The logistics and transportation industry is facing major challenges due to disruptions caused by technological advances and it is imperative for businesses to adopt these advancements as an enabler of future growth. The modern supply chain must evolve to meet new demands and supply chain challenges, and supply chain managers need to plan ahead to keep everything flowing smoothly. Using Transportation and Network Optimization for Continuous Improvement. The Transportation Supply Chain is Driven By Properly Integrated Technology Systems. Various parties in the supply chain move at different speeds and changing expectations and evolutions in the digital transformation economy (or fourth industrial revolution or Industry 4.0 or whichever term you prefer) simply make digitalization a necessity across the logistics, transport and manufacturing industries where digital and always-on supply chains are becoming the new norm. Supply Chain; Transportation; Supply Chain & Logistics: Smarter Transportation is Part of the Plan. According to a third party logistics study by Capgemini, ‘cutting transportation costs’ makes the top of the list as far as concerns for the logistics industry. Its processes are a significant contributor to every supply chain as it makes its way from the beginning of the supply chain to the end-user’s hands. With the mounting challenges in the industry, it can be difficult for supply chain and logistics professionals to even know where to start to make the right improvements within their transportation network. Most businesses would identify transportation supply chain visibility as a primary goal, however, it is sometimes used little more than a marketing term that gets used to simply impress those invested in the company. In an effort to manage their supply chain and reduce costs, oil marketing And if that isn’t enough to create a bias, maybe these well-known facts will: transportation costs represent the biggest slice of the supply chain cost pie (nearly 60 percent of every supply chain dollar is spent on transportation), and transportation costs can represent 3-12 percent of revenue or more depending on the product type and industry. Rather than being viewed as a supportive industry to other functional areas previously, now, logistics has been regarded as a strategic industry on its own. More than just transportation and logistics, there are other factors which impact the supply chain. Please read our latest article on 2019 supply chain trends that discusses the increased digitization of the supply chain catalyzed by startups. Customer Demand. While “top trends” lists are a dime a dozen, we think this one has some unique insights into the challenges and opportunities that will, or should, occupy the minds of supply chain … This phenomenon has complicated the retail supply chain, and retailers are continually looking for ways to optimize their supply chain. Solving Complex Global Supply Chain Challenges. The Challenges of Using the Internet of Things in the Supply Chain IoT devices rely on good network connectivity to function well. Here are some of the challenges supply chain managers face while managing the supply chain. Some other obvious pain-points make the list as well, but perhaps the most important and at times challenging concern is the need for greater innovations and technology advances while remaining budget-conscious. To learn more about the biggest supply chain challenges plaguing companies today and what supply chain leaders can do to mitigate risks and overcome common challenges, we reached out to a panel of supply chain … Sustainable and efficient transport. The findings show that challenges facing supply chain management in the oil marketing companies in Kenya occur in one or more of the supply chain components; transportation, equipment, communication, suppliers, customers, labor and finance. Global supply chain management also faces the challenge of variations in customer demand that occur seasonally and over longer time periods. In a recent survey based on interviews with 62 international supply chain executives as well as over 1800 respondents from the logistics and manufacturing industry found that the top priority for logistics managers was “meeting customer expectations” followed by “on-time delivery”. Today’s logistics customers demand flexibility and visibility. In the Asia Pacific region, the potential for growth is very promising. As companies look to amplify growth and expand quickly into promising new markets, they will have to take a hard look at what their current supply chains are capable of, and whether those capabilities are enough to support global competition. Big data can impact the supply chain and transportation industries and go further by defining new options and paths to pursue. The supply chain can also be affected by shortages of raw materials or product components and transportation problems. There are many more challenges facing the industry which must be tackled head-on. Now that the dust has settled on 2018, the pressures and priorities of the current year have become clear. Rather than isolating a company to known variables and possibilities, big data in the transportation industry is on the brink of making the impossible, possible. By knowing the activities involved in the scope of supply chain management, we can also identify the possible challenges