Logistic
Logistics is for many companies a key spend but sometimes also a nightmare. Certainly after the shortage and disruptions of 2020/2021 many companies should have a close look at this part of their operations.
It is an area that is currently going through a profound transformation and where the market conditions will continue to change in a rapid way and where an in depth transformation of your operations is needed. It deserves a special attention in order to maintain smooth operations
Business Situation
Transport companies or entities face and will further face a difficult situation to find appropriate drivers. This is a consequence of the fact that being a driver is not an attractive profession, that many drivers get older, that the legislation becomes more and more strict obliging companies to offer decent working conditions and return home options to their drivers.
In some areas like the maritime container business I see a further consolidation of players taking place. In the rail transport I see that the open market conditions did not really deliver their promise as the market remain very "nationally" protected or organized.
In the same time there is a pressure to reduce the environmental impact of the transport and soon this will also translate in an economical impact. Finally the customer wants his goods always faster and wants to be perfectly informed about the location of its goods and the expected time of delivery.
What needs to be done ?
Luckily you have ways to act in this turnulent situation.
A first step is always to review your strategy. How do you organise your transport ? What are you doing yourself and what is outsourced ? What is under contract, what do you buy on spot ? What does it mean in terms of agility, sustainability, reliability, timing and in terms of economics ? What is your relation with your contractors ? Is all this sustainable ?
A second step is to optimize the use of your transport means, the routes that are chosen, the type of transport mean that is used, ... .
In last step we can look at the digital components. A digital Transport Management System and a good connection to the operations through tracking tools will change your world and allow to strongly improve your operations and service commitments.
Do you want to know more ? Let us get in touch.