There are several challenges that face the logistics today. As the world is attempting to recover from the supply chain disruptions from the pandemic, new logistics challenges have become formidable obstacles for the industry.
The team of experts at East Coast Transport are very adept in taking on these logistics challenges and providing the best services for their clients. Contact us today for assistance in managing the logistics concerns facing your business.
Current Logistic Industry Challenges
Several problems contributing to the current logistics industry include:
- Driver and labor shortages. Securing and retaining a labor force, including drivers, has left many companies shorthanded thus becoming a great challenge in the logistics industry.
- Economy and rising fuel costs. With rising inflation and fuel costs, managing costs and surcharges has become a serious logistics challenge.
- Implementation of latest technology. The increased demands on logistics is requiring significant upgrades and implementation of new technologies. The emphasis on customer service and desire for full transparency in product delivery has posed a significant challenge for the logistics industry as companies are adapting to more technically advanced systems and also navigating the costs associated with such systems.
- Governmental and environmental regulations. Another significant and potentially costly challenge in the logistics industry is compliance. The industry is adapting to new regulations from local, state, and federal governments. Several of these compliance issues are environmental driven such as emissions.
Even the best logistics company is not immune to these industry challenges. However, as we’ll discuss below, the best transportation company is able to adapt and overcome.
Overcoming Logistics Challenges: The Importance of Evolving 3PL in Assisting Customers
According to a Statista study, U.S. businesses spent $1.63 trillion on logistics in 2019, moving goods from origin to end-user through various supply chain network segments. By 2025, a total of 5.95 trillion ton-miles of freight will move across the United States.”
With such data in mind, it is critical for businesses to seek an experienced and evolving logistics companies like ECT to keep their product moving efficiently.
At ECT, we enhance your customer service by improving product movement accuracy and duration while cutting costs through enhanced visibility to reduce overhead and prevent losses. Partnering with our flexible logistics company can significantly boost your business’s competitive edge. Efficient product movement drives cash flow, allowing you to focus on other areas to improve your bottom line without worrying about transportation issues.
Powerful Tools for Overcoming Logistics Challenges
In the logistics industry, modern challenges find solutions through innovative tools driven by cutting-edge technology. A few of the top tools to implement in combating current logistics challenges are:
- Automation: Utilizing robots and drones in warehousing and order fulfillment.
- IoT (Internet of Things): Utilizing smart technologies to gather significant data throughout facilities.
- Advanced Supply Chain Software: Utilizing software to assist supply chain management in planning, distribution, and inventory.
- Data Aggregation: Using the cloud to gather and analyze mass amounts of information.
While these are just a snippet of the newest technologies in the logistics industry, some other valuable ideas to implement in the face of these challenges are to focus and plan on improving order-to-delivery times and self-assessing your company’s standard operating and transportation procedures.
The Advantages of Transportation Tracking
Transportation tracking has become an essential element in combating the challenges in the logistics industry. Maintaining transparency of shipments from packaging through delivery is essential in competent customer service.
Transportation tracking has a few basic components:
- Generate a barcode.
- Scan package barcode.
- Track package through barcode scans.
- Final delivery barcode scan.
Some of the benefits of transportation tracking that can tackle logistics challenges include:
- Specific and detailed live route tracking.
- Real-time delivery status updates.
- Package alerts.
- Digital delivery receipts.
In addition to increased customer service, ECT puts great stock into transportation tracking technology because it helps increase our core competencies: performance, safety, value, and flexibility.
How To Develop An Effective Logistics Strategy
For companies to grow their bottom line and effective logistics strategy is imperative. One industry professional believes that the following components are essential to building a successful logistics strategy:
- Assess your current transportation system and identify if it is serving your company effectively.
- Evaluate the effectiveness of outsourcing.
- Review your logistics systems.
- Identify competitors and evaluate your customer service standards.
- Develop a strategy review for continual assessment.
A logistics provider like ECT is well-equipped to take on the latest logistics challenges. Tell us about your logistics plan, and we will help you manage and overcome today’s logistics challenges.
Create a Logistics System with ECT
Every business and every industry will have a set of unique logistics issues to address. One of the first steps to develop a successful logistics system begins with contacting experienced logistics professionals that you can trust.
For over 45 years, East Coast Transport has embraced our fundamental principles of honesty, integrity, partnership, and hard work. Call ECT to discuss your logistics needs and create a logistics plan.