Key Challenges to be Faced by Logistics Companies in 2021

The logistics and transport industry together are the backbone of the economy of any country. They are solely responsible for driving the growth and development of various sectors, such as manufacturing, agriculture, among many others.

This industry is experiencing tremendous transformation in recent years with the rapid influx of innovative technology. The focus has been on upgrading the technology to make transport more efficient and to provide a better experience to the customers. In this blog, we discuss the top challenges faced by transport companies and how they can work to overcome them in 2021.

  • Increasing transport costs

An increase in the cost of transportation is a major challenge for trucking companies in Dubai. Transportation often offers more than 30% of the total expenses. However, the rising fuel costs can take the expenses up to almost 50%. 

Trucking companies can consolidate their earnings by redistributing business among a few truck carriers and by negotiating to get lower rates. But this could enhance your over-reliance on other carrier companies for moving the goods. 

You can work to get bulk shipments at bulk rates to get better earnings but this may increase the chances of delayed delivery of goods, which would affect the customer experience. You may not have the ability to control the constantly changing fuel prices however, you can certainly control your expenses to achieve maximum earnings out of moving goods cross country. 

  • Improvement in business process

A recent study by a logistics company cited that almost 35% of the total trucking companies that were polled, agreed to rely on the 3PL partners for improvement in the business processes and to drive down the costs. 

This means that partners of fleet management Dubai need to have the required experience and knowledge to venture beyond the logistics and supply chain operations to bring about a change in the framework of the entire operations. Moreover, the logistics company in Dubai also needs to be stable financially, as well as open and flexible in taking risks for gains in the long term. Finally, the business of fleet management in Dubai is very competitive. That is why benchmarking the industry plays a major role in the improvement of the business processes. Therefore, you need to improve your business processes to find better returns with fleet management.

  • Enhanced customer experience

The logistics market has become more dynamic; the supply chain has become long and complex. Moreover, the expectations of the customer have also changed with regards to service quality and delivery timings. Nowadays, the customers expect that the logistics company in Dubai needs to also solve the transportation issues and aid in the growth of the company in this competitive business environment.

Therefore, a logistics company in Dubai needs to recruit skilled people who possess the right attitude and skills to provide a better customer experience. Moreover, companies for fleet management in Dubai should focus on standardizing and enhancing the user experience of the customer across different touchpoints, channels, and geographies via phone calls, in-person meetings, social media, emails, or online chats.

  • Improved visibility of a supply chain

To deliver goods on time and accurately, the trucking company achieves full visibility of each aspect of a supply chain. The shipments need to get tracked so that one could ensure that the goods are adhering to the prescribed schedule and route. If any disruptions occur, alerts and notifications could be activated to ensure prompt action from the transport company. Moreover, the customer also has to get regular updates on the status of their shipment via ETAs and shipping notifications. Additionally, they should also be allowed to track their deliveries on an online portal in real-time.

The trucking company should be able to visualize the whole workflow inside the warehouse, i.e. the receipt of the inventory, order management, storage, and completion of the shipment delivery. Additionally, companies should have proper visibility of future business trends. This could help them plan and manage their workforce accordingly.

With the proper implementation of technology and efficient fleet management, the top challenges can easily be tackled. This would make the logistics companies ready for the modern requirements of the new age clients.
If you want to know about the best company for fleet management Dubai, you must visit Trukker today.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Up ↑

%d bloggers like this: