4 Ways Technology Can Prevent the Logistics Problems of 2021 … in 2022
The past year has been historic when it comes to the problems in the logistics industry. For better or worse, the situation has brought to light just how important supply chains are to people’s daily lives. Given everything that’s going on, it’s reasonable to blame the current situation on the pandemic. But, it’s also true that limitations of the country’s logistics infrastructure and the ways companies choose to operate their supply chains have added to the challenges.
So while there’s little any one company can do to fix big-picture problems like port congestion, it’s a mistake to accept the situation as how it has to be, even though there are no easy answers or fixes. At the same time, the market-driven factors working against everyone right now are not changing anytime soon.
The best thing a company can do is think about its shipping operations and try to do better in the areas it can influence. The way to make improvements, not surprisingly, can start with the application of technology. Fortunately, today, this is not as complicated or costly as companies think.
Here are four problems your company may be experiencing and how logistics technology can be the solution.
Problem 1: Limited Carrier Capacity
The ability to find trucks is one of the biggest challenges for shippers right now. There are not enough trucks on the road for what’s needed, which creates an obvious supply and demand imbalance. Connected logistics technology, such as a modern TMS that connects with a large number of carriers, makes finding a pre-vetted provider a matter of minutes, rather than making countless phone calls and sending one-off emails and then waiting for a reply.
Problem 2: Poor Decision Making
An efficient logistics operation is set up to make fast and informed cost vs. service decisions. This is important because there is never only one way to move a load, and calculating rates is complex. The right technology enables a smooth process of quickly evaluating the options and choosing the right carrier based on the cost and service required for that individual shipment. With the right technology, there is no wasted time and no wasted costs.
Problem 3: Improper Mode Selection
The value of making the best choice when deciding what mode to use is underappreciated, and that decision is more complex than many shippers realize. When capacity is tight and markets are tough, the opportunities and risks increase. The financial exposure from mistakes can be huge, which makes technology another key decision support tool all companies need, particularly when conditions are volatile.
Problem 4: No visibility
Visibility is arguably the best of what technology can offer, and it’s more important than ever right now. Companies need to let the data flow, and a data-driven and connected supply chain is the backbone of most well-run logistics operations. Visibility and connectivity not only keep the logistics department informed, but also keep other stakeholders updated on what’s happening. The supply chain function is important to everyone involved at a company, and the ability to track what’s happening and keep customers informed is only made possible with technology.
So, what do you do next?
Fixing shipping problems that have been common in 2021 will set your company up for success in 2022.
The good news is the cost and IT effort it takes to put these solutions into practice is far less than it was just a few years ago. Operating a connected TMS technology, like that offered by TransImpact, can be the first step to overcoming each of these problems.
Contact the shipping consultants at info@TransImpact.com for more information on how your company can quickly realize the benefits of a tech-enabled logistics operation.
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