Thesis Statement - Logistics companies should adopt transport management systems to address various challenges in global logistics.
There are many challenges in global logistics.
One of the most critical challenges for global logistics activities is heterogeneity.
Among the various factors that make heterogeneity a significant challenge for prospective global logistics companies are infrastructure, security issues, intercultural issues, and personnel.
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Poor infrastructure in developing countries is significant for cost concerns since the share of logistics in overall costs is almost double in emerging economies, as compared to developed economies.
Intercultural issues and their level of perception is linked to the cultural distances between the target market and the home country.
The availability of personnel and their skills varies between one country and another.
Longer supply chains have more exposure to risk and possible disruptions. Natural disasters, changing tariffs, aging infrastructure across the globe, and health epidemics affect the volatility of supply chains.
Outcomes may not match to the planned activities.
Following shipments as they traverse the globe and upholding excellent supply chain visibility becomes tough when several carriers, modes of transport, and third-party logistics providers are used to ferry the goods overseas. This poses a challenge to global logistics.
Language and cultural barriers between nations, ports, freight forwarders, trade regulators, business-to-business partners, and third-party persons present a significant challenge on the management of global logistics.
Since commodities are continually being handed over from one provider to another, security in the logistics industry had been a growing concern.
Tightening capacity in domestic shipping and overcapacity in overseas shipping are challenges that prospective logistics companies are likely to face.
Currently, logistics solutions must address the continually changing customer needs.
People wanting to venture into global logistics face a risk of forgery, which takes on different forms.
Counterfeiters falsely label products, use inferior or fake constituents to make a product or misappropriate brands.
When consumers have no confidence in the provenance of a good, the manufacturer’s ability to sell goods is significantly undermined.
Lack of accurate data on shipping conditions is a challenge for global logistics.
Manual processes taking place at handovers are challenging for global logistics companies.
Transportation costs can also be a significant challenge to global logistics companies.
Various solutions to challenges of global logistics exist.
The fundamental solution to ensuring the security of goods is through a deep understanding of the position of products along the supply chain, how the products will be handled, and how frequently the products will be handled.
The best solution to challenges of information flow is the adoption of global transportation management systems (TMS).
The data-driven capabilities of a TMS assist in managing volatility.
A TMS decreases a supply chain's variability as more information made available improves the ability to ensure actual activities are reflective of the planned activities.
The improved and centralized controls of a TMS improve the visibility of a global supply chain.
Incorporation of artificial intelligence and autonomous tracking into its fleet can be used to track real-time data as well as with potential alternate paths to reduce transport costs.
Narrowband Internet of Things (NB-IoT) technology is a solution to the challenges of visibility and inadequate information on shipping conditions.
Intercultural management is necessary for any logistics company going global.
Conclusion.
Global logistics is a vast industry facing many challenges today.
Existing and upcoming logistics companies should consider adoption of technological inventions such as the NB-IoT devices to increase the visibility of their global supply chains.
Transportation Management Systems present the best solution in tackling a number challenges in global logistics. Logistics companies should therefore adopt them in their global operations.
