economic sectors to decarbonise and adopt deep tech innovation to unlock new opportunities.  

Looking ahead: Scaling deep tech in logistics 

The Digital Catapult pilot is an insight into what’s possible when deep tech meets the logistics sector. However, scaling these innovations requires a concerted effort, and organisations must embrace a culture of experimentation and openness to change. At the same time, the technology ecosystem must continue to develop solutions that are scalable, interoperable, and accessible, which is what has been achieved on the Logistics Living Lab programme.  

 Beyond carbon reduction, optimised logistics can alleviate traffic congestion, reduce fuel consumption, and enhance supply chain resilience. For a sector valued at £163 billion in the UK, these improvements represent not just environmental benefits but also significant economic opportunities. Applying deep tech solutions to improve the industrial supply chain resilience is testament to the value of the solution and the commercial opportunity it presents to logistics businesses.  

The logistics sector stands at the forefront of a profound transformation. By applying deep technologies like DLT and IoT, the industry can achieve a rare synergy between sustainability and efficiency. The Digital Catapult pilot provides a blueprint for this transformation, demonstrating that collaboration and innovation are key to overcoming the sector’s biggest challenges, and the success that can be achieved by convening capabilities from across technology, innovation and commercial sectors.  

As the logistics sector embraces these technologies, it has the potential to lead the way in the global transition to a low-carbon economy, and any business interested in learning more about the programme can read more here.