Flexibility and flux seem to be common themes throughout the logistics industry. As the end of second quarter draws to a close, we want to take a few moments to discuss the trends we’re seeing throughout the industry.
Instead of talking about each issue individually, we’re going to discuss them as themes that are pervading our industry.
Need for flexibility
Every supply chain is unique and will have its own variety of fluctuating variables that must be considered. As the focus on supply chain intensifies in an effort to keep costs down and customers increasingly happy, the ability to respond—and even anticipate—changes in the supply chain for each customer is paramount.
We, as well as our logistics counterparts, are working to remain nimble in how we service customers. We accomplish this through the increased use of technology and changing our internal procedures to better respond to client needs throughout the supply chain.
Technology advancements
Speaking of technology, we’ve seen two major elements become more prominent in the logistics industry even in just the recent months. In April, the ELD (Electronic Logging Device mandate went into effect, which is intended to help create a safer work environment for drivers and make it easier and faster to accurately track, manage, and share records of duty status.
The ELD mandate does not affect us much, if at all, at On Time Logistics because our drivers are not long distance (OTR) drivers.
Continued and increased use of EDI (Electronic Data Integration) software is making logistics, especially communication between suppliers and 3PL companies, much better. This, in turn, makes the experience better for the end customer because the deliveries are faster and more accurate.
One issue with technology that was featured in a recent article from SupplyChain247.com, is that shippers are not adopting technology as quickly as others in the transportation industry. We agree that shippers must improve their technology use to make the entire rest of the supply chain more successful.
Higher costs on all sides
Recent tariffs on certain materials, increased diesel costs, and increasing transport rates from shippers are all areas where costs are rising. Add to this the severe driver shortage that is driving costs up for logistics companies as they try to recruit new drivers and are sometimes forced into a capacity crunch because the fewer drivers mean putting more into one load when necessary. There’s also insurance costs that are going up for last mile carriers because of the increase of trucks on the road, inexperienced drivers behind the wheel, and growing losses due to damaged vehicles and freight
These cumulative rising costs create the need for an even more tenacious efforts to find other ways to lower costs in other areas so that the end customer does not experience drastic cost increases. We believe, however, that ultimately customers will see an increase in the cost of the products they purchase.
Improving customer service
Finally, we, along with others throughout the supply chain, are working to improve customer service. Not only improve, but to excel. By providing a few added services to our deliveries such as white glove, we are able to offer our retail clients and, in turn, their customer, better quality service. People are becoming more willing to pay for additional services that make their lives easier and the experience richer. While all entities involved in making e-commerce a positive experience for the customer, the trend this year especially has been that last mile delivery is the key to that success.
Are you needing a logistics provider for deliveries or warehousing? You need to work with the most professional and customer-friendly last mile delivery, courier, and warehousing company in Northwest Arkansas, Little Rock, and Tulsa. Give us a call.