Shippers face a plethora of problems in the logistics industry, but some challenges are more prevalent and common than others. Here we go over 3 of the most common challenges that shippers are facing in the logistics industry in recent years.

Infrastructure & staffing

Although you might assume that such a booming industry is rife with the infrastructure to support it, the opposite is true. Because truck drivers have to share infrastructure with the public most of the time, they are often subjected to problems which are not a big deal for other people. For instance, congestion at terminals, traffic control issues, and poor technology are all major roadblocks in the logistics industry. Within the trucking industry, you’ll find that the average truck driver is in their late 50s, and there are over 30,000 truck driving jobs lying vacant in the US. It has been exceedingly difficult to interest younger generations in truck driving as a career, making it difficult to harness the manpower necessary for a large-scale logistics industry which keeps growing.

Disruptive technologies

Disruptive technologies get their name for a very good reason – they disrupt the industry and can cause a whole host of problems for companies who are trying to remain competitive in the space. For example, if one transportation company harnesses a successful predictive analytics solution, then all of their competitors could begin to get extremely hurt by this competition if they can’t keep up. Sadly, some companies just don’t have the cash flow and resources necessary to be constantly investing in new technologies and staying ahead of the curve, even if they have the best of intentions.

Security concerns

By its very nature, the logistics space involves a lot of different touchpoints and handovers where security can become a concern. When it comes to security as a shipper, you’re only as good as your weakest link. For this reason, you should make sure that you work with companies which are reliable, reputable, and well-established. The ATA estimates that 81% of all shipping revenue can be attributed to trucking, so it is essential that you maintain high levels of security when your cargo is moving between vehicles. In addition to working with reputable partners, shippers may also want to consider installing cutting-edge security, monitoring, and data-tracking systems which allow them to easily identify where loads were altered along a supply chain and hence discover the root cause of any security concerns.

These are 3 challenges that shippers are facing recently, although these challenges are always changing and adapting as time marches on and shippers continually adapt to changing conditions in the space.

Do You Know the 3 Biggest Challenges Shippers Have to Face in The Logistics Industry? was last modified: by