Transportation Logistics

These factors are driving change in transportation logistics management

As we near the end of 2019, we look back and see how the transportation logistics management industry has evolved over the year. Here are the factors driving change in the supply chain industry this year.

Trade Tensions
The future of trading between China and US has been uncertain this year, to say the least. Tariffs imposed from both sides have meant changes in the way we think about importing and exporting goods in regards to one our biggest trade partners. The tariffs, combined with the eye-opening instability in our global economy have meant that more companies are willing to explore reshoring efforts to improve supply chain continuity.

Tech and Data Improvements
The way that we collect, analyze, and use data in transportation logistics management has become exponentially sophisticated in recent times. The technology companies are utilizing is changing as well, with AI, IoT, blockchain, and robots leading the way towards more efficient supply chains.

Continued Growth of E-Commerce
There’s no doubt about it, e-commerce is here to stay. Deliver direct to consumers rather than the more traditional brick and mortar or even mail order retail have meant continued shifts in the industry, with transportation logistics being forced to continue to adapt and innovate.

Consumer Demand
Consumer expectation is rapidly evolving. Buyers today expect to be able to hop online and purchase anything they could possibly think of, even personalized items, and they expect delivery to occur within days. In order to keep up with the competition, everyone from retailers to suppliers are having to change the way they operate. Sophisticated, reactive logistics and expedient, efficient transportation are a must.

The Job Market
Unemployment in the month of September was the lowest it has been in the US since 1969. Low levels of joblessness make hiring and employee retention more difficult, forcing transportation and logistics companies to work harder to be competitive employers. It also pushes transportation logistics engineers to innovate their way to better productivity with their established workforce.

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Independent research shows that improved supply chain management can yield:

  • 25 – 50% reduction in total supply chain costs
  • 25 – 60% reduction in inventory holding
  • 25 – 80% increase in forecast accuracy
  • 30 – 50% improvement in order-fulfillment cycle time
  • 20% increase in after-tax free cash flows
  • Supply Chain Mapping

  • Review Market Conditions

  • Determine Operational Inefficiencies

  • Outline Opportunities

  • Implement Changes

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WEATHER ALERT

Severe weather may cause supply chain disruptions across the state of Florida and Southeastern United States. As a FEMA certified provider, BlueGrace Logistics is monitoring the situation closely to ensure the safety of our shippers, carriers and employees. Our nationwide freight network remains available to help our stakeholders minimize supply chain disruptions during this time of turbulence.

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