Logistics: 5 Of The Biggest Challenges
This article offers the reader information about the main challenges regarding logistics, while also offering suggestions on how to overcome these challenges.
Logistics is the movement and handling of goods and for many businesses, logistics can be challenging at the best of times. As the business grows, so does the scope of the logistics operation and with that in mind, here are some of the main challenges that logistics can bring.
Prompt Order Fulfilment
This is the goal for every supplier and many companies choose third-party providers, which is a cost-effective way to ensure prompt and professional delivery. When you crunch the numbers, using 3PL companies is the cheapest way to get products to your customers, which is why it is such a popular service. The provider can tailor their services to suit the client and with no lengthy contract to bind you, you can stop the service at any time. The provider works around the clock and they would have an express delivery service, a same-day service, as well as air and sea transportation.
Planning
Of course, it depends on the size of your operation. Managing a fleet of trucks and vans would require serious route planning in order to keep costs down. There is special software that can do this for you and it can even incorporate vehicle maintenance and repair. Driver schedules also have to be made and there needs to be at least one substitute driver, in case of sickness or absenteeism. If there are no stand-by drivers, the transport manager has to hope that everyone puts in their shift, otherwise, delays will result.
Vehicle Availability
If the transport manager desperately needs a vehicle, the taxi truck Sydney or your city provides has the solution and they can guarantee same day delivery. Many transport companies work closely with a 24/7 delivery company to cover when they have vehicle issues, which can be frequent if the trucks are old and breakdown often. The cost of running a fleet of vehicles is high, but outsourcing to a 3PL company reduces the costs and frees up valuable resources.
Traffic
Perhaps the one variable you have no control over is traffic. What can you do when there’s a long line of vehicles and no one is moving? Of course, most vehicles are fitted with GPS and can navigate their way around traffic congestion, while some systems use computers to calculate alternative routes, which is often a life-saver.
Import/Export
If you are sending goods abroad, all the paperwork needs to be correct, while importing also demands a lot of red tape. Using an import/export agent is the hassle-free way of dealing with this aspect of the operation, which is why almost all businesses use agents.
The third-party logistics industry is booming and as online shopping gains popularity, more such businesses are emerging to service a growing industry. If you would like to learn more about 3PL logistics, a Google search will put you in touch with a local provider who has all the solutions.
