One of the biggest issues I came across in the Transportation/Logistics field was cutting transportation costs. A contributing factor is companies have several ways of reducing transportation costs, but most of them come with tradeoffs: They can choose to reduce their number of carriers and instead redistribute their load among fewer carriers or negotiate for lower rates. This option, however, comes with a risk as the company will be depending on so few carriers. Consolidating shipments to get bulk rates may also help. But consolidation can also delay deliveries, impacting customer satisfaction negatively. Since fuel costs fluctuate according to the market and are often increasing, keeping transportation costs as low as possible requires thoughtful planning. The rise in diesel fuel prices, fueling surcharges, escalating freight rates- these can seem insurmountable.
Another issue I came across regarding the transportation/logistics industry is driver shortages. Hiring and retention remain an issue despite the high demand. Companies have to scrutinize the applicants’ driving records, check on inspection discrepancies and traffic violations, etc. This shortage has had a domino effect: When the economy is growing, there’s no way to get all the goods where they need to be, so the cost of the products increases, which then gives the opposite effect of a booming economy. The pandemic has shown that with the lack of resources it can really cripple our nation.
References
https://www.dispatchtrack.com/blog/top-transportation-logistics-challenges