Market Trends Spur Change in Supply Chains, Need for Better Technology

And, the most significant capacity shortages appear to be in the trucking industry. There are number of reasons for capacity to be tight, including a nationwide truck driver shortage.

At the end of 2017, the American Trucking Association (ATA) stated that there was a deficit of 50,000 drivers. While carriers are experiencing the ability to shore up margins that have been razor thin, they are challenged to make the most of every asset. While truck driver Hours-of-Service regulations have always been strict, the mandated for electronic logging devices (ELDs) means there is no wiggle room at all.

With the ATA estimating that close to 70 percent of all goods consumed in the U.S. move by truck at some point in the supply chain, the capacity shortage is having an effect on numerous industries. Across the board, shippers that are looking to control logistics costs need creative thinking and innovation to optimize their networks. A TMS can assist shippers in driving optimization across their networks, while also identifying gaps and opportunities for increased efficiency. Using a TMS with business intelligence (BI) capabilities can help shippers make more informed decisions because they can easily pinpoint what lanes, routes, customers, or divisions drive costs up, and then look for ways to improve performance in those areas.

Global trade environment is volatile

With numerous proposed and changing regulations regarding tariffs, trading partners, and virtually every aspect of global trade, the environment can best be described as volatile. Global transportation management involves a level of complexity beyond regulatory issues, with the need to operate in different currencies, languages, and units of measure.

A disruption with a global shipment can have significant impacts and take longer to resolve than a domestic issue. For example, additional trucks can be dispatched to cover a missed pickup in minutes or hours. However, missing a berth on a steamship can delay your shipment by weeks. And, if the shipment is trapped on a container at a port, it is very difficult to retrieve the freight to move it to an expedited or air cargo service.

A TMS with global capabilities is a must-have for international transportation management today. With data being received from numerous sources, companies need the ability to access and integrate information and to gain visibility across the supply chain, a daunting task if a manager is relying on phones, faxes, and email to handle transactions.

In conclusion, there has never been a more exciting time to be in the transportation and logistics industries or a more critical time for all parties engaged in the supply chain to be creative, innovative, and strategic. It is time to put away the Excel charts and fully embrace technologies like a TMS. Even if a company makes the initial investment to address a current issue, they will also continue to be well positioned for all of the opportunities and challenges of what is shaping up to be a dynamic future of delivery.