Top 5 Transportation and Logistics Challenges in 2022

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Supply chain resilience is more important now than it has ever been. Issues like decreasing transportation costs, rising fuel prices, and driver shortages during a global pandemic have undoubtedly launched us into a new era of logistical complexity, thanks to following changes in technology and customer expectations.

What are the most essential risks to consider when it comes to logistics and transportation?

The epidemic has molded a new future for logistics, and many businesses have been pushed to slash shipping costs as a result. As a result, businesses have been forced to rely on fewer carriers or negotiate lower costs.

However, this was not a practical solution: merging shipments has a detrimental influence on a company's customer satisfaction scores because delivery may be late or never arrive.

To offer an example, when people use Amazon Delivery to order same-day delivery services, it puts pressure on all businesses to follow suit (which might not be realistic). This comes at the expense of client happiness once more.

Implementing a contingency plan and learning from prior mistakes has been critical since the first wave of Covid-19.

Recognizing the history and comprehending the risks are critical first steps in charting a course forward.

Regardless of the new issues that have arisen, it is critical that we embrace them as a learning opportunity so that we can remain adaptable and construct agile logistics systems in the future.

So, let's take a closer look at the top five transportation and logistics difficulties, as well as our recommendations for how to address them in the future.

Transportation and Logistical Issues that Need to be Addressed

To meet today's logistics difficulties, the logistics industry as a whole should aim to ensure that more sustainable transportation is used, that customer satisfaction is higher, and that the economy is nourished.

1. Difficulty in Reducing Transportation Costs

I'm not going to lie to you: I'm not a fan of sugar coating things. The most expensive cost in logistics is shipping and transportation. In 2018, businesses in the United States spent more than $1.45 trillion on transportation. Because it is the most significant overhead for most firms (even remote ones), it does not appear to be going away anytime soon.

On the plus side, we can start to make progress by using data analysis to optimize shipping routes. It is possible to save money by quickly coordinating incoming orders, meeting dock timings, and forecasting traffic conditions - not to mention that the brands logistics companies work with will have satisfied customers.

2. The Economic Impact of Rising Fuel Prices

When the price of fuel rises, customers' moods deteriorate, airline tickets rise, and, of course, the logistics industry suffers (we all know those freight fuel tanks aren't cheap!) As a result, significant delays in the supply chain are unavoidable as judgments about which trucks to fill must be made. There's no denying that this has a significant influence on logistical costs as fuel prices rise.

While it may appear that the logistics business is fighting an uphill struggle, technology is once again on our side. It's possible to stretch a logistics budget much further by combining shipments and using data to make smart route optimization decisions. Remember, if you cut your miles, you'll cut your fuel usage. That's a win for the environment as well!

3. Driver Shortages Related to the Pandemic

Due to the booming US economy, long hours demanded of drivers, and lengthy time away from family, there was a 50,000-driver shortage in 2018. This shortfall has had a domino effect: as the economy grows, there is no way to get all of the items where they need to go, therefore product costs rise, counteracting the benefits of a flourishing economy.

Consider this: when the hose in your backyard kinks, the water going through the nozzle comes to a halt and cannot fully pass through the nozzle. The puzzle pieces that hold the economy together are the people who coordinate our complicated logistics systems; they allow the water to break free and flow to its destination.

Fast forward to today, and we've discovered that we're dealing with an even worse problem: a 300,000-strong driver shortage caused by Brexit and the pandemic.

Elements such as the following contribute to this:

Financial constraints have resulted in a scarcity of resources.
Regulations that maintain social distance
The government's large financial support discourages drivers from returning to work.

So, what are our options for resolving this?

It is possible to maximize the effectiveness of an organization's existing fleet and drivers through route optimization. Our software tools assist planners in analyzing data and making the most of their resources.

Drivers are also more likely to make their ramp timings due to more realistic routing and arrival times. Overall, route optimization software decreases driver stress, resulting in increased driver satisfaction and long-term retention.

4. Complicated government rules and regulations

Because of unforeseeable events such as Covid-19 and Brexit, the need for governments to digitally transform has been thrust upon us all. It's impossible to implement solutions without the "go ahead" from authorities due to lengthy processes and bureaucratic rules.

