Optimizing delivery logistics during economic downturns

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From the COVID-19 pandemic to the blockage of the Suez Canal and Russia's invasion of Ukraine, the global supply chain has been under severe strain over the past two years. Now, with a recession on the horizon, it looks like a blow is on the way.

However, during the pandemic, the trucking industry has exploded. Consumer spending soared as people stayed at home. The pandemic has seen a huge increase in e-commerce startups and spending, with established online-only stores like Shopify jumping 347%. Not only have large online retailers like Amazon benefited from the digital shopping boom, but many small businesses have benefited, leading them to improve their shipping options. Small businesses have relied on truckers in the spot market – single shipment agreements without market value contracts – which has led to 195,000 new truckers entering the market from July 2020 to present today.

However, with the return to their old shopping habits and the decline in online consumer spending, the market is now saturated with drivers for an insufficient amount of freight. This is driving down spot prices and forcing many smaller freight companies to close - a phenomenon called the "Great Purge".

Even with a looming recession, businesses need not panic. Instead, by revolutionizing their logistics using machine learning (ML) technology, they can choose to optimize rather than reduce and improve their customer satisfaction. With the help of artificial intelligence (AI), businesses can weather the storm and come out on top.

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During an economic downturn, the general public's automatic reaction is to cut back on spending. People can cut out those expensive takeaways, cancel their subscription services, and even miss out on a well-deserved vacation. While cutting back is often the best idea for many consumers, it's not always the wisest decision for businesses. Avoiding the knee-jerk reaction to major budget cuts is essential for your business.

Recessions are a natural part of life, and the ability to weather them separates the wheat from the chaff. By focusing your attention on optimization, you not only future-proof your business, but you provide a better experience for your customer. Focus on customer retention and...