5 Most Common Logistics Challenges
The world of logistics has recently gone through a very rough patch. Or rather, is still going through one. The pandemic has hit everyone hard. But no aspect of business has been crippled quite as heavily as the supply chain. The costs have skyrocketed. The availability of means to transport goods has dwindled. And this, in turn, has made navigating logistics with any degree of success a challenging task indeed. Still, life moves on. And logistics experts find ever more new and impressive ways to tackle their problems. However, what are the most frequent issues they deal with? What does every individual working in logistics eventually have to face? Well, join us for our five most common logistics challenges and find out!
Logistics are, and always will be, aimed at achieving goals with maximum efficiency. And this efficiency, of course, includes the matter of price. In fact, there has never been a point in the history of logistics challenges when prices were not an issue. Considering everything that has been happening with the pandemic, that is ever truer now. Supply chains have been disrupted, and demand is surging sky high for certain products, with no reliable supply insight. All the while, shipping disruptions make already steep costs practically untenable and drive the prices higher. So, understanding truckload pricing and strategies is becoming more and more critical for proper planning. At least where they can be used. Here, we can actually see how stable logistics prices reflect on stable consumer prices. Interestingly, though logistics pursue the reduction of cost for personal benefit, it also ends up helping the general public.
PREVENTING WAREHOUSE MANAGEMENT ERRORS
This one is perhaps one of the most important yet most understated out of the most common logistics challenges. Having a well-planned and functioning warehouse management system is key to getting your goods where they need to go and keeping them safe and in good condition while they are in storage. After all, all it takes is a single error where temperature-sensitive items are sent into a warehouse that does not have temperature control. And you can expect a whole batch of goods to be completely ruined! This does not account for errors with order numbers or storage tracking that can cripple a supply line. If you order far too much of something by accident, you will face a shortage of storage space and oversaturation of the market. Which, in turn, would lead to loss of profit and resources.
ENSURING EMPLOYEE RETENTION
There is a reason for the old adage 'good employees are hard to find.' First of all, you cannot expect people to know how to do their jobs well from the get-go if they do not have much experience. So, realistically speaking, if you are looking to hire, you will also have to train your personnel. Even the moving experts from 247charlottemovers.com warn that this is a lengthy and expensive process! So, if you put in all the effort required, you want to keep those employees. Unfortunately, logistics see a lot of employee turnover, particularly when it comes to warehouse workers. And yet, having experienced and skilled warehouse workers is a requirement for keeping your warehouses in good working order. The importance of which we have already discussed! So, it's in the best interest of logistics to encourage their employees on every level to stay on.
SECURING RELIABLE SHIPPING
There is nothing quite as important for logistics as a stable supply chain. And you have absolutely no hope of having one unless you have worked out all the details of actually transporting your goods. A task that has become frustratingly hard with the effects of the pandemic still striking hard at the transportation industry. Harbors were shut down. Flights canceled. And the place of shipping troubles has been catapulted to the very top of the list of most common logistics challenges throughout the world. This is without even taking into account the growing expectation for reducing carbon footprint in logistics. Of course, a common approach to solving this problem is securing your trucks, boats, or even planes. But then you face the problem of driver shortages, which ties into the previous entry on our list.
KEEPING UP WITH TECH ADVANCEMENT
Like nearly every field nowadays, logistics has to tackle the challenge of staying on top of technological advancement. Perhaps, in specific ways, it is even more critical for those heavily involved in logistics to do so. Self-driving trucks, drones, and a whole host of other technological marvels are enough to significantly shape up the world of logistics. And that is not even considering logistics software! It means that any competitor who cannot quickly obtain the newest toys will soon fall out of favor. And, in turn, out of business. It leads to heavy investments in patent development and tech acquisition. An investment that can be hard to balance with the need to reduce costs and keep up with the mounting expenses that the pandemic has dropped on the lap of every last individual working on the issue of logistics.
THE BOTTOM LINE
With our list of the five most common logistics challenges coming to an end, we hope you have a slightly better idea of what kind of problems logistics experts need to tackle. And just how much harder the pandemic has made their jobs! One thing is sure: it is unlikely for any of the most common logistics challenges to be reduced to something 'easy to handle' until the pandemic is just an unpleasant memory. This is not to say that tackling any of these problems is exactly easy, even when everything is working according to plan. Looking from the outside in, it might seem like solutions should be obvious. But trying to implement any of them immediately causes a whole host of smaller problems to pop up. In a way, logistics are like an endless game of whack-a-mole.