In 2017, members of the American Trucking Association (ATA) paid a visit to the White House. They got to sit down with President Donald Trump and air out their grievances. One of the main issues they tackled was Health Care since they’re concerned about how Obama Care impedes truckers’ healthcare.
From then on, no shortage of challenges affecting the trucking industry in the country. This is despite the fact that it’s the backbone of the American economy. To drive this point home, it’s essential to note that about 70% of all goods transported within the US rely on trucks and truck drivers.
With that in mind, identifying all the industry issues is critical to keep it moving forward. Solutions for each are a priority if the economy is to keep growing and thriving.
Challenges Facing the Logistics Industry for 2021
2020 is coming to an end, and some of these issues will be transferred to the coming year. A more in-depth look into each is the best way to start finding lasting solutions.
The Rise of Technology
According to experts, technology is fast affecting and even taking over the logistics industry. Most companies are struggling to keep up with all the innovations taking place. This is a cause of concern as most truckers believe the machines will soon take over their jobs.
Most businesses are busying themselves with embracing every bit of digital evolution. This is seen as a way to advance, grow, and cut costs. The good news is there’s a chance for the industry to survive as trucking and logistics companies run with innovative ways to stay in business as well.
Integrations in the Supply Chain
Business is global, and no day is this statement more real than the present world. People are doing trade deals from across the globe with ease, thanks to digitization. This is why countries keep striving to maintain peaceful co-existence with one another in a bid to strengthen trade flows.
The supply chain is changing as it doesn’t only rely on current trade policies. Shipping as a subject needs to embrace flexible measures to help the transportation industry grow. This is best done by finding ways to integrate supply chains better.
Change in Client Expectations
Another challenge is client expectations that keep evolving, especially due to a rise in technological advancements. Information is now easily accessed by clients at their fingertips resulting in higher expectations from the logistics industry.
Also, all this information means customers are now turning more to companies with a digital footprint. Those that are yet to embrace technology are finding it harder to do business. Therefore, it’s up to transport companies and experts to help their business get with the times or risk going out of business.
The Mission of the Company
As innovation is the way to go for most transport companies, keeping their core mission in mind is critical. Since they’re answerable to shareholders, knowing what core systems drive a company remains a crucial part of the business. This is challenging with all the demands that technology is now inflicting on this industry.
All these challenges that affect the logistics industry are based on the rise in technology. Companies must find ways to find solutions for them come 2021. Additionally, growing concern on cybersecurity is impacting the logistics industry
Cybersecurity and the Logistics Industry
As transport companies embrace technology, a more pressing concern they face is cybersecurity. Those that are now tech-savvy continue to struggle with this menace. A more permanent solution is required if the industry is to safeguard against such threats come 2021.