A recent survey conducted by Kuebix found that the drive shortage/capacity crunch will continue to be the biggest challenge for supply chains in 2019.
Out of 554 submissions from transportation and supply chain professionals, the capacity crunch/drive shortage received 44 percent of the votes, with rising freight costs capturing 24 percent of the votes. Meanwhile, managing customer expectations gathered 10 percent of the votes, while lack of visibility and collaboration securing 8 percent. Final mile shipping and implementing a TMS received 7 and 5 percent of the votes respectively.
The American Trucking Association estimates that the driver shortage will grow to over 100,000 by 2022 as drivers continue to retire and businesses struggle to recruit and retain talent. Adding to that, the growth of e-commerce is also increasing the need for capacity as more consumers order online and expect rapid final mile delivery to their homes.
"At Kuebix, we understand the changing landscape of the supply chain industry," says Dan Clark, President and founder of Kuebix. "Companies need to leverage technology to continue meeting customer expectations and budget demands during the capacity crunch and driver shortage."
By using transportation management systems, companies can gain access to additional truckload capacity by connecting with a large community of brokers, carriers and private fleets. Advanced TMS offer applications such as order and route optimizers that allow shippers to use their available trucks in the most efficient way possible.
The driver shortage and capacity crunch is expected to worsen over the next few years. During 2019, companies need to position themselves with the necessary tools to grow relationships with carriers, secure much needed capacity and maximize the trucks they are able to secure.