5 Typical Logistics Issues Every Company Has To Face

Transportation is key to every industry; no matter what you produce, you need a way to get your product from one place to another. Unfortunately, it can be difficult to organize efficient transportation solutions for your business.

Every company inevitably runs into logistics issues. The logistics industry itself is always changing, integrating new technology and facing evolving regulations–not to mention economic shifts.

While logistics issues are unavoidable, there’s no need to panic. There are ways to prepare your business to face these problems as they arise. The first step is to educate yourself on the issues you’re most likely to face.

Read on to learn five of the most common logistics issues that companies face today.

1. Transportation Costs

The largest logistics issue you’ll need to deal with is the actual cost of transportation. ‘Transportation costs’ is an umbrella term for the many distinct fees that go into the price of shipping items.

The biggest contributor to your transportation costs is fuel. If you have a fleet of trucks to transport goods, the fuel cost can get out of hand quickly.

Most of the time, the fuel you’ll rely on is diesel. Diesel fuel cost is currently on the rise, so fuel may end up being a bigger part of your transportation costs than it has been in the past.

The carrier companies you use also play a role in your transportation costs. You’ll likely need multiple carriers, but by keeping the number small, you can negotiate better prices with the carriers you do utilize.

You can also cut down on transportation costs by consolidating shipments, getting the most value out of each transport. This can negatively impact your delivery times, though.

2. A Shortage of Drivers

It’s no secret that the pandemic has led to severe staffing shortages across multiple industries. The logistics industry is no exception; it can be difficult to find drivers.

Recent labor shortages aren’t the only cause of the driver shortage. There’s a stigma around the position among younger drivers due to the long hours and time away from family that truck drivers often have to deal with.

Offering benefits and incentives that can offset these perceived downsides can make the hiring process easier. They can also help with driver retention, so you won’t have to hire as often.

Of course, a lack of willing applicants isn’t the only issue related to hiring. You also need to find candidates who can meet your high expectations. It’s not always easy to find people with clean driving records.

Then there’s the matter of proper licensing–a key element for any truck driver.

Working with truck logistics companies that hire and retain safe, trustworthy drivers is key to keeping your transportation running smoothly.

3. Dealing With Regulations

Government regulations on shipping are necessary, but that doesn’t mean they are easy to deal with. There is an intricate web of agencies that are involved in the logistics industry, and it’s hard to keep track of them all.

The Food and Drug Administration, Environmental Protection Agency, Consumer Product and Safety Commission, and more all have a hand in approving shipments.

It’s also frustrating to stay up to date on the various changes to transport regulations, and when these changes come into effect. It seems like the rules change every year.

It’s important that your drivers and cargo meet compliance laws; drivers are only allowed to spend a certain amount of time each day on the road. They’re also required to take breaks at certain intervals.

Many newer compliance laws aim to reduce emissions. Choosing the best routes will help you cut down on emissions while also helping reduce the fuel cost of your transportation.

4. A Changing Supply Chain

Few things are more important to the logistics industry than the supply chain. As digitization changes the way international trade is done, the supply chain is shifting.

The keyword when it comes to your supply chain is visibility. The process needs to be transparent and legible from all sides; not only do you need to know where your product is, but your customer does too.

Great visibility starts in the warehouse. You should have a firm grasp of your current inventory, as well as what items you have coming in. That allows you to manage your work more efficiently.

Order management and outgoing shipments need to be tracked as well. Once something does ship out of the warehouse, you need to make sure you can monitor its progress.

Not only do tracking updates help you respond quickly if an issue occurs, but they also keep your customers happy by keeping them in the loop about their purchases.

5. Technological Shifts

New technologies are developing faster than ever, and it can be difficult to integrate new tech into your operation without disrupting your workflow. The payoff is almost always worth the interruption, though.

Look at all the issues above: you need to keep costs down, manage your supply chain, and comply with a variety of emissions and labor regulations. You need to do all of that while facing a driver shortage.

How are you supposed to manage all of that? The answer is simple: by having the best technology available.

Fleet management systems can put your trucks on the fastest, most efficient routes, saving you money on fuel and bringing you in line with environmental regulations.

Tracking software ensures that you know where your shipments are at all times, giving you a deep understanding of your operation. As a bonus, it keeps customers happy.

Automated systems for packaging, labeling, and sorting can increase the efficiency of your warehouse.

No matter what logistics issues you’re facing, odds are good that integrating new technology can help.

Prepare Yourself for These Logistics Issues

Logistics issues are an unfortunate fact of life. Whether you’re re-orienting your supply chain, facing a shortage of workers, or integrating new technology, there’s a lot of work that goes into improving your logistics.

If you want to make sure that your company is maximizing its efficiency, you need the latest and greatest in both software and hardware. Visit our tech blog to find the tools your business needs to succeed!