Logistical issues: Meaning, critical issues, and impacts

Companies face several logistical issues including late pickup and delivery, damaged goods, rising transportation costs, etc. These problems directly affect the delivery time to the customers, ultimately affecting customer satisfaction.

There are a few important reasons why companies face logistics issues including:

• Poor route planning
• Unpredictable weather conditions
• Rising fuel costs
• Technical difficulties

Logistical issues meaning

Logistics issues are problems that arise during the pickup and delivery phase of the products. These problems can be fixed with the right measures, so they don’t happen again. These issues can add to logistical costs which might lead to financial losses wiping out a chunk from the sales turnover.

Key issues and challenges for logistics

Have a look at few current issues in logistics and supply chain management faced by Indian companies and how to overcome these problems:

• Lack of adequate logistics management software

Even though getting logistics management software might come with a high initial investment, it can result in cost savings in the long run. Logistics management software oversees inbound and outbound transportation management, warehouse management, processing orders, inventory control, etc. It coordinates with supply chain activities like production, shipping finished products, etc.

• Delayed pickup and delivery

Delayed pickup and delivery are two of the most common issues faced by companies. This can be due to vehicle breakdowns, damaged packages, inadequate logistics management system, weather conditions, etc. Even a sudden or unexpected increase in shipment delivery volumes can overwhelm a delivery company and lead to delayed delivery.

• Damaged goods

Damaged goods are the leading cause for product returns. Usually, goods are damaged while they are in transit. Shipping damages lead to increased logistical costs [arising from reverse logistics and product replacement] and unsatisfactory customer experience. Inadequate packaging and mishandling of the products lead to shipping damages.

• Rising transportation costs

The increase in transportation costs affects supply chains across the country. Freight charges have escalated since the pandemic of 2020. Increase in fuel prices and toll charges as well as shortages in truck availability have further increased transportation costs not to mention the rising labor charges for the drivers in charge of the truck.

• Bulk order intensity ratio

Receiving bulk orders is a major difficulty for companies, especially those without an adequate logistics management system. If you receive a bunch of orders within a short timeframe, it becomes hard to keep up with supply chain timelines. High volume of orders received makes it hard to prioritise orders and deliveries.

Impact of logistical issues

Have a look at the impact of logistical issues on a company:

• Unhappy customers
• Increased logistics costs
• Missed delivery deadlines
• Loss of business

How to prevent logistical issues?

Each problem must be tackled individually to overcome logistical troubles. However, there are certain measures you can adopt to prevent logistical problems:

1. Get adequate logistics management software

Logistics management software increases the operational fluency of logistics activities. It can provide timely and accurate logistics information to help bring down expenses and enhance customer service. There are several advantages that a logistics management system provides:

• Logistics analytics
• Order management
• Inventory management
• Warehouse management
• Transport management

If you are a company that uses its own trucks to transport the goods, then you can also try using a Transportation Management System [TMS]. This is a platform that helps in the planning and execution of physical movement of goods. It comprises of monitoring, organising, managing, handling, and other aspects in the transportation of products from order placement to final delivery.

2. Prevent shipping damages

You can prevent shipping damages using the following methods:

• Use the right packaging to ensure the safety of the package. The protective packaging material needs to be chosen considering the type of product and the mode of transport such as road, sea or air transport. Moreover, weather conditions may call for water-resistant packaging, the use of silica gel packets to control humidity, etc.
• Use of the right labels such as ‘fragile’, ‘handle with care’, an indication of ‘upward’ side, ‘keep dry’, ‘don’t trample’, etc., can help the logistics company employees to handle the products accordingly and avoid mishandling.
• Use fillers to avoid any empty space in the box. A filler is necessary to keep the product in the box intact. Various filler materials are available in the market such as bubble wrapping, air pillows, green cell foam, etc.

3. Consider outsourcing logistics

The objective of logistics outsourcing is to simplify the logistics process of a company and have logistics experts at your disposal to strengthen your logistics chain. Outsourcing is a tactic employed by companies to simplify the logistics process and gain access to more markets. Companies generally outsource the following logistics activities:

• Distribution and warehousing
• Warehouse management
• Fulfillment
• Transportation
• Reverse logistics

4. Avoid shipping delays

Eliminating shipping delays is important to keep your customers happy and loyal to your products. Here are a few things you can try to avoid shipping delays:

• Adequate forecasting of product demand is necessary to prevent a shortage of products when a company receives bulk orders.
• Companies facing delays in raw material delivery must consider alternative suppliers or sources of goods to diversify the supply chain.
• Coordination between suppliers and logistics partners will keep deliveries on track, eliminating delayed deliveries.
• Develop contingency plans for natural disasters, labour strikes, and other conditions that can happen and take place in the future.

If you are looking for a trustworthy logistics partner, to deliver your products, try Tata nexarc. With Logistics on Tata nexarc we have been able to overcome all common logistics and transportation challenges. Our platform allows you to book a shipment in 4 simple steps. You can get free transit insurance and can avail door-to-door delivery across 19000 PIN codes.