Analyzing Challenges Issues and Trends in the Logistics and Transportation Field Essay

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TRANSPORTATION & LOGISTICS FIELD --

Challenges Issues, and Trends in the Logistics and Transportation Field

The complexity of logistics in terms of the split channels, a higher variance in products and demand for customer focused solutions has been on the rise. There have been several trends that indicate that there are many challenges down the line as global trade becomes even more interactive and complex (Editorial Staff, 2013).

Trends

Studies point to the following trends.

Emergence of New Technology: Most companies have realized that there is need to make use of new technology. Research shows that 60% of major companies plan to invest heavily in data analysis tools in the coming five-year period. The tools are meant to enhance a holistic handling and precise and proactive connection of data so as to boost control and planning outcomes (Editorial Staff, 2013).

A Structural Change Freight by Air to Freight by Sea: The latest developments bear evidence to the fact that there has been an increased tendency to make use of sea freight compared to air freight. Air freight continues to be favoured when it comes to high value and low volume merchandise. Companies are increasingly searching for cheaper transportation options.

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The latter trend explains the shift in the preferred mode of transportation for many companies. Some of the conspicuous users of sea shipment in the recent past include electronics dealers and pharmaceutical companies (Nevhagen, 2014).

Environmental Sensitivity and Sustainability Concerns: The effects of transportation and transportation systems on the environment are a raw and current issue in the modern world. There is no company that aspires global or local presence, but can afford ignore green maters. Customers are keen to see companies explore alternatives that have less devastating effects on the environment. Governments and legislative authorities are exerting more pressure on companies to comply with certain laid out policies in line with environmental conservation (Nevhagen, 2014).

Utilization of Logistics Solutions in the Open Market: Companies are making use of alternative logistics solutions by outsourcing supply chain and logistics management input. Companies have realized that if they secure the services of independent companies for their supply chain and logistics, they will have released a lot of working space and time to focus on their main operations and business in general. There are more logistics people who specialize on specific sectors. Since different sectors have varying supply chain and logistics.....

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