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Look Out For These Logistics and Transportation Operation Trends in 2016!

Published on January 21, 2016 by in Blog, CATI

Convoy Semi trucks dry van trailers on winding highway interstat

Professionals in the field of transportation logistics work hard to minimize the time, cost, and resources associated with getting goods and services from their source to their destination.

There are many factors that affect the way goods are moved around the globe annually. New highways and railways are built, relationships between countries change, and new technologies emerge, requiring transportation companies to update their business models. In fact, technology has influenced some of the most dramatic changes in the industry over the past few years, with a steady stream of new software that has helped logistics management experts simplify many of their duties.

If you’re planning to pursue a career in transportation operations, staying on top of industry trends won’t only help you understand the industry better, but it will also give you a competitive edge in the job market.

Here’s a look at some of the trends you can expect to see in 2016:

Transportation Operations Will Benefit From Real-Time Inventory Management

The mobile Point of Sale (POS) system has helped retail companies drastically since its introduction. Employees are now able to use this mobile device to scan a new purchase right in the middle of a store, and the device will automatically update the store’s inventory. This saves employees from having to deal with line-ups at the cash, and having to run to the back of the store to check stock. Many of these systems also alert suppliers when stores are low on stock.

Once this technology completely makes its way into the transportation industry, real-time inventory visibility will save professionals with transportation operations training a lot of valuable time. This could mean that when a company’s fleet leaves with inventory, other sectors in the supply chain, like manufacturers and distributors, will be instantly notified.  Less time will be spent doing stock checks, updating the system, and placing orders. And of course, this means there will be more time for other business operations.

Sustainability Demands Will Affect Transportation Operations

A lot of companies have been making efforts to become more eco-friendly, and many consider “green” initiatives to be an important social responsibility.  In 2016, there will be a lot of focus on green initiatives within freight transportation companies, since the industry is known to produce a lot of pollution.

This year, the Environmental Protection agency (EPA) will outline very strict fuel emissions guidelines, which is going to be a big challenge for companies with large fleets. If you begin your transport operations career in 2016, you will likely be tasked with working with other members of the logistics team to help find solutions for new fuel emissions regulations.

Freight companies will likely begin using "greener" trucks?

Freight companies will likely begin using “greener” trucks?

Transportation Rates Will Increase

Some of the biggest factors to affect the cost of transportation include gas prices and high competition amongst carriers.  Both, FedEx and UPS initiated a general 4.9 per cent rate increase towards the end of 2015, which will take effect early this year—and many companies are expected to follow suit.  Once you break into the field, part of your role will be to maintain relationships with customers and reassess costs if you work for a company that will increase rates to generate more revenue.

Transportation rates will rise with gas prices to ensure that companies turn a profit.

Transportation rates will rise with gas prices to ensure that companies turn a profit.

Are you interested in enrolling in a top transport training school?

Visit CATI to learn more about our programs or to speak with an advisor.

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