While the pandemic has exposed the vulnerabilities of logistics management, the worsening global economy and conflict between countries are added factors that will cause further complications. If you are a company that requires logistics and supply chain support, you’d want to know the issues that you might have to deal with to find solutions and promptly address these challenges.
5 Logistics Management Challenges You Need to Overcome
1. Lead Time
A quick turnaround time is essential for businesses and even ordinary consumers. However, uncertainties happen which cause delays. Depending on the shipment and its complexity, lead time could take longer than usual. There are also factors that may become the reason why shipments are delayed. Examples for these include:
- Weather conditions
- Traffic
- High-volume shipments
- Incomplete documents
- Inefficiencies
Effective forecasting and planning are essential to help improve lead time. In cases when land and sea freight would be slow, it matters to have a backup plan in place to still meet the expectations of the consumers. Warehousing solutions are also available to address unexpected logistics and supply chain issues.
2. Congestion
Record levels of port congestion have been experienced during the pandemic. As the world transitions to the new normal, congestion remains a major challenge for logistics. There is a chance that significant delays in sea freight will still occur especially when congested docks will be used. While there are business owners who can afford to charter their own ships, ordinary retailers don’t have the resources to do the same.
What retailers can resort to in order to keep their freights moving is to choose the right courier company that has experience in demand forecasting. Shipment containers may also be distributed across different vessels to mitigate risks that may arise during shipping.
3. Fleet Failure
The fleet vehicles used in logistics management can also pose challenges. Outdated vehicles are less reliable and may cause problems. It is essential to ensure those fleet vehicles are properly maintained and even replaced to ensure smooth operations within the supply chain. However, due to the expensive costs of heavy-duty vehicles like trucks and trailers, most businesses have to operate using old vehicles even when they’re already past the ideal average age.
Regular inspection and maintenance of vehicles can help prevent vehicle failures from happening all of a sudden. With proper care, downtime can be minimized and the lifespan of old vehicles can be extended.
4. Aging Infrastructure
Another factor that can cause logistics management issues is aging infrastructure. In the Philippines, infrastructure maintenance is a continuous challenge. As the country is an archipelago, the development of roads, rails, bridges, and ports is essential for the transport of goods and services. But as developments progress, obstructions also get in the way. Logistics companies may encounter road works, bridge closures, traffic, and other circumstances that can make the delivery of goods more difficult than usual.
It is possible to avoid problems brought by aging infrastructure by looking for a logistics company that uses essential routes as options to avoid delays. Warehousing services also work as they allow diversification and improve the flexibility of the supply chain.
5. Increasing Freight Costs
With factors like a grappling economy, the conflict between oil-producing countries, and the shift to a post-pandemic world, the cost of commodities is bound to go up. Along with that is the surge in fuel prices that will contribute to higher shipping costs.
There are factors affecting freight costs that are not within the control of a company. However, through proper management of utilities and optimization of processes, increases can be kept to the minimum, and problems like shipping delays can still be averted.
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There are changes in the logistics industry that will affect businesses. More than ever, businesses should be more resilient now and must be capable to adapt to possible disruptions. Aside from the strategies that will help you adapt to the changes in the logistics industry, you will be safer with a trusted and reliable courier company. Emerging supply chain and logistics management issues would be easier to overcome with the help of an experienced and knowledgeable team who can partner with you in achieving your business goals.
Want to streamline your logistics management processes? Send Worklink a message today so we can help you with your supply chain needs.