Rising Transportation Challenges Impacting the Supply Chain

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Let’s face it, the transportation industry is changing at a rapid pace. And as it continues to evolve, so too will the challenges those in logistics, supply chain and transportation face. 

While many changes are uncontrollable, a good number of today’s issues can often be tracked back to distributors and manufacturers as the cause. But most don’t even realize it. These are the top 3 challenges requiring the most industry self-awareness:

Driver Shortages

According to the American Trucking Association’s Truck Driver Shortage Analysis 2017, driver shortages number just over 60,000 and could climb as high as 175,000 by 2026.

What’s behind this staggering shortage? To start, available qualified drivers are in short supply and, unfortunately, up-and-coming generations are less inclined to fill that empty driver’s seat. This is especially problematic when you consider that “over the next decade, the trucking industry will need to hire roughly 898,000 new drivers, or an average of nearly 90,000 per year. Replacing retiring truck drivers will be by far the largest factor, accounting for nearly half of new driver hires (49%).”

Increasing Customer Demands

Those in transportation face evolving customer demands thanks to the “Amazon effect.” Customers want what they want, when they want it – placing more pressure than ever on companies when it comes to meeting – or exceeding – delivery demands. And with this increase in consumers ordering off the internet, last mile delivery costs have become the most expensive part of the product journey.

Capacity Crisis

There’s a truck capacity crisis, and it keeps on growing. According to Freight Transportation Research Associates’ Vice President of Commercial Vehicles, Don Ake, “There is an enormous demand for trucks due to burgeoning freight growth and extremely tight industry capacity. However, supply is severely constrained because OEM supplies cannot provide the needed parts and components required to build more trucks fast enough. This bottleneck is causing fleets to get more orders in the backlog in hopes of getting more trucks as soon as they are available”.

What Can Be Done?

One way to help lessen the impact of transportation challenges is by adopting Labor Management Software (LMS) to optimize the current workforce and forecast plans to meet future demands. To learn more about today’s industry barriers and how LMS can help, download our whitepaper.

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