4
 min read

7 Major Challenges Facing the Transportation Industry in 2021

To avoid loss of demand, many companies must now face a few major challenges and tackle them head-on in order to thrive in 2021.

A woman typing in at a warehouse
Jessica Voigt

Jessica is currently the Documentation Specialist at Trans Plus. She has spent the last 3 years learning the ins and outs of the software as a Customer Support Representative and is now using her English degree to create content that showcases anything and everything that Trans Plus has to offer. When she isn’t typing at her desk she enjoys shopping, watching movies and tending to her extensive collection of houseplants.

In the logistics industry, managing the flow of goods from point A to point B can be a lengthy and difficult process. Just as well, technology is changing rapidly in this industry and consumers are ready for major transformations. To avoid loss of demand, many companies must now face a few major challenges and tackle them head-on in order to thrive in 2021.

Let’s take a look at these seven challenges in the transportation industry and how transportation management systems can tackle these issues.

1. New Digital Requirements

IT can be a pain point for many transportation companies. Many still stick to traditional logs, records, and paperwork. This is a problem, and digital requirements on a government level are also putting pressure on transport companies that are stuck in the dark ages.

TMS platforms are simple and user-friendly enough to help companies that are still using outdated tracking practices get with the times.

2. Industry Demand for Digital Transformation

Digital transformation involves taking a company’s traditional strategies and business models and examining what can be done to make them more competitive from a digital standpoint. This is a big reason why transportation management systems are such beneficial tools to implement into a transport business. Not only can a TMS present a number of tools that can replace old, outdated analog processes, but a TMS is also designed to be user-friendly across all departments-- for drivers, administration, management, and everyone in between.

3. Integrating the Supply Chain

It’s no secret that trade has globalized on an incredible level. Products are purchased and sold to and from different entities around the world. For this to even work, the transportation industry has had to examine trade flows and international politics, as well as ever-changing supply and demand.

Integrating the supply chain isn’t just about following trade policies. Transportation companies must also take into consideration the different points within the supply chain to prevent data silos. With transportation management systems, this can easily be managed.

4. Transforming Core Systems

Transportation companies must know what their core systems look like. They also need to know this before trying to implement disruptive technology into their business at any level. This can be a challenge, as many transportation companies grow disparately and stakeholders may have difficulty understanding the business as a whole. Transportation management systems can revive a company and modernize how its supply chain administration operates.

5. The Rise of Automation

Automation and AI are going to be big components of the transportation company of the future. From order fulfillment to driver tracking to product monitoring, automation can be a huge benefit to any transport company. Consumers and clients are pushing for these modern transport techniques as well. However, it can be difficult to pinpoint exactly what area of the company needs automation the most.

A TMS tackles and automates all of the relevant processes within a transport business. When you work closely with a vendor, they can determine what your real pain points are and what tedious tasks can be allocated to a TMS platform.

6. Improving Cybersecurity

As we continue through a digitally evolving economy, businesses are using technology and evolving digital tools more than ever before. Unfortunately, so are hackers and other cybercriminals. Transportation companies are not strangers to hacking, either. And many cyber attacks come from within the organization.

Without a decent transportation management system, workers can accidentally provide internal vulnerabilities that could lead to serious cyber attacks. Just as well, without a decent protocol in place, many workers may not follow specific processes to prevent such attacks from happening. This is an age-old problem that the transport industry has dealt with for a long time.

While there is yet to be a permanent solution to this problem, a transport management system is an excellent and secure tool to implement into your operations. TMS platforms are designed to be accessed only by authorized personnel, and the platform itself can be customized based on a company’s specific use cases and security needs.

7. Changing Customer Expectations

Consumer desires change with evolving technology. Just as well, consumers are more informed about transportation and relevant technology than ever before.

This means that they have bigger expectations, especially when it comes to communication and transparency. In order to offer the most value to consumers, transport companies will need to have a better grip on how new tech impacts the transportation industry and implement TMS platforms now.



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