Expectations in Transportation and Logistics

The New Year brings new challenges and opportunities for transportation. Safety, productivity, and following the law remain top priorities. To keep up with new technology and changing rules, we predict some key trends ahead.

What’s coming in transportation?

• Businesses will use Big Data smarter.

• Stronger partnerships will be important.

• Customer experiences will improve.

• Driver demographics will change.

Supply chains will also evolve. Successful ones will focus on better forecasting and logistics. With more local manufacturing and growing omni-channel retail, carriers, shippers, and 3PLs are working together on new transportation solutions.

Here are some trends to watch this year:

Big Data 

Big Data is important. Early users gain an edge. Whether data comes from inside the fleet or outside, more information means better business decisions. Real-time insights help improve processes and solve problems.

3PLs can use Big Data for both everyday tasks and long-term planning. It can predict and influence demand. With timely data, 3PLs can advise shippers on the best transport mode and alert carriers about popular routes. Big Data helps boost on-time deliveries, optimize routes, and manage pick-ups and drop-offs.

Using Big Data means smarter decisions that improve profits. A study shows both 3PLs and shippers believe data-driven decisions are key to future supply chain success. 

Driver Shortage 

The truck driver shortage will stay a big problem next year. With a strong economy, many drivers retiring, and new rules, it’s harder to find qualified drivers. The ATA says we might need 1 million new drivers by 2024 to handle demand. New rules like the 34-hour restart force drivers to drive during rush hour, reducing daily distance. Delays like slow loading or accidents also lower efficiency, making drivers rest before reaching their destination.

Hiring more drivers seems like the solution, but younger people avoid trucking because of long hours away from home. Plus, many current drivers are near retirement, leaving jobs open. Carriers must get creative to attract younger workers.

Demand keeps growing as the economy expands, with more shipments than drivers. Shippers will compete for trucking space and may need to share truck space with competitors to save costs. Using a 3PL with reliable carriers will be a big advantage.

Capacity and Relationships 

Shippers worry about fewer trucks and drivers, limiting carrier capacity. With less capacity, rates go up, so shippers plan to spend more to meet demand. Carriers see this as a challenge and will choose partners carefully, focusing on productive loading and unloading. Shippers wanting reliable capacity, good service, and fair prices will keep working with 3PLs to save money.

Consumer Experience plus Omni-Channel 

Improving productivity across the supply chain is essential. Truckers and retailers must boost efficiency through technology, operations, and communication. An omni-channel supply chain, where orders can be filled from any source for a smooth shopping experience, will be crucial next year. Retailers and suppliers need to include omni-channel strategies to meet customer demands. To speed up delivery, retailers are centralizing distribution centers. Shippers also aim to optimize their supply chains for better customer service. Working with a 3PL helps shippers find cost savings, new routes, and better transportation options. Using inventory data and Big Data, 3PLs can improve the efficiency of an omni-channel supply chain. 

Global Economy 

The economy's health depends on current market conditions. Europe and Japan are in recessions, and Russia is struggling because of lower oil prices. If China faces economic issues, the US will also be affected.

Organizational Alignment and Strategy 

A clear strategy helps create better systems and processes for smooth logistics. Departments like marketing, IT, sales, and finance should work together more closely. Good communication and teamwork improve the business and ensure real value is provided.

New Rules and Regulations 

New transportation rules will likely be introduced to improve safety, compliance, and accountability. The hours of service may include the 34-hour restart rule, requiring drivers to take two breaks between 1-5 a.m. The FMCSA supports this for safety, but some disagree. The President is expected to name a new FMCSA leader, create a national database for drug and alcohol test results, and propose new fuel efficiency standards for trucks. 

Conclusion 

Supply chain leaders must manage growing inventory, improve customer service, use Big Data, ensure accurate forecasts, and find the best way to fulfill orders. 3PLs are becoming key players in transportation, providing simple systems, reliable capacity, and efficient operations that help both carriers and shippers. They support clients by meeting needs and requests, maintaining strong networks and relationships to keep businesses competitive. This allows companies to focus on their main goals instead of constantly negotiating freight costs.

A 3PL gives shippers access to many carriers, easy technology, smooth operations, and one bill. Using a 3PL makes shipping easier and offers smart solutions to supply chain problems. Carriers, shippers, and 3PLs have a positive outlook due to more domestic manufacturing and omni-channel retail, working together on new transportation ideas.