With 2021 right around the corner, most shippers are still fully-engaged in trying to finish out 2020’s shipping needs as efficiently and cost-effectively as possible. Everyone has done the best they can weathering the freight storm of 2020, but many are wondering if 2021 will bring that much relief or be as volatile as the past 10 months. We at M&A don’t have a crystal ball telling us exactly what 2021 will bring, but we do have a fair forecast of what to look out for in the next year.
Your company produces a great product and you need to get your product to your customers. additionally, you need complete control over shipping that product. But do you have complete control? It isn’t enough to package, schedule and maintain visibility of each load – you also have to understand the tariffs of each carrier and know when you might be on the hook for any unexpected fees.
With all the uncertainty revolving around the logistics industry there is one thing that is constant – freight rates are rising. According to a report issued by Bloomberg midway through this year, spot rates have increased by 28% compared to 2017. Trans4cast reports that rates continue to make new record highs with no end in sight. It is projected that rate hikes will slow down in 2019; however, with a slew of new tariffs coming into effect in January, and FedEx and UPS announcing rate increases of 4.9%, it is clear that shippers will not be able to catch a break any time soon.
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.