For Kim Woods

Organizations in-charge of shipment and ferrying of goods have increasingly become concerned due to the widespread changes in the economy, the installations of new regulations, and the current initiatives on highway funding. It is of importance to note that some changes progress faster than others. Soon, this is expected to take place in the trucking industry. The shortage of drivers, which has become a universal norm, will ensure that the trucking companies are bewildered so as to be able to attract and ensure that their professionals remain (Trends to Track in 2016 - Article - TruckingInfo.com. 2016). The economic state has taken a back seat, but the direction it has taken is a huge blow for all of the stakeholders in the trucking sector. The following are some of the forces and trends that are expected to reshape the transportation industry in the future.

The United States' economy is one of the fastest growing economies in the world today with about 2.5% annual growth rate. The pace is expected to escalate in the next coming years. The major influencers of the economy are the solid momentum in the domestic market as opposed to a cautious approach to investment in the global environment, which is very emaciated. However, businesses in the country have shown to be conservative on the current elective environment. They continue in spite of lacking a strong dollar and are waiting for growth in the economy that has led to the opportunities of exportation being slim (Regulation & Legislation: Truckers Get the Message - Inbound Logistics. (2016).

Further, weakness is showing by reduced investment levels and productivity; the American economy is expected to resume normality, resulting in labor shortages which might pressurize wages and hence eat into the profits earned by the corporate firms. To curb this, Swift Transportation Company has the objective of remaining active and hence, extending the above average growth for a longer period. The plan by the organization will be of great help because the economic components are continuing at levels that are not sustainable. The current economic variables make the group predict the economic growth rate to be at a staggering 2.8% for this fiscal year (Trends to Track in 2016 - Article - TruckingInfo.com. 2016).

More concerns threaten the annual economic gains for the organization in the financial year. The risks are associated with the slowing down in the domestic economies overseas. The economies continued slowing is considered a threat because it can constrain the projected growth rate at a mere 1%. When this happens, then, there are very high possibilities that those financial markets at the global level will be hugely affected and this will translate to the country's economy hence slowing it down.

One of the greatest hopes that the organization clings to is the rampant growth rate that the trucking industry has witnessed sine the 90’s, the rate is even higher than the rate that GDP has over the same timeframe.

The organization plans to use 3PLs, makes use of the transportation management system (TMS) to help with supporting the procedures in the supply chain and the choices concerning transportation. TMS software will help by providing visibility into the organization's supply chain performance through the use of data and the collected reports. The TMS software will help with information that is collectible and that can be in turn analyzed to help with identifying the problems and the solutions that are in the industry's supply chain. However, this will be significantly challenging due to the use of the connected vehicle that has forced some truck operators to dig deep to ensure some elements of positive change. The majority of fleets have had the consideration of leveraging the authority and extent of the various technological solutions to ensure that the operations are efficiently manageable. Swift Transportation Company getting access to an enhanced number of technological advancements implies that the managers of its fleet can access a lot of data to help them with making decisions. The organization also plans on collecting information on driver behavior, and vehicle maintenance request. This information may assist with ensuring an increment in the efficiency, reduction in the costs of fuels, improve the level of offering services and guarantee an improvement in the level of services the company is providing to the customers (Regulation & Legislation: Truckers Get the Message - Inbound Logistics. (016).

One of the plans that the organization has is the use of system integration. This medium will range from the management systems, the GPS tracking, and the accounting software for the organization. These will be helpful in ensuring knowledge of the assets' location and can be used to update an estimated time of delivery. The team also developed an Uber-like application that consumers can download to their smartphones. Through the App, consumers will be able to place their shipment orders and choose the most appropriate truckers for them. Further, the organization will make use of technology to help with automated mechanicals and the adoption of fully-automatic transmissions to help with saving fuel and suit drivers (Trends to Track in 2016 - Article - TruckingInfo.com. 2016).

The next trend is the road works. The United States' Congress has passed one of the major multi-annual highway bills since 2009. Trucking is known to be responsible for carrying a staggering 67% of the freight tonnage transported in the United States Since 2011. However, the initiatives started by the Federal Motor Carrier Safety Administrative (FMCSA) relating to the CSA (Compliance, Safety, Accountability is a huge challenge), is a huge problem for the company (Regulation & Legislation: Truckers Get the Message - Inbound Logistics. 2016). When adding this with the federal requirements of the newly passed Hours-of-Service (HOS) regulations for the sake of the drivers, the issue becomes a nightmare.

Finding and retaining an excellent driver has become a nightmare for the transportation industry in the recent past. The organization is very much aware of the role they play in ensuring a successful financial year; in fact, the impacts of pay for the drivers have cost the trucking industry a staggering figure of between USD 1.6 billion and USD 3.9 billion on an annual basis. However, through enhanced allowances and drivers' training, the company anticipates motivating its drivers and foster good Return on Investments (ROE). Another factor that the institution upholds is prioritization of the safety around its premises. Adequate measures have been taken to ensure that the equipment used are safe and that the company is only hiring safe drivers from their respective positions. By adhering to the CSA and the requirements of the electronic stability control (ESC), the organizations on the verge of making Swift Transportation company, the safest in the whole of the United States.

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References

Regulation & Legislation: Truckers Get the Message - Inbound Logistics. (2016). Inboundlogistics.com. Retrieved 10 November 2016, from http://www.inboundlogistics.com/cms/article/regulation-and-legislation-truckers-get-the-message/

Trends to Track in 2016 - Article - TruckingInfo.com. (2016). Truckinginfo.com. Retrieved 10 November 2016, from http://www.truckinginfo.com/article/story/2015/12/6-trends-to-track-in-2016.aspx