For just over half a year, logistics executive Lars Persson has served as the head of PTV Logistics in the Nordic region and the UK—a rapidly growing company that develops software for route optimization, planning, and the execution of transportation operations. Prior to that, he had extensive experience in logistics software, including as CEO of Consafe Logistics and as sales director for Descartes Systems in the Nordic region.
“It’s incredibly exciting to once again be working on route optimization solutions, since they have such a significant impact on a company’s efficiency and sustainability,” says Lars Persson, whose full title is now VP of Sales and Operations for the Nordics and the UK at PTV Logistics.
In this new role, the mission is to build an organization and sell PTV Logistics’ solutions for route optimization and planning, real-time transport visibility, and delivery management—solutions that are in increasingly high demand.
“PTV Logistics actually has forty years of experience in transportation optimization, planning, and execution. Today, we offer a software platform with solutions for both the day-to-day operational route planning and the more long-term tactical and strategic planning of transportation,” explains Lars, noting that the company has many well-known clients, including Unilever as well as major carriers such as DHL, Schenker, and CEVA Logistics.
The market for route optimization software has grown significantly in recent years due to rising fuel costs and pressure to improve customer service and environmental sustainability. According to various industry reports—including those from Gartner, Mordor, and Statista—the annual growth rate currently stands at between 15 and 20 percent.
Expected to grow rapidly
So far, PTV Logistics has remained relatively unknown in the Nordic and British markets. That is about to change. When Lars took office last October, work began on building an organization dedicated to raising the company’s profile and driving sales in the regional markets.
– Our goal is to grow by about 20–30 percent per year in the Nordic and British markets. Demand for this type of software is high, and so far we haven’t been particularly active in either the Nordic region or the UK. So expect us to have doubled our revenue in a few years,” says Lars with a smile.
Costs, Time, and Sustainability
Demand is driven by a growing focus on sustainability in the business community. However, Lars points out that the rapidly growing interest in route optimization is primarily about reducing costs and time.
– This is still primarily about improving cost efficiency and delivery accuracy. Sustainability is also important to our customers, but it’s more of a bonus effect of using route optimization software. However, given that the electrification of the transportation system will take a long time—especially when it comes to heavy-duty truck transport—smart IT solutions are perhaps the fastest way to reduce transportation-related climate impact.
Seven million trees per year
In certain industries and sectors, however, the sustainability argument is particularly strong. For example, in consumer e-commerce, public transportation, and among larger companies that have set ambitious goals to reduce their climate impact. And PTV Logistics’ own marketing communications emphasize that the company’s software generates annual sustainability benefits equivalent to the CO₂ absorption capacity of seven million trees.
– We see that sustainability issues continue to grow in importance. That is why we often highlight the impact our solutions have on the climate. “Our route optimization solution is used annually to streamline one billion kilometers of road transport, which roughly corresponds to the climate benefits of seven million new trees each year,” Lars notes, adding that PTV Logistics CEO, Steven de Schrijver, is personally deeply committed to sustainability.
Adapting to Electrified Transportation
The electrification of transportation systems is a reality, even if it is taking time. To keep pace with this trend, PTV Logistics has already adapted its solutions to include route planning for electric vehicles as well.
– We’ve come quite a long way in terms of route optimization for electric vehicles, ranging from vans to heavy-duty trucks. We’re seeing that package deliveries using electric vehicles work well in densely populated areas; however, it will take time before we see widespread use of electric heavy-duty transport, as this requires a more developed infrastructure. Generally speaking, it’s more complex to optimize electrified transport, since it’s influenced by many more parameters than traditional, fossil-fuel-powered transport,” says Lars, noting that factors such as driving style, weather, road surface, and charging infrastructure significantly increase the planning challenges when it comes to electrified vehicles.
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Interview and text by Stefan Karlöf
