Given the changes that the logistics and transportation industry are currently undergoing, efficiency and quality of service are becoming increasingly vital for companies that want to stay viable. While this includes utilizing new technology and data as it becomes accessible, there’s more to these improvements than simply downloading the latest software.
The question that many logistics decisions makers have to answer is simple. “Where do we begin?”
While it’s true that companies have to make a number of the decisions, they aren’t the only ones responsible for creating a working system. In fact, the government also plays a big role when it comes to facilitating transportation. A new guide, which has been created by The World Bank and the International Road and Transportation Union, for government and policy makers alike, has listed some definitive steps to not only boost efficiency but also make freight transportation more viable as a whole.
Definitive steps to not only boost efficiency but also make freight transportation more viable as a whole
The Positive Effects of Deregulation
Regulation for the freight industry is important, at least to a certain extent. Environmental and Safety regulations are not only good for the industry but also keep the world and the people around it safe. However, ‘over regulation’ can have some serious consequences if the government overextends its reach.
“According to a 1988 Federal Trade Commission (FTC) study, the restrictive regulation of trucking drove prices up and encouraged inefficient practices. Trucking regulation increased freight rates by one-third to one-half and increased the freight bill to U.S. industries by $5.5 to $7.3 billion per year,” the World Bank study says.
Spiking prices this way not only means a higher cost of good for the consumer but also a higher operation cost for manufacturers, shippers, and carriers alike. By reducing these regulations there is a general cost reduction across the board, starting with the creation and eventual sale of goods from manufacturer to end consumer respectively.
Safety Regulations, Electronic Logging Devices, Hours of Service, Etc…
The government certainly has their hands deep in the transportation industry pockets. With rules and regulations changing so frequently, companies that ship need to be aware, or their freight costs may skyrocket.
Electronic Logging Devices or ELD laws will be implemented later in 2017 and with the Hours of Service ruling not completely out of the picture, shippers will surely feel the the effects. Working with a third-party logistics (3PL) provider can alleviate some of these safety regulation bumps in your supply chain.
A 3PL works for you and makes your business better.
When you partner with a third-party logistics (3PL) provider, you don’t have to worry about staying on top of new rules and regulations. Your 3PL does that for you. The role of a 3PL is to make your business better.