Top Canadian Transport and Logistics Industry Challenges to Watch Out for in 2019 – A Comprehensive Guide for Entrepreneurs
Today, logistics plays a very crucial role in smoothening trade facilitation and finally the business operations of other companies. There are several factors such as the growing demands of the client, changing needs of consumers, and complicated business models, which pose challenges for logistics companies. This gives rise to a very important question, which is how can a conventionally standard service be personalized according to preferences? This is probably the most ruling challenge that the logistics industry is facing since years. In the attempt to optimize the output, here are top four challenges that the logistics companies face:
4 Challenges Facing Logistics Companies
An increase in the prices of fuel leads to an increase in wages, which, in turn, elevates the transportation costs every day. So, the logistics companies will have to come up with a planned and strategic approach to get away with or at least cut down the costs for transportation. For the implementation of such strategies, logistics companies require information is reliable based on current and future orders. Visibility software is a very good option to simplify such challenges. Third party transportation agency which is cost-effective can be a very helpful option for small businesses who are looking to cut transportation costs. This can help small logistics companies to get away with the expenditure on maintaining vehicles for delivery. A small amount paid to the third party can take care of the rest.
According to the market intelligence experts at Infiniti Research, ‘cutting transportation costs’ makes the top of the list as far as challenges for transportation and logistics services providers go.
Improving customer service
For customers, transparency and punctuality in the delivery are the most important things to consider. Using technology and tracking systems, customers can track their parcel status and upload the same on social media platforms. Customers’ expectations have manifolded today and that is why they don’t mind paying a little bit extra for single day delivery. Therefore, to fulfill such expectations, logistics companies will have to come up with something unique and easy to provide the best customer service and retain their loyal customers.
Management is a task that is full of responsibilities and it becomes more challenging when it comes to manpower management. The humane approach is one of the most important requirements that should be adopted for managing manpower. When it comes to logistics companies, manpower management becomes even more challenging as the staff and drivers generally stay in different locations and a proper coordination between the two is highly needed for the swift and easy supply of orders. Here comes the role of decentralization of power into play. Logistics companies can appoint logistics managers in major locations and provide the solutions efficiently by time and team schedule.
Providing customized services
Management of logistics is something which cannot be done single-handedly. Rather it has several layers that need to be managed separately. Logistics companies not only have on-time deliveries as their core job deliverable, but they also need to provide customized services, such as packaging and pricing, which takes a lot of time. So, providing a personalized experience to each customer becomes a great challenge. Here flexibility plays a very important role.
To know more about the challenges faced by logistics companies
Transportation is one of the world’s largest industries. The services offered by the companies in this sector range from taxis to trucks, airplanes, trains, courier services, ships, barges, warehouses, and logistics. The transportation sector is now increasingly relying on artificial intelligence and robotics in the form of self-driving cars, trucks, and delivery vehicles. The growth of the global logistics services industry is directly related to the development of international trade flow and the current economic environment. North America and the Asia Pacific are known to be the most attractive markets for logistics services, especially when it comes to contract services such as third-party logistics. Additionally, intra-regional trade in developing markets is becoming important, especially in the Asia Pacific, and this, combined with high GDP rates, is expected to boost the growth of the logistics services industry.
Some of the other key factors influencing the growth of the transportation industry includes :
- Improved Customer Service: Today, customers want full transparency into where their delivery is at all times. Moreover, customer expectations have increased, and their willingness to pay for fast shipping has decreased.
- Technology Strategy and Implementation: While the logistics services industry supports and understands the benefits of the latest technologies, some questions persist as to how they will pay for it and who will help devise the improvements.
As a result, logistics services firms are leveraging the use of marketing strategy solutions to improve their position in the market. Marketing strategy solutions help firms within the logistics services space to address the requirements of the customer and accordingly devise new strategies to market the offerings and improve customer service.
The Business Challenge
- The Client: Logistics services company
The client, a leading logistics services provider with business operations spread across the globe, wanted to ensure that the services offered to meet the demands of the customers and gain insights into ways to develop profitable long-term relationships with them. Additionally, the client wanted to refine their marketing activities and devise an effective marketing strategy to attract new customers.
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To help the client improve their marketing campaigns, the market strategy experts at Infiniti carried out extensive interviews and discussions with leading stakeholders within the logistics services space. The experts also compiled information from a wide array of secondary sources such as paid industry databases, trade shows, company presentations, and industry forums.
The Solution Benefits and the Business Impact
The marketing strategy solution provided by Infiniti helped the client develop a robust marketing campaign that resonated with the target audience. The client also gained insights into ways to position the product in the marketplace and generate a better ROI. The engagement also helped the client devise a marketing mix to differentiate the offerings with that of the competitors within the logistics services space.
The Internet of Things allows devices to communicate with each other within an existing internet infrastructure without human intervention. Its application in the future of logistics services is expected to decrease waste, increase speed, and reduce overall costs.
Get in touch with our experts to know more about how our solutions can help your business