“Smart IT solutions are the fastest way to reduce climate emissions from transport”
For just over six months, logistics profile Lars Persson has taken on the role of responsible for PTV Logistics in the Nordic region and the UK – a fast-growing company that develops software for route optimisation, planning and execution of transport. Prior to that, he worked for a long time with logistics software, including as Sales Director for Consafe Logistics and for Descartes Systems in Europe.
“It’s incredibly exciting to once again be working with route optimisation solutions, as they have such a tangible effect on companies’ efficiency and sustainability,” says Lars Persson, whose full title is now VP Sales and Operations Nordics and UK, PTV Logistics.
In the new role, the assignment is to build an organisation and sell PTV Logistics’ solutions for route optimisation and planning, real-time transport visibility and delivery management. Solutions that are increasingly in demand.
“PTV Logistics actually has forty years of experience in transport optimisation, planning and execution. Nowadays, we offer a software platform with solutions for both the operational route planning that is done daily and the more long-term tactical and strategic planning of the transports,” explains Lars, mentioning that the company has many well-known customers, including Unilever as well as major carriers such as DHL, Schenker and CEVA Logistics.
The market for route optimisation software has grown strongly in recent years due to rising fuel costs and a push for better customer service and climate sustainability. According to various industry reports (including from Gartner, Mordor, and Statista), the annual growth rate is currently between 15-20 percent.
Accelerating Growth in the Nordics and UK
So far, PTV Logistics has been fairly anonymous in the Nordic and UK markets. This will change now. When Lars took up his position in October last year, work began on building up an organisation that will work to make the company more well-known and drive sales in the regional markets.
“The goal is for us to grow by about 20-30 percent per year in the Nordic and UK markets. The demand for this type of software is high and so far, we have not been very active in either the Nordic region or the UK. So, expect us to have doubled our turnover in a few years,” says Lars with a smile.
Costs, Time and Sustainability
Demand is driven by an increased focus on sustainability in the business sector. But Lars points out that the rapidly increasing interest in route optimisation is primarily about reducing costs and time.
“This is still mostly about increasing the cost-effectiveness and delivery precision. Sustainability is also important to our customers, but it’s more of a bonus effect of using route optimisation software. However, given that the electrification of the transport system will take a long time, especially when it comes to heavier truck transports, smart IT solutions are perhaps the fastest way to reduce your transport-related climate impact.
Seven million trees per year
However, in some industries and sectors, the sustainability argument is particularly strong. For example, for e-commerce with consumers, in public transport and for larger companies that have set tough goals to reduce their climate impact. And in PTV Logistics’ own marketing communication, it is emphasised that the company’s software creates a sustainability benefit equivalent to the ability of seven million trees to absorb CO₂ annually.
“We see that sustainability issues continue to increase in importance. That is why we often emphasise the importance of our solutions for the climate. Our route optimisation solution is used annually to streamline one billion kilometres of road transport, which roughly corresponds to seven million new trees in climate benefits every year,” says Lars, mentioning that PTV Logistics’ CEO, Steven de Schrijver, is personally strongly committed to the sustainability issue.
Adapting for electrified transport
The electrification of transport systems is a fact, even if it takes time. To meet this development, PTV Logistics has already adapted its solutions for route planning electric transports as well.
“We have come quite far when it comes to route optimisation of electric vehicles, everything from vans to heavy trucks. We see that parcel deliveries with electric vehicles work in densely populated areas, however, it will take time before we see widespread use of electrified heavy transport, as a more developed infrastructure is required. In general, it is more complex to optimise electrified transport, as they are affected by many more parameters than traditional, fossil-fuelled transport,” says Lars, mentioning that factors such as driving style, weather, road surface and charging infrastructure significantly increase the planning challenges for electrified vehicles.