7 Surprisingly Common Logistics Mistakes and How to Avoid Them

7 Surprisingly Common Logistics Mistakes and How to Avoid Them

Your company’s logistics can spell the difference between pulling ahead of the competition and falling behind. However, you can easily gain an advantage over your competitors by simply avoiding common logistics mistakes. 

A minor lapse can have a rippling effect on a company’s reputation and revenue. Take note of these 7 common logistics mistakes and how you can avoid them.

 

7 Common Logistics Mistakes and How to Avoid Them

 

1. Short-Sighted Cost Forecasting

Logistics is much more than getting a shipment from point A to point B. In many cases, a single piece of cargo can pass through several hubs, each with its own costs that are subject to fluctuation. Companies sometimes make the mistake of overlooking these price changes and ultimately spend much more than they intended.

You’ll want to keep tabs on any adjustment in operations costs. That way, you can explore other routes and logistics options to manage your expenses.

2. Stocking Too Many or Too Few Goods

Keep too much stock on hand, and you’ll overspend on both purchases and storage fees. On the other hand, you’ll lose out on sales if you make the mistake of stocking too little! Here are three ways to maintain just enough stock in your warehouses.

    • Use the Right Calculations for Purchasing Stock. Be sure to consider supplier lead time, safety stock levels, order frequency, open orders, and back orders.
    • Pay Attention to Forecasts. These serve as the basis for your purchasing calculations, whether you’re looking at moving averages or assessing trends of every product in your lineup.
    • Tap Sales and Operations Planning (S&OP) Processes for Your Business. Meet with your sales team and give everyone the chance to contribute bits of market intelligence. This can greatly improve the accuracy of your forecasts.

3. Failing to Clarify Return Policies

Many customers nowadays will be looking for your return policy from the get-go. Clarify these policies early on, and you can ease the frustration of a disappointed buyer. Sometimes this is all it takes to prevent a storm of additional claims and consequences for your company.

4. Relying on Manual Management Systems

Before the emergence of warehouse management systems (WMS), companies ran their warehouses using paper-based systems and human memory. You’ll be surprised to know that some companies are still run manually until today! 

However, manual systems are prone to mistakes and breakdowns when used with dynamic business processes. They tend to be time-consuming as well. Upgrade your company by investing in a suitable WMS, and you’ll be able to streamline storage flows and warehousing processes like a true industry professional.

5. Working with the Wrong Freight Forwarder

Some freight forwarders are more reliable than others. You’ll want to take time to find the freight forwarding company that can best handle your logistics needs while remaining within your budget. Otherwise, you may encounter unexpected problems and additional expenses!

 

ALSO READ: 6 Reasons to Use a Courier Service for Local Deliveries

 

6. Failing to Package Goods Properly

Yes, some companies, unfortunately, overlook this crucial aspect of logistics. It may not seem like much, but this mistake can directly result in damaged goods and disheartened buyers. 

Fortunately, the remedy for this is just as straightforward. Just be sure to pack your shipments properly, and you can save yourself from losing customers and racking up additional costs.

7. Falling Short on Promises

It’s easy to tell your customers what they want to hear just to keep them from taking a look at your competition. However, these promises are often made without considering stakeholders and other elements of the supply chain, making them almost impossible to fulfill.

Instead of making promises your company can’t keep, you’ll want to lay out clear and concise logistics manuals that detail all your processes. Update these as needed with optimized procedures and the latest technology. Try to make it a point to offer enough options for your customers to choose from, too.

 

ALSO READ: Everything You Need to Know to Pack Your Cargo Properly

 

Need help avoiding these common logistics mistakes? You can always consult WSI, a reliable B2B courier company in the Philippines with 25 years of experience under its belt. Our experts will gladly go the extra mile to help you come up with a competitive logistics strategy for your company. Contact us now for inquiries!

Visit our blog regularly for more informative articles on logistics in the Philippines.

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