Problems Faced by Logistics Firms
And Clients In the Year 2016
It has almost been time for the year 2016 to become a part of the past; the time when 2016 will officially only exist in the books. In this blog post, we will review some of the biggest problems faced by various logistics firms and their clients in the year 2016 and what should be done to overcome them.
The chart above shows the severity of different problems as faced by different logistics firms and their clients. Logistics firms, if were not able to reduce the effects of these problems, clients suffered losses.
High Transportation Costs
As you can see, the most severe problem is “cutting transportation costs”. Logistics service is not very cheap and what contributes most to the cost is the increased transportation costs. The problem becomes even severe when logistics firms want fat profits out of their clients and even more severe if the logistics firm in question doesn’t own its own transportation chain but provides them on rent from other third-party logistics solutions which increases the transportation costs manifold.
This problem can be solved if logistics firms use their own transportation systems and have service as their first motivation, not profit. Logistics firms should understand that profit comes when clients are serviced.
Business Process Management
Business process management refers to the entire processing of goods in terms of the business. To logistics, this means packing things in a way that facilitates better goods management and transportation.
The main strength of good business process management is a team of skilled workers. Many logistics firms lack skilled hands. As a consequence, the packages often get damaged. This can lead to losses and embarrassment on the clients’ part
The solution is of course to hire only skilled and experienced workers. Experience is gained and so, providing workers with occasional walks in new areas is also a good way to improve their efficiency.
Improved Customer Service
Improved customer service is not a problem facing the logistics world but something which the logistics world craves for. Clients become permanent clients when they are provided service as well as care. The problem is that even after tempering of goods and poor service, logistics firms areneither ready to provide compensation nor ready to apologize.
Logistics firms should not only do their service properly but also relief in case something goes wrong. The absence of this particular feature has set back many.
Supply Chain Visibilities
The whole process of transportation, from the collection of goods to its delivery and everything in between, should be completely transparent to the clients. Very few logistics firms care about this point. Most of the time, care is not taken to keep the client informed once the goods have been collected.
Different kinds of goods require different storage conditions. Temperature controlled, frozen, spacious, etc., are some of the requirements certain goods need. Due to limited resources, many logistics firms are unable to conform to goods standards. As a result, goods get spoiled putting their owners in trouble. Another problem is security. Security cameras, proper shutter, and locks, 24/7 guards, etc., are some of the basic security measures.
Retaining And Training Labor
Experienced, all-rounded workers are constantly needed in a logistics field. These kinds of labors are extremely difficult to be found. The staff team should not only be trained and well-versed in their fields but should be put to regular training as well. This avoids grave situations like tempering of goods, product spoilage, etc.
Reducing Labour Costs
This is another factor which adds to the cost of logistics services. These kinds of problems are in particular faced by logistics firms which do not have a surplus supply of human force at their fingertips. There are and will be situations when a larger number of working force would be required. Such logistics firms usually refer to third party logistics firms for help which considerably increases the cost while delaying the work at the same time
A larger number of workers should be appointed and orders should be studied carefully before accepting to avoid these kinds of problems and losses on the client’s part.
Expanding/Selling to New Markets
A logistics firm should be well-rounded in different markets. This not only benefits the firms but also its clients. Clients usually need to consult their logistics firm before shipping goods to a particular area or through a particular mode of transportation. An ideal logistics firm should purchase the goods at the lowest price possible, pack it, and ship it to the client where it is destined
This true one door shipping proves very good for the client. Unfortunately, due to low resources and a small expansion of many logistics firms, this objective remains mostly untouched.
Regulations, Security, And Other Compliance
Different countries have different laws regarding logistics and shipping of goods. Keeping track of such rules and regulations can be a frustrating job for the client. Hence, it is the duty of the logistics firm to actually guide their clients and take care of the legal work.
Reducing shipping costs is one of the easiest ways of reducing the overall costs. Yet, many logistics firms seem to ignore it. What they focus on is material costs, labor costs, etc. This is the wrong approach as compromising these factors could mean a loss to the client if something unfortunate happens.
Instead, trying to reduce the shipping costs is easy and safe. The ideal logistics firms recognize this.
Technology Strategy And Implementation
Many logistics firms, despite having enough technology, fail to use them properly. This is one of the important matters of concern for the logistics world. Other than just technology and skilled labors, optimal planning and implementation are also mandatory. Different situations require different management and that’s where selective strategy comes into play. Selective strategy refers to choosing one plan over another with regard to the present situation.
The problems facing the logistics world are grave. Logistics firms, such as GHS Logistics, are taking appropriate measures and trying their best to provide an all around good experience to the clients. Although GHS Logistics face the same problems but we have never let our clients face any problems.
GHS Logistics Consultancy FZE
Tel : +971-4-3321334
Fax : +971-4-2851915
Email : email@example.com
P.O.Box# 442554 – Dubai.
Dubai, United Arab Emirates.