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Maneuver Around These Logistics Roadblocks Featured

Modern logistics is not only complicated but challenging as well. As such, shippers must be prepared at all times to identify the roadblocks that hamper their productivity and solve them in time.  With regard to outbound logistics management, logistics firms must navigate through hurdles raging from end-user demands to change in operational costs.

Below are some logistics roadblocks that affect smooth and effective logistics programs that must be avoided if delivery of service is to succeed:

  • Failure to understand policies

Policies are always necessary for the effective running of operations in any organization. However, failure to understand your own policies and procedures concerning inbound freight and how needs can be solved can become a challenge. Most companies have inbound shipping policies that help reduce issues associated with safety, job accidents, and inventory controls. The biggest roadblock here is vendors who do not understand the policies and procedures. This can be solved by having access to strict, high-quality instructions on how shipments should be handled. Such can be handled by an effective logistics guide that details how specific scenarios can be approached.

  • Lack of effective TMS solutions

According to Peerless Research Group, almost half of supply chain companies have no plans to use or even pursue transport management systems (TMS). This means that these companies have challenges when it comes to the management of inbound and outbound cargo. On the other hand, while approximately 54% of logistics firms run metrics regarding inbound cargo, these metrics may be lacking. While there are many systems that can manage inbound logistics, some stakeholders see no value in them or lack proper metrics and TMS.

  • Overdependence on metrics

Although metrics are critical in developing a strong inbound logistics management, the truth is that they should not be seen as a solution to everything. A major problem that several shipping companies face is that once they have these platforms, they depend too much on them in determining the effectiveness of their logistics programs. It is important to seek education from other sources such as your employees and vendors when trying to develop policies and procedures that impact the safety and effectiveness of your operations.

  • Communication breakdown

Any successful logistics program or even company must have open and transparent communication throughout the supply chain. Sadly, communication breakdown is real, and some of the logistics firms often lack proper and clear communication in their internal environment- where departments fail to communicate with clarity. Most organizations still use outdated traditional platforms to communicate. These communication gaps causes missed deliveries, issues with inventory control, accounting problems, and lost businesses.

  • Lack of collaboration between departments

Collaboration between departments is crucial in the management of outbound products. However, there is often a disconnect between departments, which leads to a loss of cost-saving opportunities. This leads to the rise in inventory levels or failure to meet the customer's demands and loss of profits. Shippers can maneuver this by removing the silos, which causes inefficiency. Doing so enables a better flow of procurement products and orders.

A final word

As a logistics firm, ensure that customer service is key. Any strategy that fails to solve customer problems would crumble. Saying “the customer comes first” does not solve anything. Instead, logistics companies must identify the needs of every customer and roadblocks that can affect service delivery. Since every customer has different needs, logistics companies cannot use a blanket solution to meet the demands of all the customers. Take advantage of TMS and ensure there are no silos that may hamper communication and decision making in the organization.

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Scott Koegler

Scott Koegler is Executive Editor for PMG360. He is a technology writer and editor with 20+ years experience delivering high value content to readers and publishers. 

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