Logistics Problems and Recommendations

Logistics Problems and Recommendations

Introduction

Let there be light be a company like any other logistics faced severe problem with the transportation of the lamps from the company to the port of Vancouver and then to the port of Shanghai China. It is important to note that the most common challenges in the transport industry are as a result of increased fuel costs in most countries, the insurance and legal feel payable and the technology involved in the industry. In the current trends, technology in logistics businesses has emerged dramatically. It is the responsibility of a logistic company to ensure it copes with the technology and remain budget-conscious.

Infrastructure

It is evident that logistic companies much depend on the government infrastructure in the running of their business. Most countries have invested in the developments of the roads, airports, railways and ports. In both developed and developing countries, the status of the mediums of transport has greatly affected this industry. An example of the united states government $70 billion budget for financial 2020-2021 for the infrastructure; this will increase the efficiency in transport hence reduce the cost of transportation by the logistics companies. In the case study; Let there be light company, there exist high costs of transportation of lamps from the company to Vancouver port and further to the port of Shanghai.

Skills and workforce.

As the logistic industry grows, the wages of the workers have stagnated at the same level. The industry has constantly been faced with a shortage of skills and an ageing workforce. Recently, the logistic sector has been left behind by other industry in acquiring technical skills as they do not attract most talents. A continuation of this trend will lead to a talent crisis. An example is DB Schenker in Australia, where most of its workers are aged 50-64 years. This makes the company ensure there are establishments of risk management strategies to support the aged workforce.

Technology

Technology has transformed the logistic industry, greatly enhancing better doing and easy way of doing business. With the introduction of technology like the tracking system in the vehicles and other mediums, logistics companies have managed to achieve better economies of scale than before. However, a report by PwC in the year 2017 showed that technology had presented a significant problem in the industry. Some of the highlighted challenges in the report were; an inadequate digital culture which affects up to 50 per cent of all logistics companies, shortage of skill and required talent to operationalize which affected 28 per cent of the companies in the industry and dangers involved with data security and this on affected 38 per cent of the industry.

Recommendations

Automation

Though technology, drone, advanced telematics and automated vehicles have been invented, and they give great hope for the future of the logistic industry. Companies like the uber self-drive truck and Amazon Air have adopted this technology. There are many companies like Tesla, Einride embarks, and others are waiting for the automated driving technology which being be tested by Ups venture to be functional and remove their driver, which is a cost-effective move. The drone technology already effects in Australia where it has replaced many technicians doing a manual repair of aircraft, maintenance and documentation hence cutting down the cost of maintenance. Drone delivery for small packages is also another recommendation that should be adopted by logistic companies to enhance in cost reduction. Alphabet Wing has done it, and there is expected drone airline UPs which will be the first airline to be drone driven.

Still, in technology, the use of supply chain visibility has become of great use and is recommendable for logistics companies to use it. The technology works in that, by using real-time data, companies can quickly respond to changes which save time and cost. The data includes port conditions, nature of the roads, environmental and weather conditions, and route traffic patterns.

Cyber insurance

With technology having the upper hand in the logistics business, the prevalence of global cyber-attacks remains a significant threat to the industry. In recent past companies like Moller Maersk, AP, TNT among others have been victims of cyber-attacks. In regards to this, logistics companies are highly recommended to involve the insurance company so that in case of attacks, there will be enough procedure to mitigate the loss.

Poor storage of data by logistic companies has in the past led to a fragmented ecosystem making it difficult for operations like transport to be digitized. This necessity has led to Digital Container Shipping Association have created data standards in container shipping to keep up with the changing times. The Digital Container Shipping Association main aim is to ensure efficiency in both customers and shipping lines through the formation of mutual information technology for digital interoperability. Other platforms that are in with the data management and efficiency include startups that are creating predictive analytic platform solutions. Data analysis and optimization include demand forecasting, proactive line overhauling plan, better chain supply visibility: unanticipated condition detection and improvements in the last- mile delivery. The incorporation of these platforms will enhance better transportation backed by transparency and ease, which will be a great deal to the logistics companies.