Logistics is the management of the flow of assets or goods from the point of origin to the endpoint of consumption. The future of logistics and transportation lies in technology and innovation.
This has been the issue of most concern. The pressure to remain competitive, deliver customer service, and find innovative ways to optimize their operations. Growth creates challenges and trucking companies who want to be successful must change to meet them.
The companies which can adjust will profit from the new opportunities the next several years provide.
Here are three challenges a carrier must overcome in the next few years:
Fuel Costs:
One of the highest costs contributing to the “cutting transportation cost” concern is fuel prices. When the prices of fuel go up, carriers are required to increase prices or take some losses. Increased prices can have a significant impact on the cost or distance function.
That means that service areas could change based on the increased cost of fuel. If the price is affecting the usage level, then companies affected will try to save money wherever they can, hence the reduction in services.
However, if you prepare yourself ahead of time for things to come, you’ll have fewer headaches down the road.
Look at the overall area of fuel costs and examine reducing fuel consumption (fuel management) – this can be done by streamlining routes, making vehicles more aerodynamic, changing bad driver habits (like long idles), and considering perhaps more environmentally-friendly fuel remixes or alternatives.
Poor Road Infrastructure:
The state of most road networks in Nigeria is simply saddening. This is the first problem of road transportation in Nigeria. Even When roads are recently constructed, they are done with low-quality materials so the roads do not last long.
The problem of poorly built roads can be attributed to corruption because road contracts are awarded based on who can bribe his way through. After the construction companies have been awarded the contract, they set to recover the money lost then do not do the job well by using cheaper and substandard materials.
The poor state of the roads makes traveling an extreme sport and sometimes almost impossible, especially during rainy seasons. During raining season, some of the roads are covered by water which further destroys the asphalt surface of the road.
The solution to this is that the government needs to prioritize the rehabilitation of road networks. The government also needs to ensure that those awarded the contract do a good job by monitoring it closely.
Traffic Congestion:
While traffic is a large cause of frustration and a time-waster for many drivers, road congestion is especially detrimental to truck drivers.
Road congestion is a financial loss for the trucking industry due to lost time and excess fuel consumption. Congestion roads cause shipping delays, which, in turn, raise product prices.
Possible solutions to traffic congestion in the case study area are to: Dualize the road, provide Adequate parking space, construct proper drainage, and install traffic control devices. Time on productive activities.
Conclusion:
Given the above challenges, can logistics companies meet rising customer expectations, and still generate profits and growth? The answer is yes, provided they remain flexible and committed to upgrading technology, people, and process.
Transport companies who can adopt during this period of growth will thrive, those who cannot adapt will not survive. Constant evolution is the name of the game.