As we've all experienced the epidemic in all of its manifestations, one thing has become very clear: we need to use technology to become more adaptable.

Replacing antiquated processes with automated solutions such as PTV Map & Guide and the PTV Route Optimiser, which allow planners to find potential for route improvement at the touch of a button.

5. The Increasing Demand for Long-Term Logistics Operations

Another major (and largely good) result of the pandemic has been a drive for conscientious consumerism, as well as changes in laws and regulations. Consumers and businesses are increasingly interested in learning about the brands they support and how they benefit the environment.

With this in mind, a requirement for long-term logistical operations arises. With technology like the PTV Route Optimiser, logistics planners may improve on these components. Every day, our software tools help to save 40,000 tons of CO2 and an average of 17 percent of revenues.

Furthermore, the following are some additional advantages of long-term logistical operations:

Pollution-free businesses have a better chance of winning contracts.
Government policies in this area run smoothly.
Green vehicles lower fuel costs and increase revenues.

We've gone over the current issues and hazards in logistics, as well as how software may help alleviate them. Let us now sum up our findings.

Risk-Mitigation Transportation and Logistics Solutions

Transport and logistics will continue to be under a lot of strain in 2022, because of growing fuel prices, driver shortages, and a governmental and social push for enhanced digitization and sustainability. Players in the logistics industry can address these issues by incorporating digital solutions into their operations.

1. Reduced mileage and transportation costs

Logistics firms may save a lot of money by using software. Using optimal routing, you can save a lot of money by reducing the number of kilometers travelled and hence the amount of gasoline consumed.

In addition, intelligent route planning software allows transportation planners to consider and avoid toll routes. PTV Map&Guide, our industry-leading route planning program, is specifically intended to plan ideal routes for trucks and large transport vehicles, and it includes the most accurate transport cost calculator available. Learn more about using PTV Map&Guide to plan routes and calculate freight costs.

2. Maximized fleet and driver capacity utilization

Routing and scheduling software distributes orders to available trucks as efficiently as possible and sets effective driver schedules. It determines the ideal stop sequence for each vehicle and calculates the most efficient driving routes.

In addition, coordinating delivery and collections minimizes the number of empty runs. Software tackles these logistical issues more efficiently than even the most experienced transport planner could manually, thanks to sophisticated and intelligent algorithms.

As a result, available resources are utilized to their best ability, allowing businesses to manage more orders with their current cars.

3. Cutting-edge software solutions reduce risks throughout the supply chain

Transportation businesses can use logistics software to track their trucks in real time, generate expected arrival times (ETA), and share position and arrival data with all parties involved in the transportation chain.

As a result, software improves supply chain transparency, planning security, and efficiency. Our PTV Developer Components provide robust APIs for all geographical and logistical needs, which can be quickly and flexibly incorporated into any software infrastructure.

4. Less fluctuation and happier drivers

A driver's life is sometimes stressful and frantic, with traffic jams, no-go zones in urban areas, trouble finding safe overnight parking, and being late for ramp time slots.

Almost all of the problems that drivers confront on a daily basis can be solved with software. PTV Navigator, for example, ensures that drivers arrive at their destination safely and on schedule. The software guides them turn-by-turn and only on routes that are appropriate for their car.

PTV Route Optimiser improves punctuality by creating realistic itineraries, tracking position and arrival information. It enables drivers to meet their ramp timings – or warns customers if they don't – and therefore avoids the hassles that come with being late.

5. Reduced emissions

The necessity to reduce emissions in order to keep below 1.5 degrees has become abundantly obvious in recent months. More limits are being demanded by society, and administrations are finally responding by enacting legislation.

In order to rigorously measure and monitor emissions, an increasing number of countries are implementing mandatory emissions reporting schemes. It's no longer a nice-to-have to be able to precisely calculate and report all emissions, particularly CO2 and nitrogen.

It's quickly becoming a deciding factor in the success of any logistics company. Emissions calculators are included in all of PTV's logistics ready-to-use software packages.

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