When it comes transport Canada, the supply chain is facing tremendous challenges. It has become important for the companies to manage their overhead expenses while staying efficient. It has also become essential for the transportation and shipping companies to manage the operational costs and ensure that they serve every industry properly. As a result, there are certain challenges that they are facing, and here we will try to provide you with the major challenges.
• The sudden changes in the weather can impact the supply chain for the transportation segment. It can affect the smooth operations. We are all too aware of the sudden changes in the weather conditions, especially during the winters, which disturbs the delivery of the products. However, there is a way to overcome this challenge if you think through it carefully.
o You will need to track the weather conditions in real-time to be able to understand the challenges you will be facing through the day. This will help you plan your supply chain and logistics accordingly, and ensure that you are able to not just plan your route, but also your deliveries in a timely fashion
o You should always have a plan B for the shipping, as well as logistic to ensure smooth supply chain operations. The Canadian vessel registry is in sync with the regulations laid out for the transport in Canada. Apart from following all the rules, you also need to ensure that you are adapting to the changes for optimal deliveries.
• You should follow the environmental regulations laid out by the country for transportation and logistics. It will help you keep up with the changes in the weather, and will also help you manage the carbon footprints and other issues that disturb your deliveries.
o Check on the emission levels of Carbon Dioxide and other gases in your supply chain. Make sure you follow the rules laid out by the government and maintain the minimum permissible limit
o You should manage your logistics in a way that they are environmentally conscious and aware. Make sure you use the best practices that can help preserve the environment.
o Transport Canada should also implement environmental regulations when they are implementing rules for their supply chain
• The third challenge facing the transportation in this country can be attributed to globalization. Every business, whether they are part of the supply chain or not, want to reach out to the global audiences. This cannot be achieved simply without making certain critical decisions. You need to begin by identifying the legal aspects that are common in the other countries, which have not been considered in Canada. Secondly, you need to start with the Canadian vehicle registry, and understand if you can use the same for your channels abroad. In case, you need to opt for a local registry, you need to understand how it works, and what you ought to do to get started.
• Finally, you need to make note of the difference in tariffs across the globe. The additional costs will add to your overheads, and you need to consider these costs carefully before branching out.
Another concern is the rising tariffs coming out of the U.S.A. The Retail Council of Canada has warned Canadians about additional costs for yogurt, pizza, paper, lawn movers, orange juice, soups, chocolate, and more. To learn more about these new tariffs, please see CTV News’ ‘List of U.S. Goods Being Hit With Canadian Counter-Tariffs’.
Geography
Geography is also an important thing to consider when it comes to globalization. For example, Canada does not experience many earthquakes, so the likelihood of transportation being disrupted by one is low. However, in countries such as Japan, precautions must be developed to ensure smooth shipments during commonly occurring earthquakes.
International Currencies & Treaties
As a logistics provider, it is also critical to understand the conversions between different international currencies, as well as to be aware of securities and border treaties - as each of these factors can impact shipping.
4. Unpredictable Fuel Price Hikes
In Canada, fuel costs rise and fall for a number of reasons. For example, the Trans Mountain Pipeline dispute, although entirely unrelated to logistics, has recently caused a huge spike in fuel prices in British Columbia.
The following chart shows just how much fuel prices fluctuated in Vancouver in 2017:
Source: Kent Group Ltd.
How does fuel impact logistics? When the price of fuel increases, companies that run on “gas-guzzling” transportation are forced to allocate more of their budget to powering supply chain vehicles. When other sections of a company suffer because of budget reallocations, businesses can face a variety of problems - including wage cuts or de-funding of other programs.
Increases in fuel prices also pressure companies to begin charging more for their products and services - damaging and even ending relationships with customers who are unwilling or unable to pay more. When goods aren’t being bought and shipped, the entire economy suffers - another reason that companies might benefit from “going green”.
At McKenna, expert logistics managers investigate fuel prices to ensure their routes are not only as environmentally friendly as possible, but as efficient as possible – reducing overhead costs and emissions. Also, McKenna actively prepares for fluctuating fuel prices - to protect their customers from facing huge spikes in charges, and to protect their employees from being laid off (when fuel costs are high).
5. Big Data
In a tech-driven world, data and analytics play a huge role in making supply chain operations more efficient. Real-time analytics have revolutionized the logistics industry as customers pushed (and continue to push) for more involvement in tracking their purchases.
However, while data tracking has its benefits, it has also made supply chain systems more complex. For example, shippers and receivers must now constantly track and enter data, updating the exact location of freights. Also, training employees to do this, and purchasing new equipment and systems with these capabilities, can be costly.
At McKenna, crews leverage innovative technology to not only track, organize, and store data, but to also protect the privacy of buyers and sellers. While this technology can be costly, the satisfaction of clients and customers should always come first.
6. Finding the Right Talent
It can be very difficult to find supply chain managers with the competency to keep things running smoothly at all times. Companies need supply chain managers with a good understanding of their business and well as the different processes that govern their supply chains.
Companies also have to maintain good relationships with suppliers and partners as more and more companies are turning to private labelling (purchasing goods from other companies and rebranding them for sale). Without these interpersonal skills, and the ability to adapt to the processes of other companies, supply chain managers are bound to fail.
To attract and retain high-quality talent, McKenna works hard to support a family-oriented, skill-developing environment that the McKenna team truly enjoys working in. In fact, it is engrained in our values to treat employees with respect for their craft as well as to provide individuals with the benefits and support they deserve.