17 Jun Tips On Overcoming Supply Chain and Logistics Problems
If you’ve ever pondered on ways to navigate the issues with supply chain and logistics, then this article is for you. In simple terms, logistics and supply chain are all the activities required by an organisation to convey your goods. This includes acquisition, transportation and storage of goods.
The significant difference between supply chain and logistics is that a supply chain is a system used to manage and coordinate the business distribution process of an organisation. In contrast, logistics deals with the flow and storage of goods of a business organisation.
Times have changed, and so has the nature of logistics as well as supply chain. The pandemic caused setbacks that brands and organisations were unfamiliar with, and these challenges have also led to increased competition in the e-commerce space.
Challenges of supply chain and logistics
As mentioned earlier, the supply chain and logistics organisations continue to face specific challenges. Some of these challenges include
- Difficulty In Predicting demands: Demand forecasts that help retailers and suppliers of goods and services have been shattered, especially after the pandemic. There’s uncertainty about the actual needs of consumers across various sectors.
- Increasing Freight Prices: The need for container shipping has drastically increased, especially after the pandemic. Increased demand could lead to insufficient shipping capacity. This unprecedented shortage of shipping containers has led to a spike in pricing.
- Material Scarcity: When there is an abrupt rise in demand, being unable to meet up becomes inevitable.
- Port Sector Issues: Issues arise due to high turnaround times caused by delays in cargo evacuation. This makes shipping companies suffer unreasonably.
- Cost Of Fuel: The fuel cost is the highest challenge faced yet in the shipping industry. Increased fuel price automatically increases surcharges added to freight rates. This eventually reduces the revenue of truckers.
- Customer Services: Customers need detailed information about the location of their products at all times. When delivery services can’t meet up with their due dates, there’ll be a decline in the rates customers will be willing to pay.
Solutions To Supply Chain And Logistics Problems.
Here are a few solutions to tackle the challenges faced:
- Diversity Of Sourcing In Strategy: Stretch out your sourcing range, primarily geographically. This helps increase abundance and choice within your distribution chain. Having more than one supplier enables you to adjust to the ever-changing market supplies.
- Maintain liquidity: Through flexible access to capital, your business remains protected. A flexible line of credit that could be used to stock up on perennials in high demand should be made available.
- Availability Of Alternative Shipping Ports: You can’t rely solely on one shipping port. To avoid disappointments, you should identify different shipping ports to facilitate the easy movement of goods.
- Collaborate With Freight Forwarder: Partnering with a freight forwarder gives you the ability to track and manage your goods and services. This is a very important solution to common supply chain and logistics challenges.
- Incorporation Of Algorithms: Efficient operation of your business process requires a corresponding improvement in business processes. Incorporating a predictive algorithm is necessarily helpful in identifying weak links in the supply chain and logistics.
The challenges of the supply chain and logistics have come to stay. So, either as a seller or consumer of goods, it’s advisable to know these challenges and solutions. This knowledge helps you stay abreast of the ever-changing situations of the market.
If overcoming these challenges are beyond you, you could always go for a freight forwarding service. These people are professionals and would be thrilled to help you out. You’ll be glad you involved them.