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Platforms for digital transportation management can provide essential capabilities for insourced and outsourced models, allowing shippers and partners to grow collaboratively.
FREMONT, CA: Despite being a vital pillar in the value chain, logistics, and particularly road transportation, it has not been a top management priority for the past two decades. Most chief procurement and operating officers have insisted on providing reliable services at the lowest possible costs. A fragmented market in trucking made it possible to exchange carriers flexibly, which eroded margins and made driving conditions difficult for drivers.
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Transportation management involves managing the physical transportation of goods to their destinations. Managing carriers and developing control towers are also included as operational pillars to ensure stable operations and end-to-end visibility. A strategic pillar complements shippers' responsibilities by providing directive tasks to maintain cost-effective freight rates and establish sustainable networks.
Shippers must rethink their logistics operations to generate short-term relief and ensure stable operations in the midterm.
Consumers: The B2C business has been accelerated by remote working and the growing trend of consumers ordering smaller quantities more frequently for home delivery. Shippers must upgrade their distribution channels to reduce lead times, improve shipment visibility, and establish a high-performance reverse logistics network. Companies need to expand their capabilities to meet the modern consumer's demands. This includes having the ability to offer same-day and next-day delivery, as well as providing customers with accurate tracking information to ensure their orders are delivered on time. Additionally, having a well-established reverse logistics network will enable companies to quickly and efficiently handle customer returns.
Climate change: For many years, sustainability goals and measures have become increasingly important. With recent political pressures and shipper expectations, carriers and shippers can't ignore the need to achieve net zero emissions. In non-avoidable, over-the-road shipments, switching to alternative fuels can reduce CO2 emissions by 90 percent.
Technology disruptions: The sophistication of digital transportation management solutions is increasing. Most business-critical activities, such as rate benchmarking and shipment tracking, are being developed by leading carriers and software start-ups. To patch current structural weaknesses, shippers must closely monitor the emerging market for digital tools and incorporate them into their logistics strategy. The use of these digital solutions has the potential to reduce operational costs, increase operational efficiency, and provide real-time visibility into the supply chain. Additionally, these tools can automate many manual logistics processes, helping reduce errors, improve accuracy, and increase customer satisfaction.
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