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3 Major Challenges Facing the Logistics Industry and Measures to Tackle Them

Today, global economics and logistics play a very crucial role in catalyzing trade and by, extension, ensuring the success of the logistics industry. The logistics industry’s landscape is huge and is made of many companies with a variety of services. The shifting preferences of the consumers, the growing demands of clients, and complex business models are a few factors that pose a serious challenge to companies in the logistics industry. Similarly, it can be said that personalizing a conventionally standard service is a humongous task and a significant challenge for companies operating in the logistics industry. In this article, we have listed out some of the major challenges in the logistics industry. Also, we have suggested a few measures to help logistics managers to derive optimum results.Contact US

Logistics Industry Challenges

Trimming costs of transportation

With the increasing prices of fuel and peaking inflation indexes, the cost of transportation is increasing daily. Trimming a few corners here and there does not always help in meeting the cost-cutting goals of transportation. So, there is a need to adopt a strategic approach to reduce or eliminate bottlenecks. This can prove to be pivotal in revitalizing network designs and can help cut down transportation costs. The use of a visibility software can help in simplifying these challenges in the logistics industry.

Managing the enormous amount of information

There are a lot of figures and data flowing in on a daily basis in the logistics industry. Such data helps in ensuring the safety of the staff and fleet, cross-checking route maps, fleet loading, sanctioning fuel bills, and so on. This can be a time-consuming and tedious process, if done manually, and can take your focus off from attention to details. This challenge can be overcome by investing in an automated solution or application for fuel bills, data entries, loading and unloading ledgers. Consequently, it can help in streamlining operations in the logistics industry by offering the luxury of time to logistics managers to look at the finer nuances of operations.Get More Info

Offering customized and segmented services

In the age of globalization, logistics management has become a multi-layered job where managers are expected to track multiple supply chains simultaneously. Apart from punctuality in the delivery of goods, offering customized services to customers and suppliers in terms of pricing and packaging is also very important. Here flexibility becomes the keyword to success. Using a software system to automate the process of projecting different services to different customers can save time as well as efforts. Additionally, it can bring added accuracy to data compliance and compilation processes.

Infiniti’s Solution

Due to factors like growing competitive pressure and rising fuel cost challenges, companies in the logistics industry are forced to consistently walk the tightrope of balancing price competitiveness and delivering a consistent brand experience. This has made it necessary for aspiring logistics companies to leverage market intelligence for developing effective strategies for growth. Infiniti Research, with its expertise in offering actionable market intelligence solutions, helps businesses to understand the local competition and gain actionable insights into formulating effective growth strategies.  Our flexible deliverable formats include online platforms with relevant infographics that help understand and assess the logistics market, globally.

Are you planning to drive reliability and improve delivery standards in the logistics industry? Request a proposal now.

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How are Autonomous Vehicles Going to Impact Public Transport?

Autonomous vehicles, a living example of driverless technology, will play a crucial role in shaping the future of public transport. These vehicles are expected to be completely available on the road by the beginning of 2020. Autonomous vehicles, with their arrival, will certainly impact the fundamental functioning of urban transportation systems along with public transport.

Basically, public transport agencies have two major goals:

  • Improve mobility across their respective areas 
  • Provide all their respective constituents with credible access to transportation


Over the past couple of years, public transport agencies have focused on these goals by running bus or train transport systems that are sufficiently subsidized by the federal and state government. While the public transport system is dealing with the traditional transportation services, the private sector has come up with new technology-based transportation options like Uber and Lyft that have completely redefined public transport. In the near future, there are many such private companies who are going to introduce autonomous vehicles to deal with on-demand and fixed route services.

Impact of autonomous vehicles on public transport

The rising popularity and use of autonomous vehicles will give rise to several intimidating questions such as:

1. Will autonomous vehicles make public transport systems obsolete?

2. What will happen to other mobility options when this driverless technology is broadly adopted?

3. Should public transport agencies reduce or stop their investments as autonomous vehicles subsume their demand?

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Top Fleet Management Challenges Bothering Fleet Managers

Fleet managers play a pivotal role in any transportation company or a logistics company when it comes to selecting and maintaining vehicles and keeping up with delivery and distribution schedule. Fleet management plays an essential role in the transportation industry as fleet managers strive to minimize risks associated with vehicle investment. Fleet management companies are always on the lookout to improve efficiency, productivity and reduce their overall staff and transportation costs. Successful fleet managers usually have years of experience in the field dealing with fleet operations, logistics, contract negotiation, fleet maintenance, and fleet management systems. However, fleet management can sometimes IR_Brochurebe challenging to deal with even after years of experience in the field.

