Analyzing Challenges Issues and Trends in the Logistics and Transportation Field

TRANSPORTATION & LOGISTICS FIELD --

Challenges Issues, and Trends in the Logistics and Transportation Field

The complexity of logistics in terms of the split channels, a higher variance in products and demand for customer focused solutions has been on the rise. There have been several trends that indicate that there are many challenges down the line as global trade becomes even more interactive and complex (Editorial Staff, 2013).

Trends

Studies point to the following trends.

Emergence of New Technology: Most companies have realized that there is need to make use of new technology. Research shows that 60% of major companies plan to invest heavily in data analysis tools in the coming five-year period. The tools are meant to enhance a holistic handling and precise and proactive connection of data so as to boost control and planning outcomes (Editorial Staff, 2013).

A Structural Change Freight by Air to Freight by Sea: The latest developments bear evidence to the fact that there has been an increased tendency to make use of sea freight compared to air freight. Air freight continues to be favoured when it comes to high value and low volume merchandise. Companies are increasingly searching for cheaper transportation options. The latter trend explains the shift in the preferred mode of transportation for many companies. Some of the conspicuous users of sea shipment in the recent past include electronics dealers and pharmaceutical companies (Nevhagen, 2014).

Environmental Sensitivity and Sustainability Concerns: The effects of transportation and transportation systems on the environment are a raw and current issue in the modern world. There is no company that aspires global or local presence, but can afford ignore green maters. Customers are keen to see companies explore alternatives that have less devastating effects on the environment. Governments and legislative authorities are exerting more pressure on companies to comply with certain laid out policies in line with environmental conservation (Nevhagen, 2014).

Utilization of Logistics Solutions in the Open Market: Companies are making use of alternative logistics solutions by outsourcing supply chain and logistics management input. Companies have realized that if they secure the services of independent companies for their supply chain and logistics, they will have released a lot of working space and time to focus on their main operations and business in general. There are more logistics people who specialize on specific sectors. Since different sectors have varying supply chain and logistics demands, they are increasingly seeking companies that fit their bill and requirements. Apart from the basic transportation aspect, these companies are also looking for experts in distribution and assembling of products (Nevhagen, 2014).

Issues and Challenges

Volatility: There is an increasing turbulence in the demand and supply aspect of business. This issue was demonstrated by economic downturn that showed how economic turmoil in one region of the world trickles and spreads to the rest of the world and causes equally dramatic impact (Editorial Staff, 2013).

Shortfalls in Talent: A shortfall in the number of people with logistics skills is regarded as one of the major challenges that face businesses in the future. In particular, shortages are foreseen in the controlling and planning segments. In the western world, particularly in USA and Europe, the shortage has been noted to occur as a function of demographics. In developing countries, stiff competition from such fields as finance and IT contributes to the shortage being experienced in the field of logistics. The best way to deal with the foreseen talent shortage is to train more personnel in the area of logistics and supply chain management. There is, therefore a need for strategic cooperation between companies, Universities and institutions that deal with research (Editorial Staff, 2013).

Globalization: As the global operations increase performance, reliability in delivery has declined because of increased customer requirements, higher volatility of markets and infrastructural issues. It is clear that globalization has magnified complexity and multiplicity of other related trends; especially in such growing regions as Eastern Europe, Russia, India and Africa (Editorial Staff, 2013).