The transportation market has been experiencing turbulence for some years. With constant ups and downs, the biggest challenge is managing logistics effectively to lessen the impacts. Carriers claim that the significant drop in cargo movement and transportation is primarily responsible for the economic downturn in this market niche.
In addition to constant challenges coupled with the crisis, we have a history of scarce infrastructure and periodic needs to expand the level and quality of services provided.
Among the main adversities, we can mention:
- General problems and conflicts with public safety;
- Low-education or low-training workforce;
- Deficient infrastructure;
- Difficulty accessing distribution areas (streets, alleys and highways);
- Heavy traffic and excessive traffic;
- Among many others.
However, amidst the adversity, a silver lining emerges: companies and carriers have realized the need to pay more attention to logistics! As a result, they’ve realized that management alone would lead them to bankruptcy. New strategies are not only necessary, but always welcome!
Some trends have emerged as a way to overcome the crisis, including the famous reduction of excessive costs. Check out some of these solutions:
- Increased specialization of employees;
- Smaller loads and more flexible delivery times;
- Investment in modal transport (mainly road transport);
- Reduction in shipping costs, placing price and quality of service as a differentiator.
It’s up to entrepreneurs and investors to give the country’s transportation sector a new direction. The crisis, combined with a lack of investment, impacts the flow of companies, which quickly become uncompetitive.
How are you using strategies to benefit your business? Your decisions matter a lot!
Count on FEX to always ensure the best for your company and employees! Transportation and industrial products for first-class quality!