Logistically Speaking Learning Center

Transportation challenges to the supply chain

Transportation challenges to the supply chain

Few activities in your supply chain have a significant impact on your business, like your transportation selection. Delivery techniques ensure that deliveries to and from your business go smoothly and reach their recipients on time.

Because transportation is crucial to your company’s performance, it’s critical to incorporate it in the overall supply chain management system. Transportation is regarded as one of the three essential components(procurement, manufacturing, and transportation) of supply chain management because of its importance. Effective transportation management is usually a distinguishing factor among different companies that have smooth procurement and management systems.

What Are The Key Challenges?

Cost Management:

The most expensive cost in logistics is shipping and transportation. In 2018, businesses in the United States spent more than $1.45 trillion on transportation. Because it is the most significant overhead for most firms (even remote ones), it does not appear to be going away anytime soon.

On the plus side, we can start to make progress by using data analysis to optimize shipping routes. It is possible to save money by quickly coordinating incoming orders, meeting dock timings, and forecasting traffic conditions – not to mention the brands that logistics companies work with will have satisfied customers.

Rise In Fuel Prices:

When the price of gasoline rises, customers’ moods deteriorate, flight tickets rise, and, of course, the logistics industry suffers greatly. As a result, significant delays in the supply chain are unavoidable as judgments about which trucks to fill must be made. There’s no denying that this has a considerable influence on logistical costs as fuel prices rise. Though it appears that the logistics business is fighting an uphill struggle, technology is once again on our side. It’s possible to stretch a logistics budget much further by combining shipments and using data to make intelligent route optimization decisions. Remember, if you cut your miles, you’ll cut your fuel usage. That’s a win for the environment as well!

Tough Government Regulations:

Because of unforeseeable events such as Covid-19 and Brexit, the need for governments to digitally transform has been thrust upon us all. It is impossible to implement solutions without the “go ahead” from authorities due to lengthy processes and bureaucratic rules anymore. As we have all experienced the epidemic in all of its manifestations, one thing has become evident: we need to use technology to become more adaptable.

A genius suggestion would be placing antiquated processes with automated solutions such as Map & Guide and Route Optimisers, which allow planners to find potential for route improvement at the touch of a button.

Cyberattacks:

Businesses must keep up with technological advancements in order to sustain their identity and success. With the recent development of vehicle technology (like automation and internet-connected gadgets), the industry is more vulnerable to new threats, such as hacker cyberattacks; thus, drivers must utilize the most up-to-date security measures and software.

In a recent conversation with the Vice President Logistics at 3Gtm, a leading transportation company, we found out that there is not much shortage of drivers. Mr. JP Wiggins said that we have more drivers now than we ever had. However, the issue lies in the lack of connectivity these drivers feel. He mentioned that a driver’s job is a tough one because of long days away from home and much more. Hence, not everyone can be a driver.

Younger drivers may enter the industry, according to Wiggins, if employers provide them with high-tech trucks. “Make them feel linked with a part of the technological revolution.” This is a crucial consideration for the next generation of drivers. “They require a sense of belonging as well as empowerment.” He suggests going after Uber and Lyft employees.

Conclusion:

In a nutshell, like all other challenges, we can easily solve transportation challenges by using technology in the right direction.

 

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