Which are the Main Logistics Challenges Affecting the Canadian Supply Chains?
Canadian supply chain companies face myriad challenges. While overseeing the import and the transportation of goods has never been more demanding, being efficient while at the same time reducing operational costs is every logistics manager’s goal. Meeting this goal, however, relies heavily on overcoming the following key logistics-related challenges.
Unexpected weather
Bad weather is, without a doubt, the biggest threat to the Canadian supply chains. It hinders smooth operations. This is more so when you consider the adverse Canadian winters that often bring inconsistent conditions. Spontaneous snowstorms interfere with the speedy and safe delivery of products. With this in mind, understanding how severe storms impact production is critically important for businesses that wish to maintain productivity during extreme weather. Here are a couple of tips you should consider.
- Weather Tracking
Experienced trucking company understands the importance of staying up-to-date with the weather forecasts. This is more so when it comes to the regions that cover their routes. By using a logistics company that anticipates weather challenges, a business can ensure its products are delivered on time irrespective of the weather.
- Contingency plans
To better serve clients, logistics companies must have back-up plans. These will come in handy if there is troubling weather or emergencies. Needless to say, adaptability is the key to upholding optimal delivery times and services.
Environmental Regulations
According to the Environment and Climate Change Canada, Canada has a stringent goal of reducing greenhouse gas emissions. One of the methods being used to achieve this is incentivizing big businesses to adapt and reduce their overall carbon footprints. According to the Canadian Manufacturers & Exporters report, approximately 50% of carbon dioxide emissions take place in the supply chain.
With international climate committees stepping in, the biggest pressure is on the big businesses to be more environmentally conscious. Reducing greenhouse gas emissions is thus one of the key challenges facing logistics companies.
Globalization
Global business trading has grown at a rate of 2.1% to 4% per year. This is according to the World Trade Organization. Needless to say, it is not easy going global.
- Importing and Exporting Across the Borders
There is a higher possibility for error when you have less visibility over the supply. As a result, businesses planning on going overseas need to cover all their bases when moving to the national or international market. It is also good to bear in mind that what is considered common practice and legal in Canada may be illegal elsewhere.
Canada has a strict rule in regards to importing energy-related goods, cultural items, and dangerous goods. Another concern is the increasing tariffs coming out of the U.S. The Retail Council of Canada warned Canadians about the increased costs for pizza, yogurt, lawnmowers, soups, paper, chocolate, orange juice, and more.
- Geography
Canada doesn’t experience as many earthquakes. As a result, the chances of transportation being interrupted by an earthquake are low. In countries like Japan, however, precautions have to be developed to make sure goods are shipped smoothly during earthquakes.
- International Currencies and Treaties
Still on globalization, you have to understand the conversions between currencies and be familiar with the border treaties and securities. These are all factors that can significantly impact shipping.
Unpredictable Fuel Price Hikes
Fuel prices rise and fall for all manner of reasons in Canada. For example, the Trans Mountain Pipeline dispute led to high fuel prices in British Columbia. When the cost of fuel goes up, companies that run on ‘gas-guzzling’ transportation are forced to allocate a bigger budget to fuelling their vehicles. Since this will require budget reallocations, businesses can face various issues, which may include wage cuts. A spike in fuel prices also forces companies to charge more for their products.
Big Data
Real-time analytics continue to revolutionize the logistics industry. While data tracking has its pros, it has made the supply chain systems more complicated. A good example is the fact that shippers have to constantly track and enter data to update the exact location of freight. The learning curve is also steeper for employees.
Finding the Right Talent
Companies have to hire supply chain managers that have a good understanding of their business and the processes that govern the supply chains. Companies must also maintain good relationships with partners and suppliers, as well as other companies. Without the right interpersonal skills and ability, supply chain managers are bound to fail.
Outsourcing logistics is the best way to deal with supply chain problems in Canada. If you have determined now is the time to outsource, we are here for you. At Cargo County, we offer flexible pricing and accommodations regardless of your needs. Get in touch with us now to find out more.
Cargo County leading Canadian Trucking Company providing Truck Transportation, Refrigerated and Temperature controlled.