Socio-Cultural Analysis of the Global Transport and Logistics Industry
Lifestyle habits have affected how the hiring process is conducted in the transportation and logistics industry. Young people in the industry are lacking and those that are employed lack in skills and expertise. Potential new recruits could be discouraged by the antisocial hours they have to work, for example as truck drivers. The average age of truck drivers is the early fifties and this age had been increasing over the years due to the inexperience and lifestyles of modern generations. Additionally, the transport and logistics industry is constantly evolving due to modern lifestyles such as online commerce and home delivery for modernistic clients (Sullivan & Bodimeade, 2014).
Increase in online shopping – an increased appetite for e-commerce has been welcomed by most manufacturers and retailers but comes with significant risks and complexity of transportation and logistics. This is because of the challenge of determining optimal distribution networks as shippers endeavor to balance between service and cost (Burnson, 2016). Parcel providers are staying ahead of the game due to bulk orders that call for standardization and synchronization of business processes to engage real-time access and insight to the movement of the inventory.
Average disposable income level –consumer spending and purchases have increased to imply an average increase in levels of disposable income due to urbanization. Amazon, for example, is offering home grocery deliveries and transportation. One of the reasons cited is because of the rise in per capita income, which has increased demand and consumption of goods. Additionally, busy schedules and increased disposable income makes people lazy, and consumers are willing to pay retailers to have products delivered to their doorsteps (Technavio, 2015).
Weaknesses of Mainfreight
Net profit for the company reduces due to problems in some regions. Mainfreight is a global organization operating in transnational transport and making deliveries to many different areas. As a result, problems such as political conflict and trade barriers may impact the company negatively and reduce net revenues (Pye, 2013).
Fluctuations in fuel prices affect courier prices in different regions and may also increase business expenses. Fuel prices are influenced by many different factors of which the company has no control. However, to ensure profitability, prices of deliveries must be adjusted, or else losses become inevitable.
Some transport routes become difficult to pass through due to weather extremities, physical barriers, political conflicts, or human causes such as accidents. This, in turn, causes delays for the customers and negative reputation and revenue loss for the organization (Pye, 2013).
References
Burnson, P. (2016). E-commerce reshaping logistics. Logisticsmgmt.com. Retrieved 1 September 2016, from http://www.logisticsmgmt.com/article/e_commerce_reshaping_logistics
Pye, G. (2013). Mainfreight. Prezi.com. Retrieved 1 September 2016, from https://prezi.com/xtujtiqmipey/mainfreight/
Sullivan, N. & Bodimeade, M. (2014). Sector Analysis Transport, supply chain and logistics | Business intelligence for recruitment and resourcing professionals. Recruiter.co.uk. Retrieved 1 September 2016, from http://www.recruiter.co.uk/analysis/2014/07/sector-analysis-transport-supply-chain-and-logistics/
Technavio. (2015). Better Grocery Transport Will Make Widespread Home Delivery Feasible | Technavio - Discover Market Opportunities. Technavio.com. Retrieved 1 September 2016, from http://www.technavio.com/blog/better-grocery-transport-will-make-widespread-home-delivery-feasible
