Considering the current global situation, several issues are likely to impact the delivery times of shipments, particularly those in global supply chains. The same applies throughout the supply lines and demonstrates the importance of hiring experienced transportation management services for global supply chains. Forward-thinking transportation management services are constantly thinking of ways in which they can improve their logistics and distribution throughout all points in the supply chain cycle. However, progress can only be made if there is a clear understanding of the threats that are at hand. Keeping that in mind, here we are going to shed some light on the major challenges that impact transportation management in global supply chains.
Unrest in Ukraine
Russia's invasion of Ukraine has been the root cause of much of the global food price inflation that many countries are experiencing. The conflict has also thrown much of the world's supply chains into disarray, and that doesn't look like it's going to change any time soon.
While it was once a simple matter to outsource the production of goods to other countries, businesses are now thinking twice before importing from other countries mainly because of the uncertainty of whether or not their goods will be delivered on time or not.
Transportation Management Logjams
The importance of transportation management for global supply chains cannot be stressed enough. However, in recent times we have seen transportation logjams that further complicate logistics and distribution. Whether it's due to the pandemic or conflict, there is a growing number of instances where customers have got to deal with delivery holdups, shortages of containers, and even unexpected price hikes due to a surge in demand.
Needless to say, transportation delays can snarl customers and contracts, making it difficult for companies to live up to their client's expectations and their ability to deliver goods on time. A similar crisis arose when there was an obstruction in the Suez Canal which blocked that major trade route for weeks.
There have also been reports of container shortages due to various reasons, which caused a significant increase in container prices on the one hand and an increase in freight rates for goods coming from abroad. This is one of the main reasons why transportation management companies are now using digital tracking to minimize transport management logjams.
Poor Visibility
Transportation management teams almost always have poor visibility of the supplier's activities. The lack of PO visibility means either a limited or no influence on the PO shipment's execution. This also means that the transportation management team is left visually impaired right from the start, which is not good for managing a supply chain.
The communication breakdown that occurs during the initial stages of a shipment's execution remains one of the great hurdles that shippers and customers have to deal with. Communicating the status of a shipment from one point in the supply chain to the next is critical for transportation management companies to ensure optimal operational performance.
Additionally, communicating important dates such as ETA and ETDs is critical for the marketing, accounts, and purchasing department of the customer.
Climate Change
Climate change has resulted in many countries experiencing extreme weather. This is proving to be a long-term problem for transportation management in global supply chains. For instance, the drought last year caused the world's water levels to drop, which impacted major shipping routes.
Lowered water levels in major rivers around the world, such as the Rhine River at Kaub, Germany, means that ships were only able to carry a fraction of the usual cargo, while the rest was transported via road. The Yangtze River in China suffered a similar fate recently and has been closed to ships because of the water level dropping to 50% below the normal average. The Yangtze River is responsible for nearly 45% of China's economic output.
It is easy to see that extreme weather is becoming the norm, and it is predicted that it is only going to get worse. This means we will be faced with more storms, hurricanes, and other calamities that are going to hit major shipping routes across the globe and will be a big challenge for transportation management companies operating in global supply chains.
Poor Delivery Performance
One of the key areas that take a hit due to poor global supply chain visibility is delivery performance. The result is a series of events that result in delayed deliveries. Purchase order transportation planning is one of the most important first steps in transportation management.
Poor visibility remains a major challenge for transportation management companies. While in a controlled situation, 3PLs are assigned the task of monitoring the suppliers, who then arrange the shipment plans to the vendor. Carrier execution is another major hurdle that is faced by transportation management in global supply chains. This is why it is not unheard of for carriers "ghosting" shipments.
Border Delays
Another major challenge for transportation management companies is the inbound ports of entry. The flow of consignments through and from a port can be impacted by several reasons, including port congestion, custom clearance issues, and violation of government regulations.
However, these delays at the port can significantly impact delivery times. This is why it is crucial to hire an experienced transportation management company that's well-versed with global trade and regional trade regulations and can get your shipment to its destination by avoiding unexpected delays.
The transportation management of global supply chains may be faced with several challenges, but companies such as beam1st.com are able to provide solutions by embracing the complexities and offering a simplified approach to the transportation needs of global supply chains.
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