Challenges for Logistics in 2022
The logistics industry and the supply chains that support it face many challenges in 2022. In this blog, we’re sharing a few of the major challenges in the industry, and how companies can overcome them.
Increased transport and fuel costs
One of the major concerns for logistics companies is increasing transport costs. A significant contributing factor to transport costs is the rising price of fuel. To cope with the cost of fuel, truck companies are having to charge their suppliers more. This leads to increased prices across the supply chain which are eventually passed on to the customer.
Increased pressure from customers
Today’s customers want full transparency in regards to where their delivery is at all times. They want to track the location of their package in real time and don’t want to wait for shipping delays. Customers are placing increased pressure on logistics companies to deliver their parcels quickly. They expect it to arrive in two days, without paying extra.
Another challenge for logistics companies this year is the lack of drivers. Hiring and retention of drivers remain an issue, despite the increased demand. Logistics companies that aren’t able to hire and retain enough drivers can’t get their goods delivered on time, which can frustrate customers.
Environmental issues also remain a challenge for logistics companies. They must meet anti-idling and emission reduction regulations set by federal, state and local authorities. The cost of meeting these regulations can also outweigh their benefits. Logistics businesses must find a way to be compliant while also making a profit.
Implementing new technologies
Logistics companies face increasing pressure to implement new technologies for tracking deliveries, predicting supply and demand levels, and increasing visibility. While there are many benefits to these technologies, some companies question how they will pay for them and who will help implement the improvements.
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