Every time an individual delegates an assignment to someone else, there are risks that things won’t go as planned. Whether the task is as small as asking a child or roommate to do the dishes or as large as transporting sensitive material across the country, the risks add on even higher when shippers are dealing with government property. Legal regulations complicate shipping routes, modes, and expenses, adding to the red tape needed to cross state and country borders.
According to an early 2021 press release featuring industry-wide reviews, 24% of surveyed e-commerce organizations said that over 10% of orders must be re-delivered at least once. The survey also revealed that initial delivery failures cost retailers an average of $17.20 per order or $197,730 per year. This loss can be devastating within government logistics as shippers work knowing that tax dollars are riding on every load. Let’s consider five risks and solutions to government logistics and transportation that can apply to the experienced government contracted shipper or the shipper wanting to enter the government logistics market.
Economic Impact- More Demand and Focus on Financial Security
As the economy continues to recover from COVID and regulate from the ongoing impact of the Russia-Ukraine War, it might feel as if the phrase “Every penny counts” has been inflated to “every dollar counts.” Consumers no longer consider purchases and contracts as expenses but as future investments. Shippers can overcome this through creative shipping solutions such as dedicated transportation management with a dedicated account rep to ensure that government logistics loads are getting the attention they deserve at an affordable rate.
Driver Wages- Better Delivery Services and More Expense Management
One of the positive things that came out of the pandemic was a genuine appreciation for all that truck drivers do to support the economy and people’s way of living. Improved driver wages and work conditions have been a significant step in the right direction, yet those changes add up to costs passed onto shippers. By partnering with value-based carriers at every level of intermodal transportation, government logistics shippers can focus on streamlining other administrative responsibilities to maximize cost savings.
Complicated Regulations — Laws and Guidelines Always Change
Changing regulations is often considered the most troublesome among the typical transportation management challenges. Laws can change quickly and without notice, and government logistics shippers cannot skirt these haphazardly. Thankfully, modern technology has provided essential tools that shippers can place in a driver’s pocket to ensure that even shipments made across borders get successfully made without losing valuable time or money to failed requirements.
Fuel Use and Emission- Sustainability and Eco-Friendly Focuses
“It’s not just a phase!” While hearing that phrase may make adults in the house roll their eyes, the eco-friendly movement that started in the 60s has proven that it is here to stay. As consumers and politicians demand better visibility into the carbon footprint of every product, government logistics shippers have to walk a tightrope of reducing emissions in an industry marked by exhaust fumes. Shippers can overcome this challenge by leveraging full truckload or less-than-truckload for the right shipments with smart route planning that dynamically adjusts to delays.
Technological Advancement- Innovation and Automation Options
When the first smartphone debuted in 1992, few knew the ramifications of this development. Yet thirty years later, smartphones are standard, and automation is a driving force behind ATMs, social media, logistics planning, and more. Because the supply chain was slow to get on board with technology, today’s government logistics shippers can overcome this challenge and gain a competitive advantage by investing in digital freight tools that integrate into a streamlined tech stack.
Master Freight Logistics and Monitoring Today With Insight and Guidance from Wicker Park Logistics.
While there are risks associated with every freight movement, shippers can lower these risks by partnering with the right team. Wicker Park Logistics provides a comprehensive 3PL solution based on prioritizing visibility with the best technology tools and a trustworthy and experienced team. Eliminate some of your government logistics contract risks and speak to an expert at Wicker Park Logistics today.