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 Most organizations still use outdated traditional platforms to communicate.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.