Driver safety and productivity

Apart from fleet managers, drivers are another vital cog in the success of fleet management services. So it is essential to ensure driver safety for effective fleet management. Accidents on the road will not only pose a question of the driver when it comes to safety but might also damage the cargo and the vehicle, causing substantial economic losses. Fleet managers need to diligently use educational programs, regulations, and predictive analytics to ensure safety for their drivers, cargo, and vehicle. With a host of technology available including GPS, telematics, and sensors it becomes essential to educate the drivers on the use of such tools to minimize road accidents. Preventing such accidents deters not only the economic losses but also avoids potential downtime, which can hamper the service levels. Additionally, reducing the risk of accidents also helps keep the insurance premium costs down. It is always a challenge to hire experienced drivers with clean records and then train them to get acquainted with a host of new technologies.

Fuel price fluctuations

The cost of transportation or delivery per mile is one of the important metrics used by fleet management companies to determine the pricing for their services. However, this cost is highly unstable owing to the ever-fluctuating fuel prices. This impacts the final cost of the services provided, and transportation companies will often have to adjust their consumer pricing. It is almost impossible to forecast the fuel prices and, as a result, fleet managers will have a hard time managing budgets. One of the best ways to mitigate this risk is to switch to a more fuel-efficient vehicle. As a result, fuel price volatility will have little effect on the final prices. Also, the transportation industry is assessing the possibility of using electric vehicles on a large scale.

Managing geographically dispersed teams

Large commercial fleet management companies have operations spread across state lines and international borders. Fleet managers have a hard time tracking all operations and also communicating with drivers remotely. Additionally, locating each vehicle in the fleet can be a tiresome task as it may require continuous zooming and scrolling across a map. To combat such issues, the transportation industry is turning to technologies such as advanced mapping and spatial clustering to facilitate fleet monitoring.

Cost containment

A majority of the fleet management companies have already optimized their cost base. There’s hardly any room for further reduction as fleet managers would already have researched competitive alternative and selected the best fleet option. Additionally, reducing cost is a top-down approach and requires a strategic adjustment from top management. Apart from that, fleet managers face a lot of problem in dealing with driver reimbursement, resource sharing, vehicle maintenance, and lifecycle costing. Most of these factors are out of their control, which lead to budgeting and forecasting complications.

For more information on challenges faced by fleet managers in the fleet management sector, transportation industry, and logistics industry:

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Companies Laying the Groundwork for Drone Delivery

Last-mile delivery has always been a burning problem for players in the logistics industry. Added to that, rising consumer expectation hasn’t helped the cause. Consumers demand one-day or same-day shipping which can be logistically impossible or economically unviable. Even major logistics companies only offer few items to be shipped within a day. Furthermore, delivering goods via road poses many uncertainties including the unavailability of drivers and uncertain traffic and road conditions. So how can logistics companies effectively tackle such problems? One area such logistics companies are exploring is the viability of drone delivery. Drone delivery can efficiently solve the everlasting last-mile delivery problem. Additionally, the ability to operate autonomously saves companies personnel costs along with fuel costs. Although such companies are currently bound because of regulatory hurdles,IR_Brochure governments are looking at provisional measures to make drone delivery a reality.

Amazon Prime Air

Amazon CEO Jeff Bezos revealed plans for Amazon Prime Air in the year 2013 and completed drone delivery after three years in 2016 by delivering a parcel to Cambridge, England. To implement full-scale delivery, the company plans to use miniature UAVs which will be able to carry loads of less than five pounds and deliver within 30 minutes to locations that are within the 16km radius of an Amazon fulfillment center. The company is planning to roll-out the service on a small-scale depending on country’s regulatory rules. Currently, the most significant challenge facing Amazon Prime Air is its ability to successfully navigate more tricky urban environment to successfully deliver the package. Once they figure out a solution using AI and get regulatory approvals, drone delivery would become a reality.

