It is essential for all of us – the transport industry. Without freight forwarders, transport companies and also the truck drivers, shopping and consumption as we know it today would not be possible. But unfortunately, the industry has lost its appeal and hardly anyone wants to enter the logistics sector anymore. Find out why this is the case and what employers can do to counteract the shortage of skilled workers in logistics in this blog post.
Increasing traffic volumes, long waiting times and numerous nights without the family at home – for the truck driver, this is part of everyday life. The German Freight Forwarding and Logistics Association (DSLV) estimates that the industry is already short of around 60,000 to 80,000 truckers. And the trend is upward. The reason for this is that the baby boomers are gradually retiring and there are hardly any new recruits.
Germany is a trading country. It depends on imports and exports as well as the provision of goods. A large part of the goods produced by domestic companies is sold all over the world. Disrupted supply chains affect not only supermarkets, but also crafts and industry.
What many people don’t know: With more than three million employees, logistics is the third-largest industry in Germany. At the same time, skilled workers of all qualifications are being sought in vain. This does not only mean truck drivers, but also, for example, engineers who coordinate and monitor important flows of goods. This is a problem that has not only existed since the recent crises. Statistics predict that one in eight skilled workers in the logistics industry will have to be dispensed with by 2040.
Truck drivers officially included in shortage occupations since March 2020
On March 1, 2020, the truck driving profession was officially added to the list of shortage occupations by the Labor Department. At the same time, a large proportion of vacancies are not even reported to the employment agency. Due to the difficult situation, most companies resort to qualified specialists from non-EU countries. The reason for this is the elimination of the priority review. This has required employers to prove that there is no longer a domestic workforce available for the vacant position.
Digitization becomes a survival factor
The requirements have changed. The growing awareness of Green Logistics in connection with increased energy prices provides a profound change, analyze the logistics modes. Complicating matters further is the competitive pressure from new and digital carriers, as well as the increase in shipment volumes since the pandemic began. This exceeds the capacity limits of manual dispatching for many freight forwarders. The just-in-time principle introduced years ago has additionally changed the industry. Inventories must be kept to a minimum and trucks are used as rolling stock. Truck drivers have to deliver materials and components from suppliers in the appropriate quantity on schedule: ideally at the time the factory processes them. In this context, digitization becomes nothing more than business optimization. It is becoming an essential factor for survival – according to logistics.
What can digital logistics look like?
By automating processes and workflows, human errors are avoided and resources are used more efficiently and, above all, more carefully. Fewer empty runs and CO2 emissions while saving time and money. The order management system JITfleet offers a clever way to get started.
With JITfleet from JITpay™, orders can be quickly and easily managed and processed digitally, from order receipt to payment. This gives the contractor full transparency over all orders as well as permanent track and trace information. At the same time, JITpay™ guarantees immediate payment within 24 to 48 hours after submission of the POD (Proof of Delivery). Digitization has never been so easy!
And this is how it works:
JITfleet™ generates a delivery document, on the basis of which JITinvoice generates the invoice. You can add additional services (e.g. separate standing times). Afterwards, the invoice along with the order and delivery note can be sent to the client with a “click”. Once the invoice is sent, the contractor receives the money in his account within 24 to 48 hours. JITpay™ takes care of receiving the money from the client, sending reminders for the invoice and JITpay™ also takes the risk in case the client does not pay.
JITpay™, a financial service and billing provider specializing in the logistics industry, was founded in 2016. The core product is a proprietary, fully digital, BAFIN-regulated Factoring Company. In an ecosystem, JITpay™ together with partners offers complementary services and combines them with the core product Factoring. In August 2022, JITpay™ had around 100 employees, and more than 1500 customers rely on JITpay™’s services across Europe. Target customers are small and medium-sized transport companies in Europe. The company, which also has locations in Basel/Zurich (Switzerland), Wroclaw (Poland) and Bucharest (Romania), acts as a trusted partner for logistics companies: In doing so, it takes over and digitizes the complete service invoicing between the client and the contractor and combines this with a specially developed financial product that enables the immediate payment of the contractors as well as flexible payment terms for the clients.
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Would you also like to improve your liquidity and optimize process costs? Then register now for free with JITpay™
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