Even though there have been significant breakthroughs in the transportation and logistics industry, like self-driving trucks, drone deliveries, and warehouse automation, to mention a few, we can all agree that the bulk of the sector continues to be old-fashioned.
There's a long list of reasons behind this statement, but the main ones are:
- Resistance to change.
- Cost-effectiveness in current processes.
- The misconception that everything is fine as it is.
It's definitely all about old habits dying hard.
To ensure a more efficient and resilient supply chain, transportation and logistics companies must start leaving old habits behind and embracing change. But, to know how to do so, you must understand where you're wrong. Let's dive into the top four bad transportation and logistics habits stunting your business' success.
breaking old habits in transportation and logistics industry
- Lack of technology implementation
One of the most significant issues in transportation is slow technology adoption. Even though some companies invest in systems that allow them to be more efficient, many still stick with what has always worked for them.
In fact, according to The Last Mile Sprint: State of Mobility in Transportation and Logistics report, commissioned by SOTI, almost half (49%) of all transportation and logistics companies globally agree their organization has outdated technology, more than a third (37%) believe this has stopped them from sufficiently upscaling during the COVID-19 pandemic, and 36% of all companies globally agreed their organization would benefit from having improved real-time support for mobile devices during times of crisis.
There’s a need to transform business processes by implementing technology. Now more than ever, customers are choosing to work with tech-enabled companies. The great thing about technology is that it is scalable. Companies can start with smaller implementations and work their way up according to their needs, capacity, budget, and results.
- Inefficient communication
Effective communication is the building block of a good business relationship between various parties. This is extremely important within the transportation and logistics industry as it’s a sector that involves many moving parts. In communication, there are several areas to consider. The most important ones in transportation and logistics are clear expectations, choosing proper channels, and being open to feedback.
Ensuring you communicate effectively with your logistics partners from the beginning of the business relationship will help you avoid losing vital information and encourage you to improve your weaker areas.
Selecting the right communication channels is vital for this purpose. Speak with your business partners and decide on the best way to communicate, the frequency, and the type of communication required daily, weekly, or monthly. Clarity in communication will ensure issues are resolved quicker, and expectations are met.
- Lack of visibility
Visibility is crucial for business success. But it’s not just about shipment visibility or tracking; it must be perceived in a broader context. Visibility should encompass all areas of transportation and logistics.
There is currently many real-time tracking software, which tackle the visibility issue in the shipment tracking process. But considering transportation is much more than just moving a shipment from point A to point B, there’s still much to do to improve complete visibility.
Complete visibility refers to easily accessing essential data about any of the moving parts within the industry. For example, when a shipper needs to transport freight, and they’re searching for a suitable carrier, they should be able to access information about that carrier that will allow them to make an informed decision on working with them.
- Inefficient processes
This last bad habit is the result of combining the three bad habits above. Everything is a cycle in transportation, logistics, and most industries. If one thing is not correct, the next one will probably not be right either. Therefore, working on effective communication, implementing technology, and providing visibility are vital to ensure your processes are more efficient.
There are many processes to consider in transportation and logistics, and all of them could be improved, whether they are internal or external company processes. Finding ways to enhance the entire transportation process from start to finish allows you to provide better services and stand out from the competition.
Avoiding these four common transportation and logistics bad habits is the key to transforming your business and leading it to success. A catalyst for business development and growth is technology. Start with something small and then scale according to your needs.