Domino’s Pizza

Domino’s Pizza is testing the possibility of delivering a pizza by drone. They successfully performed a drone pizza delivery in New Zealand by partnering with drone delivery service startup Flirtey. Such delivery option will allow the food giant to reach more rural customers and improve delivery times in congested environments. Domino’s Group CEO advocated for drone delivery system stating that it doesn’t make economic sense to deliver a two-kilogram order on a two-ton machine. With the advancements in artificial intelligence systems, drone delivery can be the perfect option for delivering food to the consumers quickly and efficiently. Their current drones can deliver pizzas within 10 minutes to any location within a 1.5km radius of a Domino’s Pizza chain.

Ukrainian Postal Service

In 2016, Ukrainian Postal Service teamed up with Flytrex Aviation to begin testing drone delivery service in Ukranian cities. The drone, named Mule, is capable of carrying loads of up to 3kg to a distance of 23km. The drone can travel at a maximum speed of 70km/h, reducing the delivery time to a mere 30 minutes. The logistics company has deployed a unique release mechanism in the drone to avoid parcels being stolen or tampered. The drone uses a battery instead of fuel and saves a lot of cost in terms of maintenance and fleet management.


Mercedes-Benz recently unveiled the Vision Van, which employs two drones capable of delivering packages of up to five pounds within a radius of six miles. The company partnered with drone startup company Matternet to develop the Vision Van. The Vision Van would enable the company to increase its productivity up to 50% in last-mile delivery service. The mini aircraft has already successfully delivered more than 100 packages within Zurich, Switzerland. The company has invested about $597 million in an effort to speed delivery times for online orders.


Workhorse is an American electric mobility solution provider that developed Horsefly, an autonomous drone delivery system. The device is able to carry a 10-pound package for about 30 minutes flying at a speed of up to 50mph. It can deliver packages at a meager cost of $0.01 per mile in electricity costs. The company claims the drone to work even in rain and snow, but wouldn’t handle high winds particularly well. The company is looking for an ingenious solution to overcome US regulatory rules that demand drones to stay within line-of-sight by mating the technology with its electric delivery trucks.

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Where’s the Logistics Industry Heading in 2018?

The logistics industry is the backbone of industries such as retail, e-commerce, healthcare, and FMCG. Such sectors are highly reliant on the logistics industry to move their products across the world to maintain customer satisfaction. Increasing consumerism is pushing the logistics industry to deliver superior performance and offer services such as overnight shipping. For instance, UPS operates more than 2000 flights a day to more than 200 countries and territories, which enables them to receive a package late at night and deliver it by 8 AM the following morning. Apart from making strategic changes to achieve efficiencies, the logistics industry has embraced a host of new technologies to help them save costs and reduce wastages. So what are the upcoming top logistics industry trends for the year 2018?Get More Info

Top Logistics Industry Trends


The blockchain technology has made numerous headlines currently due to the exploding popularity of theBlockchain Technology in Logistics cryptocurrency Bitcoin. However, the technology has a wide range of applications because of the security and transparency it offers. The ability to record a chain of transactions that cannot be tampered with is especially useful in the logistics industry where the product goes through a sequence of custody handovers and transactions to reach its final destination. In such a case, it becomes vital to know who is responsible for the goods during each handover, which, in turn, enables package tracking as well as accountability. It is one of the most significant logistics industry trends that can potentially save companies billions of dollar when implemented on a mass-market level.

4 Trends Influencing Changes in The Logistics and Transportation Industry

If you compare the current logistics and transportation industry with that of a decade ago, you will see visible changes and growth in terms of development. It is now up to businesses to reap maximum benefits out of these developments to the advantage of their business in the most optimum manner possible. The recent advancements in technology and the increasing rate of globalization are some of the critical factors that have brought about these significant changes.  We bring to you a few other elements that we feel are impacting the changes and advancements taking place in the logistics industry.

Trends Influencing Changes in the Logistics and Transportation Industry

The e-commerce boom

The past few years have seen an explosive growth of e-commerce around the globe. With mobile phones taking over the world of the internet, customers can even shop on the move. This brings new business challenges in the supply chain and fulfillment of shipments for the transportation industry. This rising demand for goods globally is likely to spark more advancements and developments in logistics to fulfill the growing customer shopping trends.

proposalModern inclination of customers

The consumer expectations are rising by the day; with e-commerce companies like Amazon promising instant customer deliveries, the pressure is building up on the transportation industry players to deliver goods faster and at a much cheaper cost. Customers today also demand to get real-time tracking facilities and order status of their shipments, which forces players in the transportation industry to employ more advanced technologies into their operations.

