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July 24, 2023 | Insights

Rethinking Transportation Services: Overcoming the Challenges of Treating Them as Commodities

July 24, 2023 | Insights

Thinking of transportation services as a commodity can lead to a misunderstanding of the complexities and nuances involved in providing and utilizing transportation.

Viewing transportation as a commodity oversimplifies the diverse range of transportation options available and fails to recognize the variations in service quality, customization, and specialization. It overlooks the fact that transportation services can differ significantly based on factors such as mode of transport, service level, reliability, and capacity. Different industries, businesses, and individuals have unique transportation needs. Treating transportation as a commodity may ignore these specific requirements and result in a mismatch between the service provided and the customer’s needs. Dedicated transportation services, which are tailored to address specific demands, can often provide a better fit for customers with specialized requirements.

Dedicated transportation services often offer value-added services beyond basic transportation. These can include features like real time data tracking, customized reporting, dedicated customer support, specialized equipment, or enhanced security measures. By considering transportation as a commodity, one may overlook these additional benefits and fail to recognize the added value they provide. Dedicated transportation often involves building long-term relationships and partnerships between service providers and customers. These relationships are based on trust, reliability, and collaboration. Treating transportation as a commodity undermines the importance of these partnerships and the benefits they bring, such as improved communication, operational efficiency, and better overall service.

Commoditized thinking can lead to a narrow focus on minimizing costs without considering the broader economic impact or the total cost of ownership. Dedicated transportation services may have higher upfront costs, but they can offer long-term cost savings through improved efficiency, reduced risk, and customized solutions that align with a customer’s specific needs. When transportation is seen as a commodity, there may be less incentive for service providers to invest in innovation and improvements. It can stifle creativity and limit the development of new transportation solutions that better address evolving customer needs and emerging trends.

It’s important to recognize that while some aspects of transportation can be commoditized, there are many cases where dedicated transportation offers unique advantages and value that can’t be easily replicated or replaced by commoditized options.

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