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But the ongoing challenges and changes have thrown some of the risk navigation off course , creating a gap that needs to be filled . According to reports , transportation and logistics businesses are currently concerned with six key supply chain risks and drivers . These include sustainability , technology , labor , changes in business models and regulation , decarbonization and ESG . Global trade , geopolitics and geoeconomic risk were other key issues highlighted for the sector .
All these challenges tie into one another . Achieving sustainability , for instance , will require the sector to readily adopt new technologies , or an electric fleet , and thus be aware of new regulations . Adopting technology will also mean the logistics industry will continue to see increased use of robotics , automation , customer-corporate integration , and digital transformation across the entire value chain , impacting consumer preferences , products , services , and corporate structures . In turn , this will mean companies in the industry will need to change their business model to be more focused on a digital-first approach to build better collaboration .
To navigate these challenges , the industry needs to ensure its staff can embrace the changes coming their way . Companies need to make sure they are upskilling staff to avoid creating a big gap between what the sector is demanding and what it can offer .
Being prepared to tackle the challenges
Labor risks significantly influence the transportation and logistics industry . The availability of workers , wage pressures and regulatory compliance issues can all impact operational efficiency and increase costs . The industry relies heavily on a diverse workforce , including drivers , warehouse personnel and logistics professionals . Challenges such as driver shortages , high turnover rates and a lack of skilled workers can cause disruptions in the supply chain , resulting in delays and service level impacts .
Yet extensive skills shortages already exist . Earlier last month , Descartes Systems Group ( DSG ) released a study that revealed 76 percent of supply chain and logistics leaders across Europe , Canada , and the US
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