Shippers, who are responsible for transporting goods from one location to another, face various challenges in their operations. Three common challenges faced by shipper customers include:
1. Supply Chain Disruptions
There are many different kinds of disruptions that can cause delays for shippers;
– Natural disasters such as earthquakes, floods, and hurricanes, can lead to a disruption of transportation networks and closures of plants or distribution centers.
– Logistical challenges such as port congestion, disruptions in shipping routes, and shortages of available carriers can lead to the flow of goods to slow down.
– Unexpected market changes like changes in demand for goods and capacity of carriers can cause significant disruptions in the supply chain.
2. Rising Transportation Costs
There are several factors that can contribute to the rising cost of transportation. Some of those include;
– Fluctuations in fuel prices lead to increased operational costs for trucks.
– Shortages of qualified truck drivers can drive up labor costs. High demand for drivers with a limited number of qualified drivers can result in increased wages.
– Limited capacity in transportation modes, such as a shortage of available shipping containers or congestion at ports, can lead to increased costs.
– Changes in transportation regulations, such as new safety requirements or environmental standards, can lead to additional compliance costs.
3. Capacity Constraints and Shortages
Shippers may face challenges related to limited capacity in transportation networks. This can be due to a shortage of available carriers, congestion at ports, or restrictions on certain routes. Capacity constraints can lead to delays in shipments and increased competition for available resources.
To overcome these hurdles, shippers need to engage in careful strategic planning, implement risk management measures, and embrace technological advancements to improve visibility and efficiency in their supply chain operations. Also, building partnerships with dependable and flexible logistics providers can help shippers navigate challenges more efficiently. Collaboration helps facilitate the handling of challenges, helps promote proactive problem solving, and contributes to overall supply chain optimization.
This blog was written by Sarah Christensen. Sarah is an experienced administrator that has been working within the customer based industry for over several years.