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  • Writer's pictureRoderick Verhoef

Top 4 Transportation and Logistics Challenges in Europe

Updated: Aug 22, 2023



Transportation and logistics managers in Europe face a unique set of challenges, particularly when it comes to route optimization. They are wondering if escalating costs and driver shortages will continue to complicate logistics operations.

Managing transportation and logistics is becoming more challenging as a result of economic and geopolitical instability. However, transportation and logistics businesses can get ready for various circumstances with the support of technology trends. in this blog post, we will discuss a few transportation and logistics challenges that logistics businesses may experience.


1. Delivery Efficiency


Delivery efficiency requires determining which orders will have the greatest impact on your logistics business and prioritizing their completion. Focus on prioritized orders to boost revenue and reduce the impact of incomplete operations.

European Transportation and logistics firms that want to survive in today's market need to focus on improving last-mile delivery and streamlining order fulfillment. Taking your strategy for planning the most efficient delivery routes into account immediately provides benefits in the form of on-time arrivals, productive employees, and satisfied customers.


2. Fuel Costs


Increased fuel costs pose a problem for logistics organizations in Europe, as rising costs often require carriers to hike pricing or experience financial losses. When carriers boost rates, the increase is ultimately passed on to consumers in the form of higher product pricing and rising transportation costs. Here are some strategies to reduce fuel costs:

  1. Put an end to the pointless idling of your vehicle.

  2. Rein in dangerous driving behavior.

  3. Monitor and take control of fuel trends and technologies.

  4. Be sure to optimize the most direct and least bumpy routes.

3. Meeting delivery time window


A delivery time window is a time slot specified by the consumer or provided by the seller when the order is placed. Typically, this is done after an order has been placed on a brand's mobile application or online web store, before final checkout, when the consumer can enter his or her chosen delivery time or select from the available time slots. A delivery or pickup time-window refers to the time frame in which the shipment can be made or received.


Measuring on-time delivery rates in logistics sector exposes the efficiency of a delivery service in the logistics business and can increase customer retention and satisfaction. Hence, a tighter delivery time window is better for the end consumer.

4. Achievable routes forecasting


An old saying goes something like this: "The most accurate method for logistics forecasting is quantitative and trend forecasting based on analysis of fact-based information."

In terms of route prediction in transportation and logistics business, there are several similarities. Using historical and real-time data, as well as a healthy dose of intuition, it creates forecasts. And in other circumstances, something that didn't show up on the radar can cause you to become caught off guard and unprepared, whether you didn't have a plan B or didn't have enough of a certain item on hand to fulfil an order.


It is essential to your logistics business to have a good understanding of how to accurately predict the needs you will have in terms of transportation and logistics.


Conclusion


Emerging technologies are making transportation and logistics industry more efficient, productive, and cost-effective, and these improvements can be seen at every stage, from the beginning of the product development process to the "last mile" delivery possibilities that technologies like artificial intelligence, the Internet of Things (IoT), machine learning, and beyond offer.

Norma LIVE helps logistics businesses create efficient transportation plans within minutes to minimize logistics costs and maximize fleet productivity with a real-time dynamic live routing algorithm that enables you to put your entire express transport planning operation on auto-pilot. It optimizes pickup and delivery operations for the last mile and significantly empowers same-day or immediate delivery services.

Download the white paper "5 Tips to Scale Your Last-mile Delivery Operations" to find out tips that help transportation and logistics providers grow their delivery operations by including them in their business strategy.

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