The Main Challenges Transportation Management Sector Faces

Forest fires in Los Angeles close highways for days. Threats of a terrorist attack in Brussels halt all transportation. A “computer glitch” shuts down United Airlines system-wide for several hours on the same day that the NYSE shuts down. These are classic scenarios for today’s logistics & transportation executives whose jobs have turn out to be as much about dealing with a disaster and considerate technology than just about loading boxes on trucks, trains, ships, and airplanes. It has always been about moving product from point A to point B. But in today’s market of international deal and the emergence of complicated technology, the job of senior-level executives has become very complex, requiring skills that 20, 10, or even 5 years ago could not have been expected or even predictable.

As the methods and strategies following logistics and transportation will change, so will the criterion for C-level executives. And, it is occurrence at a dizzying speed. At present logistics executives must contract with new challenges requiring minute-by-minute tracking in all parts of the globe, rising cost efficiencies while guaranteeing opportune delivery, and anticipating troubles and having back-up plans. Add today’s sensitive security concerns and there is possibly no other business that illustrates “time is money” while running what are, at times, razor-thin limitations. All item for consumption in our homes and offices got to your shelves as a consequence of competent, safe, and rapid transport – some times in the same city while in other times from across the world. With the ongoing boost of international trade, the faces of these executives have changed from a man in a warehouse to someone in the board room with an considerate of robotics, inventory management, software/hardware, international customs, money exchanges, border treaty and security, to name a few.

The main logistics companies such as FedEx, DHL, and UPS, have helped bring the business to higher standards. These executives must also be visionaries simply for the reason that this industry is changing rapidly and it’s clear that the transportation & logistics segment of today will be viewed as a dinosaur within a few short time. Let’s first look at the home levels. For example, a local beer distributor is dealing with new systems that impact earnings on many levels. These companies now have complex warehouses featuring robotics labeling machines, and high speed conveyor belts. Every morning, drivers are given computer-generated routes that get products to stores competently and save fuel and maintenance on the vehicles. These routes are restructured frequently, re-routing trucks in the event of accidents or road construction. On this comparatively small level, the executive must be well-versed in management skills and have to fully appreciate how these efficiencies can be implemented, ensuing in more profitable operations. But as the distances for delivery augment, so do the logistical and transportation processes.

The following are some of the demands that executives must be able to deal with:

1. Inter-modal transportation that could engage compound sequences involving trucks, ships, planes, and then trucks. There must be faultless transitions that enhance deliver of speed, while cutback capital.
2. A data of international currencies as well as border treaties, piracy hot spots, taxes, regulatory laws, and government issues.
3. Safety measures since international shipping frequently involves product movement via unsafe areas. How can these areas be avoided? How can safety be secured for pilots, truck drivers, and crews?
4. Talks with transporters in other countries and understanding pay balance and impressing upon them the importance of timely deliveries.

There’s no doubt that today’s executive is different from those of the history because of the quality placed on speed and safety of deliveries not only in local markets but across borders into other countries. These efficiencies and systems convert into profits. Products are getting to the customer faster and prices can be managed better when processes effect in lower transportation expenses and less man hours. As a result of these new demands, more pressure is being put on executives running these operations. And, this sophistication has also been responsible for the introduction of college majors which are preparing today’s students to be the logistics & transportation executives of the future.

Taught by current executives, these classes have become quite complex. For example, a syllabus for the Supply Chain Management major at Lehigh University clearly illustrates the complexities of this field:

• Provides solid exposure to supply management, logistics, business-to-business marketing and operations management topics.
• Develops cross-functional team skills by integrating Supply Chain Management students with engineering students in the Integrated Product Development (IPD) program.
• Emphasizes advanced cost analysis, negotiation, product development, and e-business.
• Integrates core business courses with supply chain major courses.
• Provides field study and experiential learning opportunities.

Logistics and transportation is a growing field, one that will not plateau. Companies are always seeking faster and better ways to get product to market and on consumers’ shelves or in their driveways. It is a sector that requires ingenuity for today and vision for the future.