The era of digital supply chain

Smart organizations are using IoT and various data-driven analytics in their supply chain to improve the customer service and maximize their efficiency. Companies can leverage advanced technologies such as predictive analytics to help them analyze and mitigate various unforeseen contingencies that may affect the business and the logistics cycle in the future.

Automated delivery of goods

The shift to industrial automation has proved to be a great boon for productivity. Various companies in the transportation industry have started experimenting with drones and vehicles with sensors to undertake and track deliveries. Automation will help in increasing safety, enhancing efficiency, and significantly reducing risks.

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What’s Changing in Cold Chain Logistics? 5 Trends That You Need to Be Aware of

With industries like food and pharma rapidly expanding, the players in these sectors are looking for new ways to make perishable items last longer and reach different parts of the world to meet the rising demand. However, logistics has long been a significant concern for manufacturers banking on cold chain facilities due to strict temperature requirements, capital-intensive equipment, and energy dependence. Furthermore, capacity and resource constraints, cost concerns, and matching the exact storage and logistics needs of each sector are some of the other challenges of cold chain logistics. Curious to know about the trends in cold chain logistics that manufacturers should be aware of?

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Cold Chain logistics trends

New Packaging Trends

Packaging remains one of the most crucial aspects of the cold chain process. The main reason for this being that the packaging decides how safe and fresh the contents inside remain till it reaches the end user. In the case of players in the pharma industry, the primary challenge is to balance the packaging and transportation cost; in this case, the more insulated the packaging the higher is the cost incurred. Manufacturers in the food industry are slowly shifting towards disposable and reusable packaging owing to the focus on ‘going green.’

Watch Out For The Regulations

There has been a sharp rise in the number of incidents pertaining to food safety and pharma counterfeit,s which are prompting governments to make stringent regulations on production and supply chains. This is one of the main reasons why various cold chain logistics providers such as Americold are investing in additional credentials and incorporating strict practices to adhere to the regulatory requirements.

Companies Are Shifting To ‘Power Saving’ Mode

Several players in the cold chain logistics business are looking for innovative ways to strike a balance between the energy-intensive requirements of products that are easily perishable and the need to reduce resource consumption. Therefore, these companies are investing heavily in researching and developing new ways to arrive at an optimum solution. Many players are experimenting with improvements in insulation, which are likely to give more savings and at the same time ensure energy efficiency.

Product Quality And Sensitivity Are In The Spotlight

As they say “ survival of the fittest,” customers today are more conscious about the quality of the products they are buying. What does this mean for players in cold chain logistics? This means that they have to ensure that the products should be prevented from any damage in the packaging or the quality until it reaches the final consumers. Therefore, manufacturers are relying on various cold storage techniques such as controlled temperatures to suit various products and the logistics cycle they have to go through.

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Trends That Will Revolutionize the Transportation Industry by 2050

Thanks to technological advancements and innovations, the transportation industry has drastically evolved in the recent years. The modified forms of transportation have made life easy, streamlined supply chain and logistics networks, and ironed out the global trade issues. The transportation industry, one of the important industries across the globe, is the backbone of global trade and logistics, which entails a wide range ofIR_Brochure activities right from transport, packaging, logistics, and warehousing among others.  The transportation industry is growing as manufacturers in the automotive industry are investing in innovations in automobile engineering and related research and development efforts. Emerging transportation industry trends such as connected cars, self-driving vehicles, and electric vehicles are also driving sales and profitability.

Emerging Transportation Industry Trends

The rise in digital proliferation has coerced the companies in the transport industry to analyze the market opportunities and study the competitive landscape to identify potential growth opportunities. Additionally, the increasing application of internet of things (IoT) within the transportation industry has also transformed the way people commute from one destination to the other. The latest trends and developments in the transport industry have transformed the transportation and automotive industry, driving efficiency and increasing connectivity. Self-driving vehicles, real time location tracking, and analytics are passé, let’s have a look at the emerging transportation trends that will revamp the transportation landscape,

  • Transport options like Hyperloop, a futuristic tubular system that shoots pod-like capsules from one point to the other at the blink of an eye will soon be a reality
  • Move over self-driving and autonomous vehicles, self-flying cars will soon exist in the near future. This means flying cars or vehicles will hover above the ground level at a specified altitude
  • Keeping up with the trend of self-driven and autonomous vehicles, driverless vehicles will be ubiquitous and the automotive industry will soon launch driverless pods that can be controlled with the help of personal smartphone or mobile device


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