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Carriers and logistics service providers face age-old and huge challenges; not just in North America, but across the globe, says Steven Sykora, go-to-market director, Robert Bosch North America. These include visibility, communication, truck driver shortages and a lag in adopting the technology essential to do business with stakeholder partners.
These are global problems, Sykora notes. “Carriers in North America and Europe are short on drivers. The pandemic really highlighted this issue when consumer spending went through the roof. There was a lack of capacity from a driver and equipment and carrier perspective in all regions of the globe.”
Part of the challenge in solving these problems is that logistics is a somewhat “technology-backward” industry, Sykora says. American Trucking Associations data shows there are about 1.3 million licensed carriers in the U.S., more than 90% with 20 tractors or fewer. “Many of these small business owners do not have the infrastructure or the technical know-how to digitize their business,” Sykora says. “The cost is coming down, but the expectations are ever-increasing. The need to digitize their business is pretty dramatic. In fact, that oftentimes is the cost of entry into the business.”
Sykora recommends that carriers and logistics service providers take a look at their business holistically and understand what is their greatest pain point. “Do they have a need for a driver recruiting company, or a driver management company that can help them recruit drivers?” he asks. “Or maybe they have turnover problem. So what they should do is focus in on the retention process.”
In terms of technology, the biggest recommendation Sykora has is for logistics providers — whether they're a broker, carrier or asset-based carrier -—is to educate themselves on what is best in class.
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