The logistics transportation sector plays a critical role in maintaining the global economy. Just consider what would happen if there was no one to send service providers’ and farmers’ products to consumers!
However, due to evolving customer expectations, technology advancements, and new, more stringent regulations, operators in the logistics transportation sector are confronted with significant difficulties, just like those in all other sectors.
Undoubtedly, the business has great potential for development and expansion, but before logistics transportation can fully take advantage of these possibilities, they’ll need to overcome some significant obstacles.
Key Challenges Faced by the Logistics Transportation Companies
Below mentioned are the major challenges faced by logistics transportation companies:
1) Cutting Down Logistics Transportation Costs:
Logistic transportation services can choose to limit the number of carriers they use and instead shift their load across fewer carriers, which comes with tradeoffs. They can also choose to negotiate for lower rates. Due to the logistics transportation company’s reliance on relatively few carriers, this strategy carries a risk. Getting bulk rates by combining shipments could also be beneficial. Consolidation, however, can also cause delivery delays, which negatively affect consumer satisfaction.
Additionally, logistics transportation can cut fuel costs. Although they have little control over fuel prices, logistics companies can cut their fuel costs by planning their routes more efficiently to cover less ground in a given day.
At Porter, we make a consistent effort to benefit both of our stakeholders. We have been able to help customers save money for all of their logistical needs by 20% while simultaneously helping to raise driver-owner revenues by 30%, thanks to our cutting-edge platform approach to resolving the capacity utilisation challenge in the logistics sector.
2) Driver Shortages in the Logistics Services:
Truck drivers have hard duties, which makes the driver shortage a big issue in the logistics transportation sector. As a result of the government’s stricter rules, logistics transportation businesses are being forced to hire and recruit truck drivers with greater care.
Employers must carefully review candidates’ driving records, look into inspection irregularities, and pay for traffic fines, which takes time and money. Additionally, there are insufficient drivers to accommodate everyone.
Finding ways to stretch capacity—for example, by upgrading routes so that each driver can make more deliveries in a given day—is one possible solution in this situation.
By increasing income and optimising vehicle use, Porter, a logistics transportation company, hopes to improve the lives of its driver-partners. The goal is to increase customer happiness and, in the long run, keep the confidence of their delivery partners by closing the current gap between demand and supply in the city. Currently, 3 lakh driver-owners are partners with Porter.
3) Navigating New Technological Solutions:
The majority of logistics transportation services must implement cutting-edge technology solutions to meet the problems posed by changing consumer demands and a labour shortage. Modern technologies are quickly replacing traditional ones because they can boost productivity and decrease operational inefficiencies.
Logistics transportation businesses might gain from investing in automation technologies like sophisticated packaging labeling and warehouse sorting to increase operational efficiency. In addition to lowering transportation costs, cutting-edge route planning technologies also optimise fleet capacity. Businesses may enhance operational effectiveness and customer experience by using data analytics.
Since there are so many products on the market, it can be challenging for logistics transportation services to choose the best technology. To determine what they require in a specific technological solution, logistics companies must evaluate their company activities.
Porter is developing more products with the help of new technology for a better experience. The back-end technology of Porter has an algorithm engine to make logistics transportation hassle-free and seamless.
4) On-time Product Delivery:
A logistics transportation company’s supply network may experience troubles if there are persistent concerns with on-time deliveries. Among these include manufacturing delays brought on by material shortages, needless expedited shipping expenses, and a backlog of client complaints.
Every aspect of a firm is impacted by the “routine” of accepting subpar on-time delivery performance, and this can permanently harm client relationships. A modern supply chain must have an effective logistics system to assist companies with inbound and outbound transportation, materials handling, warehousing, order fulfillment, and other tasks.
To eliminate the inefficiencies of conventional logistics, Porter has created an end-to-end automated tech stack. Vehicles can be reserved on the platform to deliver commercial goods and domestic items to companies, wholesalers, retailers/shop owners, and individual clients. It serves both B2B and B2C segments. Once the order is placed, the customer can track the progress of the delivery vehicle in real-time, add additional stops to the route as needed, and make payments online using UPI, net banking, debit and credit cards, and e-wallets.
To eliminate the inefficiencies of conventional logistics transportation, Porter has created an end-to-end automated tech stack. Vehicles can be reserved on the platform to deliver commercial goods and domestic items to companies, wholesalers, retailers/shop owners, and individual clients. It serves both B2B and B2C segments.