The state of the trucking market in 2021 is unpredictable, filled with risk, and continues to evolve, making logistics management challenges. Let’s consider these top factors affecting the trucking market, their implications on supply chains and how they are driving change within the industry. This blog describes the state of the trucking market. Readout this article for your all doubts
Capacity constraints continue to come under the microscope as shippers look for a better understanding of the state of the market. Top causes of capacity constraints include:
One of the most critical aspects of strong OTR freight management and operations is proper carrier collaboration and partnerships. Finding carriers that meet specific needs and help the company reach supply chain goals provides a competitive advantage within the marketplace. Proper vetting of carriers helps ensure risk management, and creates are the liable network for future growth, scalability and flexibility.
The value gained from rapid scalability and collaboration is critical for the modern supply chain. With demand for drivers often exceeding availability, shippers find themselves forced to pay more to secure capacity and drivers across many industries. Many faced repeated price increases of more than 10-15 per cent over just a few years ago. Leveraging a 3PL’s relationships, people, processes and technology helps businesses balance supply and demand volatility and secure reliable and consistent capacity.
With driver shortages still impacting the industry and continual fluctuations with supply and demand balances, it is more important than ever for OTR managers to get on board with remote tools and digital services. Delays and congestion worsen each year, inventory strains continually affect capacity, and customer needs remain ever-changing. In today’s freight market, OTR freight services enable continued growth and success. Focusing on the transportation metrics that have the greatest impact on the supply chain can help managers stay attentive to both short-term and long-term goals and needs.
Access to real-time data and the ability to perform real-time analysis enables businesses to make data-driven decisions to drive efficiency into the supply chain. Descriptive analytics focuses on utilizing historical data to understand events that transpired and what happened within the network over a set period. Predictive analytics makes predictions about future outcomes based on historical data, statistical modelling, and machine learning. Prescriptive analytics works based on technology to help management make better decisions about current or future choices that will impact the supply chain network. All three of these analytical types are critical to supplying chain strategy, but many businesses lack the resources and tools to use effectively. Leveraging a 3PL to analyze and provide data-driven recommendations helps businesses create continuous improvement of their supply chain in today’s highly competitive market.
Outdated methods of tendering, capacity procurement and freight management no longer work for today’s high-pressure and technologically driven market. Cloud-based TMS systems and innovative tools streamline shipping operations, allow for fast and reliable monitoring and control of global supply chains and OTR transportation optimization options anytime, from anywhere.
The state of over-the-road transportation continues to challenge supply chains with capacity, driver and labour shortages, increasing fuel prices and unpredictable weather and pandemic related buying patterns. Knowing what’s happening in the market and what you can do to mitigate volatility will help your team and business thrive through disruption.