Why T&L Is Transitioning to “as-a-Service” Operating Models

Transportation and logistics (T&L) companies deploy mobile devices to keep employees connected and operations moving in warehouses, on loading docks, and on the road. Mobile T&L solutions allow teams to automate by digitizing processes and improve productivity. They also give the organization real-time visibility and greater accuracy by capturing data where work occurs and sharing it with the warehouse management or transportation management system immediately. However, a growing enterprise mobility fleet can also mean more work for the company's internal IT team, taking time away from other projects that support the business's strategic objectives. As a result, more T&L companies are considering as-a-Service offerings to simplify technology management and support.

What Is the as-a-Service Operating Model?

Offerings like DaaS or IaaS replace technology ownership and all the responsibilities that go with it with an ongoing service. Rather than making a large capital expenditure (CAPEX) in technology and turning over maintenance to the in-house IT team, a managed services company provides devices, infrastructure, services, and support for a predictable monthly, quarterly, or annual fee.

But a provider offering technology with this model does more than lease technology, adding value at each stage of the solution's lifecycle:

• The provider works with the T&L, 3PL, contract logistics, or managed transportation company to identify the devices or infrastructure it needs, then procures, configures, and deploys the technology.
• The provider monitors and manages devices or infrastructure with tools like mobile device management (MDM) or unified endpoint management (UEM). The provider leverages those tools for remote updates and patches for fast response, efficiency, and cost control.
• The as-a-Service provider stays apprised of operating system (OS) upgrades and security patches, handling them in a timely manner and without interrupting workflows to enhance device performance and user experience.
• The provider can also provide help-desk support, and when hardware repairs are necessary, depot or on-site service.
• At device end of life, the provider can handle secure data disposition and hardware recycling.
• The model can also scale with the business. If a company opens a new facility, adds vehicles, or expands its workforce, the provider can add devices or infrastructure by adapting the services agreement.

As-a-Service Models That Benefit T&L Companies

Various technologies are available through managed models, but these two can benefit T&L companies the most:

Device-as-a-Service (DaaS)

DaaS provides T&L companies with the mobile devices and on-site hardware they need without the upfront cost or in-house maintenance burden. The DaaS provider will procure, configure, deploy, monitor, maintain, and replace devices according to an agreed service-level agreement (SLA). Support can include remote troubleshooting and issue resolution, help desk services, depot repair, device replacement, and recycling.

Organizations using the model see clear advantages. According to IDC's 2024 PC-as-a-Service Satisfaction and Value Survey, organizations say DaaS helps them keep better track of their IT assets (34%), frees IT resources from daily device management (32%), and provides a clearer understanding and predictability of per-user costs (32%).

Infrastructure-as-a-Service (IaaS)

IaaS extends the model beyond individual devices. A provider can assess, design, install, and manage the network infrastructure. For T&L companies, that may include site surveys and installation of cabling, routers, access points, and other networking components. The offering can also include managed infrastructure services that help companies maintain reliable connectivity across warehouses, distribution centers, yards, and other operational environments.

Benefits of DaaS and IaaS Offerings

When T&L companies are considering a shift from a technology ownership model to an as-a-Service offering, they'll find several operational and financial advantages.

Reduced IT Burden

When a company deploys hundreds of devices and builds a network for T&L facilities and workers on the road, IT management and maintenance can monopolize the IT team's time. With a managed model, the provider handles that work while giving the internal IT team visibility.

Asset Visibility

Because as-a-Service providers have remote monitoring and management capabilities, they can provide this data to the internal IT team to make it easier to locate devices during shift changeovers, assist with loss prevention, and increase asset accountability. Asset visibility can directly translate into greater employee productivity by eliminating the time it takes to search for and troubleshoot devices.

Less Downtime

Troubleshooting takes time. If a warehouse worker says, "The scanner is slow," IT often must determine whether the root cause is the application, Wi-Fi/network, the backend system, or the device itself. The as-a-Service provider takes that burden from the IT team and resolves the issue as promised in the SLA with the company.

Predictable Costs

Traditional ownership can lead to unexpected repair and replacement costs. A managed device or infrastructure agreement replaces uncertainty with a predictable recurring fee, helping T&L companies plan technology spending more accurately.

Scalability

T&L operations can change quickly as companies add customers, facilities, vehicles, or employees. Agreements for managed services can make it easier to add or retire devices as requirements change. Additionally, standardized configurations simplify deployment when a company needs to expand or replace equipment.

Compliance

Technology plays an important role in meeting transportation requirements, such as electronic logging device (ELD) requirements administered by the Federal Motor Carrier Safety Administration (FMCSA). As-a-Service offerings keep T&L teams connected and streamline tracking, inspection, and documentation processes.

What to Look for in an as-a-Service Provider

Choosing a provider requires more than comparing monthly prices. T&L companies should look for a partner with industry and technology expertise and the ability to manage the complete technology lifecycle. Key capabilities include:

• Remote monitoring and management
• A team of technicians that can deploy and manage large networks or device fleets
• Comprehensive lifecycle services
• A knowledgeable help desk
• The ability to support operations across multiple locations and the flexibility to adapt to changing operations
• A track record of successful partnerships with organizations that have complex technology environments

Companies will find that the as-a-Service model can reduce IT workload, improve device availability, control costs, and support growth. It also helps operations simply run smoother. Levata assists IT teams by monitoring the interaction between enterprise applications, wireless networks, and mobile devices, so that they can quickly identify the root cause of frontline technology issues, reducing downtime, eliminating finger-pointing, and ultimately improving frontline user experience and productivity.

Contact us to evaluate your device and infrastructure needs and explore how the as-a-Service model can benefit your business.