Top 5 logistic challenges for the coming years

  1. Driver Shortage

Anywhere in the world, truck drivers have difficult and demanding jobs. With increased government regulations, companies tend to be more selective in recruitment.

Candidate’s driving records are scrutinized for traffic violations or inspection discrepancies, lest it has a negative impact on the company’s Compliance Safety and Accountability (CSA) score.

Currently, we are already experiencing a mild shortage of drivers across Europe and the US.

An emerging demographic crisis is also leading to a widening age gap among drivers, with the over-40s accounting for around a third of the workforce.

  1. Transportation Costs

This is the single biggest challenge for the industry since transportation constitutes a major chunk, about 30% of total expenses. However, with rising fuel prices, this can go up to 50%.

One way to combat this is by redistributing business among fewer carriers and negotiating for lower rates or consolidating shipments and getting bulk rates.

  1. Supply Chain Visibility

In order to have accurate, on-time deliveries every time is important to have full visibility of all aspects of the supply chain.

Shipments ought to be tracked, to ensure they are following the prescribed route and schedule, and in case of disruptions, notifications and alerts be activated so that prompt action can be taken. Customers need to get updates, viz., shipping notifications, ETAs, as well as be able to track shipments on a web portal.

Clients should have visibility of the entire work workflow in a warehouse – receipt of inventory, storage, order management and completion, and shipment.

  1. Sustainability

There is a considerable focus on reducing emissions, primarily due to anti-idling and emission reduction regulations by governments, but also on account of public perceptions and cost savings.

Adopting route and load optimization, tracking and reporting emissions, upgrading engines and choosing alternative fuels, are all ways in which we can make our services more sustainable.

The latest truck models come with the best engine performance, emission compliance and much better mileage.

  1. Technology Advancements

Adopting new and innovative technology solutions has become imperative for logistics companies. Given that labour is scarce, competition is intense and customers have become more demanding, technology advancements can increase productivity by minimizing time, cost and errors.

Automation systems and data-driven software solutions such as advanced packaging labelling, warehouse sorting etc. have become the need of the hour.

Data Analytics can help with Improving customer experience, operational efficiency and safety.

Robotics and autonomous machinery have been adopted by many, these help in drastically cutting down the time taken for order completion and delivery.


Given the above challenges, logistics companies can meet rising customer expectations, and still generate profits and growth, but it comes with a big push of investment and constant optimisation of processes.


How do we prepare to tackle these challenges?

Noatum Logistics keeps a dedicated team of experts, who monitor the market and create strategies to face any challenge that threatens to endanger the normal functioning of the supply chain. One of our most recent adjustments addresses the rise in fuel rates; it was set in place by our team to retain the fixed low (or even zero) rate fuel contracts with a number of our suppliers, including Yodel, Evri, Fast Despatch Logistics. This will further enhance cost savings across a supply chain, as some carriers are charging up to 40% fuel in the UK.


We have also seen a tendency in recent years, some companies are responding to the increasing costs in supply chains, like transportation or labour costs by turning to Near-Sourcing as a solution. By moving to nearby locations like Mexico and South America for USA or Turkey for Europe, companies can keep their supply chain within budget as opposed to outsourcing the activities to Asian countries for which transportation would represent the most inconvenience in both time and costs.


Regarding how we share information with our clients, we find it incredibly beneficial to use tools such as Blockchain to run organized and efficient operations. Blockchain offers an end-to-end solution to enhance supply chain transparency and ensure security.


In matters of technology, we trust Integro360 to keep track of all eCommerce final mile shipments, regardless of carrier. It enables our clients’ customer services team the ability to proactively monitor shipments, rather than react if things go wrong. Another particular advantage of this tool is the possibility to monitor performance throughout the confection of automated reports, which can highlight those matters that concern your operation the most.


Noatum Logistics has also the option of ‘out-of-home delivery’ to parcel shops and lockers. As we understand sustainability is a huge trend this year, we have secured cheaper rates for services with the least cO2 emissions so our customers can position them strategically as ‘free’ or ‘cheaper’ options on their website.


Our agents will be eager to explore any new strategies to optimise your logistics operations, don’t hesitate to contact us and find out more.