The supply chain is a vital component of almost every business and logistical problems can have a terrible impact. Here’s how to solve some common issues! Logistics is like the lubrication in the gears of your business. When logistics are running smoothly, your business is, too. But logistical problems can bring the speed of business to a screeching halt.
We want to help you avoid that. So, we created this list of common problems faced by logistics companies and their solutions.
This short read can eliminate 5 of these problems before they have serious repercussions on your business. Or, even if the damage is already done, these solutions will get your business running smoothly again in no time. To avoid these logistics challenges and save some serious time and money, follow the tips in this guide.
1. Documentation Errors
Papers equal problems. Documentation, such as invoices, contracts, and delivery notes, is a frequent and necessary part of the job. Unfortunately, papers can be misplaced or forgotten at any point of the logistics cycle.
The best solution is to eliminate papers altogether if you can. Switch to digital sending and receiving of documents.
2. Delayed Inventory Information
Even with the use of software for documentation and inventory, missing information can still be a problem. One of the biggest reasons for this is a delay in the reporting of inventory information.
For example, someone in the warehouse can digitally confirm receipt of an item. But, perhaps, this information doesn’t show up immediately to those at other ends of the business. Clients placing an order or drivers out on delivery won’t see right away that the item is in stock. Mistakes are made or profits are lost simply because the information wasn’t updated in realtime.
The solution is to switch to a cloud-based inventory reporting system. Employees and clients at all ends will see accurate inventory information at all times.
3. High Transportation Costs
Transportation costs depend on a lot of factors—sometimes too many to keep track of. Roadwork delays, weather, the price of fuel/carriers and more can suddenly and significantly increase transportation costs. They are also very subject to fluctuation.
Fortunately, technology gives us the solution. Emerging logistics software, like the InLog CLS platform, incorporates AI to reduce transportation costs. The AI can track transportation and make money-saving adjustments, like route changes, better than humanly possible.
4. Late Delivery
Few things hurt a business more than broken promises. Not meeting delivery deadlines makes you look untrustworthy. Even if it’s the fault of your carrier and not you, you’re still the one who looks bad.
Make sure your deliveries are always tracked. And always report accurate information to clients/partners about who the carrier is and their terms.
5. Late Payments
Late payments cost businesses trillions of dollars per year. And yet, the solution is so simple. Instead of waiting on past-due payments that may never come, call ahead of time. Send out payment reminder calls a week or two before the due date.
Then, you’ll have significantly more on-time payments. That makes your income a lot more reliable and your budgeting much easier.
Don’t Let These Logistical Problems Get the Best Of You
You can’t always avoid logistical problems. But, with these tips, you can avoid most of them. And the rest you can fix. Don’t let these logistics problems get the best of you. Save this list and follow these tips.
Do you need more tips on running your business? Or perhaps you’d like more information about the latest technology. Lucky for you, we have blogs on both of those topics and more. Check them out.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.