Freight Management: The Evolving Role Of Technology

Jarle Kjelingtveit is a specialist in Freight Management and has accumulated over two decades of experience in the industry. Kjelingtveit started his career as a Forwarder at Conti-Nor. Subsequently, he took on the role of Supply Chain Manager in Norgesgruppen. In the course of his final years with the company, he transitioned into the position of Manager of Transport and Projects. Kjelingtveit departed from Norgesgruppen in 2020 to take up his current position at Coop Norge

In an exclusive interview with Logistics and Transportation Review, Jarle Kjelingtveit shared his invaluable insights concerning the future of the industry, the ensuing challenges and the possible solutions.

Can you provide me a brief overview of your professional background leading to your current role as head of transport at Coop Norge?

I have accumulated over three and a half years of experience in my current role, where I oversee outbound operations for Coop Norge. Prior to this, I dedicated 12 years to a prominent retail company in Norway called Norgesgruppen. In my early career, I worked for Volvo Trucks Corporation, where I had to oversee the inventory and ensure availability of the stocks.

Throughout my career, I have been actively involved in transportation logistics and international sourcing which led me to gain a profound comprehension of the field.

Can you please talk about the challenges and disruptions you are facing in your operations, and how your experience in freight management is helping you navigate through the challenges and reinforce supply chain?

Over the past four years, we have witnessed a shift in the challenges encountered within our industry. Traditional challenges are steadily diminishing, and in the coming years we will have a set of fresh challenges.

In 2023, I encountered challenges navigating through the frequent shifts in weather patterns which led to disruptions, especially in domestic transport. These shifts are happening across Europe and are greatly affecting the transportation logistic sector. This is also impacting labor, leading to continuous increase in both labor and transportation costs.

Additionally, the Russo-Ukrainian war that began in 2022 has also had a major impact on European market. The war caused Russian and Ukrainian drivers to exit from their jobs, which created a significant gap in the market demand. Consequently, this uncovered the fragility of European continent and how susceptible our market is to outer factors. This single phenomenon effectively limited the options available to the entire continent, leaving it with only few options to consider.

Could you share about your experience in International Freight Management and how it is currently contributing to your work?

In freight management, having a thorough grasp of the Demographic and Geographic factors is crucial. This comprehension, including the border situation and trade routes can help us device strategy to enter different markets while mitigating the risks. This expertise plays an important role in enhancing supply chain and making seamless transfer of goods.

How technologies such as telematics and route optimization software can enhance the resonance of freight operations?

Telematics GPS is a technology that is used to monitor and track vehicles, assets, or equipment in real-time. The key of this technology lies in seamless integration, which optimizes capacity and routes while also controlling transport costs. Concurrently, this reduces fuel consumption and vehicle emissions, which greatly benefits the environment.

What according to you are the key considerations when dealing with international trade regulations, customs procedure and compliance with international shipment?

Sourcing from different countries and regions in the international space comes with unique challenges. Each country and region has its own policies and trade regulation, all of which influence our trade practice. Therefore, dealing internationally can be vastly different experience depending on the country we are sourcing from. On a bright note, trading within Europe and European Union is not much of a hassle.

"In freight management, having a complete control over the value chain and real-time visibility is gaining importance"

Additionally, we consider the geopolitical and environmental factors as well. Lately, Russo-Ukrainian war has led governments and world society to implement several new regulations. These regulations have sternly dictated the streamlining of trade between countries.

Furthermore, the environmental factors can include decreasing water in Panama Canal, Barges in European rivers, extreme heats in summer season and wild fires, all severely affecting the trade regulations and procedures.

What are some of the emerging trends that can impact the future of freight management and logistics?

In freight management, having a complete control over the value chain and real-time visibility is gaining importance. This creates more efficient and cost effective solutions which gives your company a competitive edge over others.

Another factor to consider is tightening of regulations in Europe and U.S. These regulations are greatly affecting the decision making process as they put additional demands on the company.

Furthermore, international transport buyers are not only concerned about logistics but also social factors, such as working conditions and payments.

Would you like to give any advice for other leaders and CXOs in this space?

I encourage leaders to broaden their perspective and think beyond the conventional methods. Think of the worst case scenarios and possible undue risks that can affect the company in future. This can prepare leaders to tackle unforeseen situations and minimize the damage such cases can cause to companies