With the majority of trucking companies operating in a state of uncertainty, there are a lot of questions about where the freight industry is and where it’s heading in 2022. It’s no secret that the freight industry is ever-evolving, with new technologies and changing shipping trends. The shift to online shopping and increased demand from consumers means that most businesses are responding continuously by adjusting their operational capacity to meet consumer needs. This agility is what allows the market to continue its impressive trajectory upward despite the number of constraints along the way.
Understanding and preparing for what will happen in the coming months will be the best bet for those who wish to avoid unnecessary challenges.
Investment in Technology is Becoming a Necessity
In a world where technology is being rolled out faster than most people can keep up, there are good reasons for companies to keep an eye on new technologies to integrate. With the development of Artificial Intelligence in freight logistics, competitive edges will only continue to grow.
Inflation is Driving Costs Higher
Shipping costs are on the rise. Fuel costs are higher. Parts are harder to find. The inflation rate is affecting everyone. It’s no wonder that market predictions coming from economists have been warning companies to prepare for times of loose footing.
The remedy that is less talked about comes down to two things. First, building a defensible business that compensates for predictable market fluctuations. This is also known as building a moat. The second remedy requires companies to occupy positions that enable companies to be agile and competitive. Think technology adoption, regularly scheduled contract re-negotiations, company-wide ‘solution hunts’, etc.
Consumers Are Expecting Faster Delivery Times
Instant gratification has made it so that consumers expect their products to arrive nearly instantly. When customers are expecting an Amazon Prime level of delivery times, it puts a lot of stress on outdated supply chains that haven’t yet expanded their delivery footprint throughout almost every city in the country. Consumers who face inconveniences or inefficient service are quick to find new providers. That’s why prioritizing your company’s ability to be agile is essential when exploring opportunities that afford Asymmetrical return potential once integrated. For those that are unfamiliar, Asymmetrical risk is the concept of taking a risk that will produce a return that far surpasses the risk taken.
Companies that are still using outdated technologies should explore options with more modern features and benefits. There are also a lot of valuable developments happening in the world of system automation and optimization. As the industry continues on a track of uncertainty, company owners and supervisors should be making decisions that will have long-lasting benefits and reduce workloads so more focus can be placed on internal challenges like driver acquisition and retention.
DOTReady Fleet Compliance Services
Although DOT-Ready positions itself as a fleet compliance service provider, we also help companies optimize internal processes that lead to higher profits and safer trips.
We would love the opportunity to discuss how we can save your company thousands of dollars a year and increase efficiency by double digits in certain departments.