From fuel costs and delivery windows to shifting customer expectations, transport and logistics are facing new levels of pressure. Companies need to move goods faster, more transparently, and at a lower cost, all while managing complex, often global, operations.

So, what’s next?

Let’s take a look at key trends in Transport Management, emerging technologies, and how AI could shape the future of logistics, along with insights from AlfaPeople experts working directly with companies implementing Transport Management in Dynamics 365.

Cost efficiency is the ongoing pressure

“Companies are looking at every cent,” said Annette Ravn, senior consultant at AlfaPeople. And he’s right. In an environment shaped by inflation, fuel volatility, and supply chain disruption, cost efficiency remains the top priority.

This means:

• Reducing manual freight calculations
• Avoiding invoice discrepancies
• Optimizing delivery routes and load planning
• Bringing pricing transparency into customer quotes

Solutions like Transport Management in Dynamics 365 already support this through rate automation, reconciliation tools, and carrier performance tracking. But the future lies in smarter, AI-supported tools that not only show where you’re spending but also predict where you’ll overspend.

Freight as a profit driver

What used to be a cost center is becoming a revenue stream.

According to AlfaPeople’s Annette Ravn, “More companies are earning a margin on freight. They charge customers slightly more than the actual transport costs, and it’s becoming a common strategy.”

With Transport Management providing the data and transparency to set fair and consistent freight pricing, businesses can utilize logistics as a value-added service. Especially when integrated with Dynamics 365 Sales and Finance, this provides end-to-end visibility into customer profitability, including transportation costs.

Last-mile delivery as a differentiator

Amazon has reset expectations. Whether in B2C or B2B, last-mile delivery, the final step from the distribution center to the customer, is becoming a battleground for competitive differentiation.

That means:

• Optimizing routes for time, cost, and emissions
• Tracking deliveries in real time
• Communicating proactively with customers

Companies that master the last mile will gain an edge in both customer loyalty and operational efficiency. This is where modern Transport Management systems will evolve to integrate more advanced route planning, real-time updates, and even AI-based delivery delay predictions.

AI in Transport Management: What´s next?

While Dynamics 365 currently doesn’t offer native AI features within Transport Management, the potential is clear.

In the near future, AI could support:

• Predictive delivery performance based on weather, traffic, and past delays
• Dynamic rate modeling based on demand, capacity, or market conditions
• Autonomous load balancing to optimize carrier use
• Smart shipment routing integrating EV limitations, emissions targets, and delivery windows

As Gartner notes, AI is expected to reshape supply chains by increasing automation and enhancing decision-making with real-time data and insights (Gartner – Future of Supply Chain AI).

AlfaPeople expects some of these capabilities to eventually integrate into Microsoft’s ecosystem, either through Power Platform, Copilot features, or third-party extensions.

Electrification and sustainable routing

Another rising trend is the transition to electric vehicle fleets. In countries like Switzerland, postal services have already transitioned to electric vehicles (EVs), driven by rising fuel costs and sustainability targets.

This shift will affect:

• Load planning (due to range constraints)
• Route optimization (charging station availability)
• Cost modeling (electricity vs. fuel rates)

Modern Transport Management systems must evolve to incorporate EV-specific logic into their planning models. It’s not just a green trend; it’s a cost model transformation.

Real-time visibility with Power BI

Finally, real-time reporting and KPI dashboards are becoming essential to run lean, responsive logistics.

“With Power BI in Dynamics 365, companies get instant access to performance data,” says Shala. These insights include:

• Delivery lead times
• Carrier performance metrics
• Freight cost variance
• Load efficiency per route or zone

Having these dashboards embedded in your ERP environment empowers continuous improvement across teams.

Final thoughts

The future of Transport Management lies in data, automation, and adaptability. Companies that act now, by centralizing logistics, automating freight flows, and preparing for AI-driven innovations, will be the ones to thrive in tomorrow’s supply chain environment.Contact us to schedule an informal meeting and discuss how to future-proof your transport and logistics setup with Dynamics 365.