There are many reasons why organizations chose to review their Logistics program in 2018: rising transportation costs, proposed tariffs on imported goods, a reworking of NAFTA, an uptick in manufacturing, and an overall increase in economic activity brought on by low unemployment and renewed consumer confidence.

As freight issues and transportation spend are put under the microscope from the C-Suite, it is the perfect time to review your Logistics Technology and make an update.

Below are the 9 most common objections to updating Logistics Technology – Debunked!

The world is getting smaller.

The potential reach of even the smallest business today far exceeds what it was a couple decades ago, and as such, logistical challenges that previously only larger businesses experienced, have trickled down to SMBs worldwide.

Thanks to 21st century technology, businesses that previously only served a small geographical range now have access to potential customers across the globe. With increased supply and demand, it is no secret that most companies today experience extreme complications and inefficiencies in their supply chain. As with any integral aspect of a business, managing and maintaining an effective supply chain requires time, knowledge, and money – your company’s most important resources.

Times are Changing

Imagine you are a manufacturer with a truckload of product ready to be shipped off to its destination.  The issue, though, is that you do not have a truck to transport your product. So you begin the search for a carrier, fully confident that you will find a carrier suitable for transporting your precious freight. However; every carrier you contact refuses to even look at your freight, much less carry it.

Why is this the case? You never had an issue with contracting a carrier before.

Whether your transportation operations are completed in-house, via a TMS, or through a logistics provider, chances are you will have some shipments that require more attention than others. One such instance that requires more attention is shipping high-dollar freight. When you need information on shipment insurance, it is of the utmost importance to defer to the carrier’s tariff and email the carrier’s customer service. An email provides a paper trail from the carrier which you can refer to in the event something goes awry.

In the world of trade, the company with the ability to transport freight in the most cost and time efficient manner reigns supreme in their industry. Therefore; an essential part of transportation management lies in building an efficient supply chain from the six main modes of transportation: road, maritime, air, rail, intermodal, and pipeline. Understanding the strengths and weaknesses of each mode is paramount to building an effective supply chain.