Whether we make purchases online or at the local market; we are directly or indirectly served by the logistics industry.
Reports reveal that the logistics sector has become the world’s largest business, and is known as a billion dollar industry that helps prop up the world economy. Moreover, it opens job opportunities for people all around the world.
These supply chain professionals have a lot to do, ranging from warehousing, transportation and inventory, to delivery management. Many businesses prefer to have their own dedicated logistics team, whereas others prefer to outsource services to third parties. It is believed that third-party services lead to higher profits for growing businesses.
Logistics site Llama Soft states, “Supply chains serve just about every person in the world. It’s a careful balancing act to ensure the right products are available at the right time, price and location. And while supply chain decisions can affect a massive population, few people understand just what goes into making them – and the role market, industry and external factors play in guiding businesses to the right answers about their product mix. Many of those factors, such as customer preferences, competition, weather and regulations, are outside of the enterprise’s control. It leads to some scary “what-if” scenarios.”
Although the logistics industry is booming, there are still scary facts about this sector as well. You might be interested to know a few of them:
1. Budget constraints are always high:
When we talk about small and medium scale businesses, budget is always a big constraint and if not adequately maintained can get out of hand and become a s’cary monster’ for some business owners. Warehouse management systems are a great tool to employ in order to run a logistics company in a cost effective manner. Many growing businesses these days need to optimize and streamline processes by using software-based solutions. Some of the best examples include wms system’s that can help supply chain companies better manage all warehouse tasks with ease.
2. Challenges in maintaining everyday operations:
You may enjoy the same day or second day delivery of your ordered product, but have you ever thought how tough it may be for logistics companies to make that happen? It can be hard and at times ‘scary’ for logisitics companies to get goods to your doorstep on time and in perfect condition. From car accidents on the freeway to the tempreture in the back of the truck going wrong, logistics professionals are constantly having to monitor and ensure their cargo is being looked after no matter what challenge may arise along the way.
3. Shorter delivery times and frequent orders:
With huge growth in the eCommerce industry, the supply chain sector is facing greater challenges than ever before. The frequency of orders is increasing by the day, and these teams need to work hard to serve demands. The higher expectations regarding fast deliveries and bulk orders puts a heavier strain on logistics around the globe, a scary thought, if your logistics company isn’t prepared.
4. Driving to remote locations:
The logistics sector is definitely challenged when having to deliver to some of the world’s most remote locations. This is made possible because of supply chain setups functioning via road, air and sea.
5. Marine transportation and safety threats:
Although marine transport is one of the most popular and eco-friendly modes of transportation in the logistics sector, the ocean always poses a secure threat for all those aboard. The rising number of sea-based crimes is definitely challenging logistics companies.
6. Seasonal demands pressure:
As people are spending more and more time buying things online, the logistics sector is more pressured than ever during the holiday season. However, they are now trying to use the power of AI and advanced algorithms to analyze customer behaviours so that demands and supplies can be better balanced and maintained in the future.
7. Availability and cost of labour:
There is no doubt to say that the logistics sector serves millions of people with a variety of job opportunities around the world. Still, they are facing scarcity of labour to meet the desired demand. Furthermore, the rising cost of labour management makes it difficult to handle market pressures. Many industries these days are following flexible work hour options to attract more people to work in this sector.
8. Stock keeping at warehouses:
Maintaining supply and managing stock is still a nightmare for warehouse managers. It’s difficult to maintain and track inventory and shipping on a regular basis. Many of these industries are now using warehouse management software to ensure proper flow of goods.
9. Growing pressure of multiple delivery channels:
As the logistics industry operates over multiple delivery channels including air, sea and road, these professionals are always under pressure with a large amount of data to handle. Thanks to big data analysis algorithms that are now supporting warehouse management and multiple delivery channels, it’s easier to keep on top of ingoings, outgoings and consumer trends.
10. Being eco-friendly is not that easy:
Everyone expects the logistics sector to be eco-friendly, but the implementation of such ideas is not easy for such a large, well-established global industry. Logistics companies are being held more accountable than ever before to better manage operations in a way that doesn’t pose any harm to the environment. Taking on the task on improving logistics systems to become more sustainable scares a lot of companies, especially those who are more dependent on fossil fuels.
Author Bio: I’m Jaylin: SEO Expert of Leelija Web Solutions. I am a content manager, and the author of freeopenbook.com and a full time blogger. Favourite things include my camera, travelling, caring my fitness, food and my fashion. Email id: email@example.com