Transport Logistics Case Study

995 Words 4 Pages
Key trends in the transport industry which will have a significant impact on the logistics industry in the future.

The logistics industry faces many problems towards reaching sustainability. Nationalisation and globalisation in recent years has placed an important role on logistics in the economy. Transport occupies a large amount of the South African logistics GDP costs. Although transport logistics is a strong contender in the overall logistics operations, it does face several problems and trends are starting to become visibly clear on the future of transport logistics as a whole. Transport logistics needs to provide an efficient yet effective way to distribute and maintain a competitive advantage in the industry. There are several key
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Sustainable development will become more of a clear objective in the business model as the whole concept of carbon reductions is playing an increasingly vital role in today’s economy and will be forever increasing in the long run, with many of the earth’s natural resources that are sitting at a dire state with economies relying heavily on these resources, they are sitting on the edge leaving companies to seek new and innovative ideas that will support sustainable development in the long run as well as reduce carbon emissions. The earth is at a critical state with many of its natural resources hanging in the balance, it leaves companies to seek out different methods of transportation. The concept of renewable energy sources has graced many headlines with alternative fuels such as bio-fuel and electric cars, organisations will be looking to incorporate these products into their logistics operations which could result in cheaper transportation costs due to the increasing petrol prices, companies will definitely be seeking out alternative methods such as electric cars (trucks) as a substitution for regular fuels. Carbon pricing will become a norm in the industry and it will come with a price tag. Companies will start to choose suppliers who have carbon reduction policies in place and in the …show more content…
Benefits of information technology are becoming increasingly aware to businesses due to prices of information technology decreasing and the ever so increasing existence of a virtual world. Logistical managers can make use of the technology to trace current freight trucks on their routes and guide the drivers via GPS satellites and telephone calls on the fastest yet most efficient route to their destination. This increases reliability of a timely delivery and customers will perceive the organisation as a dependable supplier and result in good customer service. During times of crisis such as accidents on the roads, managers can quickly dispatch an ambulance to the scene of the accident and the fastest possible route to the hospital allowing for effective crisis management. The new technology age also allows payments to be made electronically via the internet which allows a company to expand its target market on a global level resulting in globalisation of the company and also allows for more efficient trade to occur as payments can be made immediately, anytime of the day and anywhere in the world. Systems such as advanced traffic and information systems already

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