The term “logistics” makes it sound like shipping and delivery is always a smooth process, but this certainly isn’t the case—there are many challenges facing the industry and individual companies that must be overcome on a near-daily basis.
Here are just a few of the most common logistics challenges, many of which we must deal with ourselves at our trucking company in Minnesota:
- Fuel costs: Unsurprisingly, the cost of fuel is near the top of the list for logistics challenges. Fuel prices have fluctuated widely over the last few years, and the higher the prices get, the more likely it is that transportation costs for shippers will increase as well, both in terms of flat rates and fuel surcharges added on to shipping packages.
- Finding ways to improve business processes: The logistics industry must constantly stay on top of new advances in business processes. The purpose is always to make shipping and receiving as easy as possible, which means it can be enticing to try to implement new processes on a regular basis to maximize efficiency. However, actually implementing these processes can be difficult, so it takes some careful consideration to determine when and how implementing new processes and improving existing ones can occur.
- Shortage of workers: There has been a massive, widespread industry problem with finding capable drivers, even though there’s actually been a lower demand for logistics work. This means it can be difficult for shipping companies to find skilled drivers capable of taking on the amount of work they have for them.
- Government regulations: Many logistics companies have to deal with compliance regulations imposed by authorities at the local, state and federal levels. These regulations might be specific to certain industries, or they could affect all drivers. But keeping track of all of these regulations and maintaining compliance is not always a simple task, especially for certain types of industries and freights.
- Technology implementation: Technology in the logistics industry is constantly evolving, and it’s up to individual companies to stay ahead of the technological curve so they can continue to compete with other companies in their field. However, paying for these technologies is not always realistic, and implementing them on a widespread level within an organization can be a challenge. Companies must be able to get all employees trained in these new technologies, and it’s not always easy to get them to buy into their benefits, especially if they have grown used to older technologies or processes.
- Environmental issues: There are a variety of environmental regulations that affect the logistics industry and place some limitations on what companies and drivers can and cannot do. For example, there are anti-idling regulations, emission reduction regulations and other types of restrictions enforced by local, state and federal governments that could increase costs.
For more information about some of the biggest challenges facing the logistics industry, we encourage you to contact K-Way Express, Inc. to speak with a representative from our trucking company in Minnesota today.