The Top 8 Logistics Challenges the Industry Is Facing

According to a third-party logistics survey conducted by Capgemini, ‘reducing transportation costs’ is at the top of the list of logistics sector priorities. There are a few other obvious annoyances on the list, but probably the most essential and at times difficult problem is the need for more innovation and technological advancements while being cost-conscious.

Here’s a look at eight of the industry’s most pressing issues.

Costs of Fuel

 Fuel prices are one of the most significant factors contributing to the ‘reducing transportation costs’ problem. Higher fuel prices are projected to drive up fuel surcharges, increasing transportation expenses for exporters this year. Rising diesel fuel costs are increasing freight rate surcharges, reversing a two-year pattern that saw truckers’ revenue and earnings decline as fuel prices fell.

Improvement of business processes

Despite the necessity for new technology, as we describe at number eight on this list, keeping up with new improvements in business processes has become a growing difficulty for the logistics industry. While taking advantage of these new options may sound appealing, adoption and onboarding can be challenging.

Customer service has improved

Customers want complete visibility into the status of their delivery at all times. Nowadays, a package’s location is as interconnected as your social network. In fact, as customer expectations have risen, so has their willingness to pay for speedy shipment, with only approximately 64% of customers prepared to pay extra for shipping that takes more than two days.


 High fuel prices are accompanied by a worsening credit crisis and rising inflationary demands, both of which wreak havoc on the Kenyan economy. Increasing compliance standards, decreased demand, and greater capacity with additional rises in major cost centers put pressure on this business.

Government rules and regulations

 Carriers must comply with a slew of rules set by federal, state, and local governments.

Environmental Concerns

State and local governments’ anti-idling and other emission reduction policies have raised concerns that the costs of compliance may outweigh the benefits.

Technology Planning and Implementation

While the industry recognizes and supports many of these technologies’ advantages, there are still some uncertainties about how they will pay for them and who will assist them deploy them.

We understand how difficult it is to deal with these issues. Outsourcing all or part of your freight and business processes can often provide the expertise, people, capacity, and IT systems needed to help cut costs, improve supply chain visibility, manage the supply chain more effectively, and achieve higher regulatory compliance. DDC FPO has the answers you need to ease your load.

Digital Services

We have a solution for you whether your company is little or large, you have an online presence, you’re looking to launch products/promotions, or you just need to update your site to stay up with the digital age. We have an experienced IT staff that can help you with application, web, and program development. Our highly qualified programmers can build programs in a variety of programming languages, including Ruby on Rails, PHP, iOS, and Android.

Billing for Freight

Make in-house freight bill entry a thing of the past. We offer a full-service offshore team of skilled billers, quality control personnel, and supervisory staff who specialize in LTL and Parcel billing.

The following are some of the advantages of using our remote freight bill entry solution.

  • Fully and partially automated algorithms that do not require human intervention
  • The accuracy of the bill entry process has improved.
  • Standardization that enables for the achievement of quality metrics
  • Adaptability to match your company’s specific demands Improved client experience
  • Cost-cutting measures that are both immediate and long-term

Auditing Freight Rates

Maintaining great customer relationships necessitates rate accuracy.

We can check, amend, and verify the accuracy of carrier freight bills. Expertise, scalability, adaptability, and system compatibility are all factors in our model. We’ll provide your back office with the knowledge and resources it needs to face the difficulties of tomorrow’s freight audit, thanks to our industry-trained workforce and broad range of service capabilities.

Processing of PODs

Give your customers the visibility they want while also freeing up internal resources. With our specially designed Proof of Delivery (POD) Retrieval service, you may check the status of your jobs’ deliveries from any web browser.

We can provide you with access to the following by using the knowledge gathered over twelve years of custom-building business process solutions for leading logistic carriers and transportation and logistics organizations all around the world:

  • POD photos that can be downloaded on the internet
  • Updates on the progress of your shipments
  • Administrative processes that are more efficient

Need logistics services? Contact Us Now