Thrymr Software ·Company based in Germany, Singapore & India
Top 8 Logistics Challenges Facing the Industry
Here is a snapshot of 8 of the top challenges facing the industry.
Fuel Costs: One of the highest costs contributing to the ‘cutting transportation cost’ concern is fuel prices. Higher fuel prices are likely to increase transportation costs for US shippers this year by pushing up fuel surcharges. Rising US diesel fuel prices are escalating surcharges added to freight rates, which is reversing a two-year trend that cut into the revenue and earnings of truckers as fuel prices plummeted.
Business Process Improvement: Not withstanding the need for new technology, which we discuss in number eight on this list, it has become an increasing challenge for the logistics industry to stay on top of new advances in business processes. Taking advantage of these new opportunities sounds enticing but adoption and onboarding can be overwhelming.
Improved Customer Service: Customers want full transparency into where their delivery is at all times. These days, the location of a package is as interconnected as your social network. In fact, as customer expectations have increased, their willingness to pay for fast shipping has decreased with just about 64 percent of consumers unwilling to pay anything extra for less than two-day shipping.
Contract Negotiations: Everchanging fuel prices and other regulations impact on cost a lot, how do we keep negotiating the contract we have with our customers.
Driver Shortage & Retention: Hiring and retention remain an issue despite the lower demand mentioned above.
Government Regulations: Carriers face significant compliance regulations imposed by federal, state and local authorities.
Environmental Issues: The anti-idling and other emission reduction regulations brought about by state and local governments has created concern that the compliance costs could exceed benefits.
Technology Strategy & Implementation: While the industry understands and supports many of the benefits of these technologies, some questions remain as to how they will pay for it and who will help implement the improvements.
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Thrymr optimized route planning and load allocation for a leading logistics player for top e-commerce companies along with building a completely customizable uberization product for a supply chain company to manage the shipments, drivers, tracking, acknowledgement and vendor management.