Trucking Transportation and Logistics HTML template

Major Challenges in the Logistics and Transportation Industry

The transportation and logistics industry have a pivotal role in keeping the global economy going.  

Just imagine what would happen to retailers, manufacturers, and service providers if there were no one to transport their goods to customers.

Key all other industries, Logistics and transportation are facing tremendous challenges – due to shifting customers expectation, technological changes, and government’s stringent rules & regulations. Of course, there is an immense opportunity for evolution within the industry in coming years. Logistics Companies would have to overcome serious challenges before taking advantage of these opportunities.

When we talk about the logistics sector, everything is time-bound. Each and every process is based on the one preceding it. Even a minor delay on one stage would lead to a magnificent ripple effect on other stages too. Every logistics company wants to achieve the same target to reduce the time of supply chain by streamlining the processes effectively. But this doesn’t always go as per the planning and expectation. 

We discover major and common challenges faced in Transportation and Logistics, including the fleet truck driver shortage, & some of the potential solutions. If you are running a fleet vehicle company, you can understand the pain of challenges described below and take the solutions right away. 

What are the challenges facing in Logistics and Transportation Industry? 

Cutting Transportation Logistics Costs

Transportation cost is the biggest challenge for the company. With the rise of fuel price, consumers pay the toll for transportation. To address this issue, business incorporated better strategies that help to identify transportation issues & implement the appropriate solutions. 

By incorporating artificial intelligence and autonomous tracking into the vehicle, you can track real-time data with route optimization to cut transportation costs. With the help of these technologies, companies can create intelligent vehicles which improve fuel efficiency and evaluate road conditions. 

Companies such as Fraikin have started incorporating autonomous tracking technology in their everyday logistics - Fleets to run routes to best efficiency. 

Driver Shortages 

In this era, anywhere in the world, fleet truck drivers have demanding jobs. If you are having a fleet company, you might know that Driver shortage is one of the major problems faced by transportation and logistics industry.

With the government’s most stringent restrictions, fleet companies tend to be selective for recruiting & hiring truck drivers. Moreover, companies are scrutinizing the applicant’s driving records - checking on inspection discrepancies & traffic violations, etc.

Overall, screening an applicant’s record is more important while hiring a driver. Otherwise, a company’s Compliance safety & accountability (CSA) could be negatively affected by low-performing hires. 

So, what is the solution?

There is one potential path in finding ways is that – Router optimization, which helps to maximize the effectiveness of existing fleet drivers within an organization. Moreover, integrating the software solutions helps planners to analyze data and utilize the essential resources.

Router optimization software solution reduces the stress of driver experiences, improve driver satisfaction & long-term retention. 

Rising Fuel Prices and Impact on Economy 

When the fuel price increases, the consumer will decrease and that impacts the logistics industry. (We know that freight/cargo fuel tanks aren’t cheap). In this case, technology helps when the logistics industry is facing an uphill battle. It is possible to manage the logistics budget on doing route optimization. Remember, when the mileage gets reduced, the fuel consumption decreases. 

Technology Advancements 

Adopting new technologies has become imperative for logistics companies. It also helps to minimize time, increase productivity, and reduce costs in the long run.

The tracking system enables the companies to monitor their transportation round the clock, get notifications, & set up customized reporting.

Data analytics helps improve customer experiences, operational efficiency & safety. On the other hand, IoT technology helps in reducing risks & ensuring safe delivery of goods. Moreover, it provides real-time visibility for trucks.

Thanks to cloud computing, the above software solutions are relatively inexpensive to overcome the challenges in logistics and transportation industry. 

Transport and Logistics Solutions to Reduce Risks 

Between driver shortages, rising fuel prices, and governmental push for increased sustainability and digitalization, transport & logistics will continue to be under pressure in coming years. Logistic players can overcome these challenges by integrating software solutions into business processes. 

Reduced Mileage & Transport Cost

Innovative software solutions enable companies to mitigate transport costs and huge savings could be achieved. To reduce the mileage, optimizing the routes helps to reduce the number of driven kilometers & thereby you can attain fuel consumption. 

Software Solutions Reduces Risks along with Supply Chains 

Logistics software solutions allow us to track vehicles in real-time and calculate the arrival time, and share the data with stakeholders along the transportation chain. The software boosts efficiency, planning security, and transparency along the supply chain. 

Being stuck in traffic, difficulty finding safe overnight parking, or delivery being too late – a driver’s life is always stressful and hectic. To endure these challenges, logistic software helps drivers that are facing daily. The software can easily navigate the driver turn-by-turn and routes suited to vehicle profile. 

About Fraikin - Fleet Rental & Leasing Company 

Fraikin is one of the leading commercial & rental company in Saudi Arabia. We also faced many challenges and optimizing our businesses with new opportunities and solutions. We access the latest technologies to manage the fleet vehicles effectively. 



leave a comment