and provide solutions to them. Most of these products are highly perishable, strongly price volatile and uncertain on demand. Supply chain management in the petroleum industry contains various challenges, specifically in the logistics area, that are not present in most other industries. Logistics in small islands: challenges for sustainable supply chain solutions George Malindretos Department of Home Economics and Ecology, Harokopion University, Athens, Greece gmal@hua.gr Abstract Small islands are striving for sustainable balanced growth and high quality services in the new and irreversible economic, social, physical and technological environment. Supply-side is marred by seasonality, cyclicality and uncertain weather. Technology is the greatest weapon in a supply chain's arsenal. Again, the solution can be found in visibility and, in this case, it's the visibility of the supply chain. Most businesses would identify transportation supply chain visibility as a primary goal, however, it is sometimes used to simply impress those invested in the company. It is a critical time in the transportation industry as modern challenges force many supply chain and transportation experts to rethink decades-old systems. Costs of raw products and components also tend to vary over time. At FedEx Supply Chain, our experts identify opportunities in your supply chain and work with you to develop best-in-class solutions to help achieve profitable growth. supply chain. January 19, 2018 . Despite of the The challenges you face are unique to your industry and company, and FedEx Supply Chain has the experience and skill to help you succeed when faced with even the most complex logistics challenges. Share: We’ve updated our outlook and brought you additional insights! Dave Blanchard. Technology alone isn't nearly enough to help manufacturers keep pace with the often dizzying plethora of changes, rules and roadblocks in the trucking industry. This is especially true in larger enterprises. Also, different clients have different priorities; some can wait but want a good deal while others are ready to pay a premium to procure immediately. Additionally, the ability to customize transportation and supply chain solutions to meet the exact needs of the customer is imperative in this highly competitive filed. #1 Cost Reduction Within the Supply Chain . transportation and warehouse management; providing a wealth of operational data along the extended supply chain. With Amazon having unprecedented buying power, allowing it to offer its products at often ridiculously low prices, it can be difficult, if not impossible, for other retailers to compete on their level. Challenge #1– Big Data Analytics and End-to-end Visibility . The Transportation Supply Chain is Driven By Properly Integrated Technology Systems. 1.Quality Customer Service While the industry always runs in cycles as the balance shifts between carriers and shippers, never before have reduced capacity and increased demand levels put such pressure on shippers. Effective supply chain management offers numerous benefits for companies, so overcoming challenges to keep things running smoothly is a top priority for supply chain professionals. Three of these challenges are variants on traditional transportation challenges and the last is relatively new but growing in importance. Furthermore, supply chain often needs to track and manage inventory from multiple warehouses, ... To address these challenges, transportation and logistics are moving from on-premise software solutions to invest in integrated cloud-based technologies that provides real-time data, accessible to the entire organization, regardless of location or time – including warehouse … The transportation management systems TMS market is growing right along with the number of challenges that shippers face in today’s hectic freight transportation environment, now is time to implement and upgrade transportation systems to stay competitive. However, transportation challenges have become the most addressed matters considering the rapid evolution of technology, manpower, demand, and supply… The fruits & vegetable supply chain is characteristically complex and complicated. Supply chain impact: These shifts toward shipment consolidation reflect lean inventory/transportation hybrid strategies in which lower transportation costs offset increased inventory carrying costs. Yet, most continue to face several key challenges in the area of supply chain visibility, analytics and planning. Expert Insights on 2018 Transportation Trends and Challenges. A modern-day customer is difficult to understand as they want products at a good price. Feb 04, 2014. This is especially true in larger enterprises. Challenges in retail supply chain #1 – Tight profit margin. Although the logistics industry won’t be able to achieve global targets by itself, it is important that the industry leads the way when it comes to sustainability. Supply chain globalization means that reduced transportation costs will be a major objective for many companies. A combination of consumer expectations, more routes to market, international complexities and other factors creates significant challenges throughout the supply chain network. Supply Chain Digital takes a look at the top three logistics challenges DPDHL predicts for 2020.. 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