Share this article
Follow us on Linkedin
In today’s fast-paced and customer-driven market, businesses that fail to adopt visibility-enhancing technologies risk being left behind. According to recent data, the global logistics market, valued at $4.09 billion in 2022, is set to grow to $12.09 billion by 2030 at a CAGR (Compound Annual Growth Rate of 17.1%. Carrier visibility is not optional—it is a critical business imperative. The ability to track carriers and shipments in real time can make or break the competitiveness, efficiency, and customer satisfaction.
The process of delivering products from the shipper to the consumer is riddled with challenges. From operational complexities to fluctuating market conditions, businesses must address these hurdles to thrive. Let’s explore the most pressing obstacles in transportation management and how advanced solutions can transform your logistics operations.
Key challenges in Transportation Management
1. Last-mile delivery and cost challenges
Navigating traffic congestion and managing individual deliveries in both urban and remote areas drive up costs by 20-30%, cutting into profits. Inefficiencies in this critical stage also led to delays that frustrate customers and strain resources.
2. Real-time visibility and rising customer expectations
Without end-to-end tracking and seamless integration across transportation modes, businesses risk losing 50-70% of customer trust. Today’s customers demand real-time updates and lightning-fast delivery.
3. Driver shortages and supply chain disruptions
A global driver shortage, coupled with unpredictable disruptions like natural disasters and port congestion, increases labor costs and delays shipments by 15-25%. Businesses need robust systems to minimize these risks.
4. Regulatory compliance and outdated technology
Complex regulations and outdated systems pose significant challenges. Failing to comply with international laws can lead to fines of 10-15% and missed opportunities for optimization.
5. Reverse logistics and inventory mismanagement
Ineffective return handling and poor inventory tracking lead to overstocking, stockouts, and increased costs. These inefficiencies risk 30-50% of lost sales or unnecessary carrying expenses, putting businesses in a precarious position.
Your Solution: Boost carrier visibility with SAP Transportation Management, Business Network for Logistics, and Global Track & Trace
Modern logistics needs smart solutions. SAP’s tools—BN4L, GTT, and TM—help improve visibility, efficiency, and customer satisfaction.
SAP’s cloud-based BN4L makes collaboration easier.
SAP’s BN4L (Business Network for Logistics) enhances logistics collaboration by connecting shippers, carriers, and partners on one platform. It offers real-time updates, smooth SAP TM integration, and instant shipment visibility through APIs and EDI, improving trust and efficiency.
BN4L Freight Collaboration process overview:
BN4L FC supported communication channels per mode:
Global Track and Trace (GTT)
SAP GTT (Global Track and Trace) provides full shipment tracking with live GPS updates, predictive ETAs, and analytics. It monitors delays, sends alerts, and integrates with SAP TM for real-time plan updates, ensuring smarter and more efficient logistics.
Affordable Driver Apps
When GPS or telematics are not practical, driver apps offer a cost-effective solution. The Westernacher fleet app improves visibility and management.
Driver App Features
- Real-Time GPS: Tracks routes and locations.
- Driver Monitoring: Tracks performance and behavior.
- Task Management: Assigns and tracks driver tasks.
- Issue Reporting: Lets drivers report problems easily.
- Fleet Analytics: Provides data to optimize operations.
The app ensures efficient, safe, and compliant logistics.
Take the Next Step
With tools like real-time tracking and route optimization, businesses can ensure customer satisfaction, maintain a strong carrier business relationship, and combat the increasingly complicated business challenges of today. Read more about this topic White paper_Supercharging your private fleet with SAP TM.pdf to see how Westernacher can help revolutionize your business with SAP.
