5 Daily Problems Logistics Managers Contend With
Today’s economic system is defined by globalism. Multinational companies strive to conduct their operations across time zones and need complex logistical structures in place in order to be successful. So, within the context of global economics, logistics managers have a very important role to play. They help facilitate trade around the world and are an integral part to the success of companies. However, as the scale of the economy grows and the need for a more efficient supply chain increases, new challenges have presented themselves, making the job of the logistics manager more difficult than perhaps ever before. Today, let’s take a closer look at five problems that logistics managers find themselves trying to solve on a daily basis.
1. Delivering Great Customer Service
Just as in any other service industry, customer satisfaction is one of the keys to success for logistics managers. It’s all about giving the customer exactly what they need when they need it – the products they need to have shipped should arrive at their desired location by the desired time. In addition, technology has developed to the point where customers can track their shipment at every step of the shipping journey. This has become more than just a perk for most customers – it’s now an expected feature. And, as customer service expectations have increased, we have also seen an increased focus on value. 64% of consumers, according to recent reports, are now unwilling to pay extra shipping fees for less than two-day shipping. We can understand this information as indicative of moods within the B2B shipping world as well – clients want a good deal on quick, reliable shipping that they can track at any point.
2. Controlling Transportation Costs
However, logistics managers also have another challenge when it comes to providing a good deal for their clients – rising transportation costs. Fuel prices are one of the main drivers of shipping rates, so when oil prices rise, logistics companies are more likely to impose fuel surcharges to cover the difference. This year, we have seen diesel prices (and, by extension, fuel surcharges) rise, which can cut into company revenue and truckers’ earnings. This could further exacerbate the current driver shortage issue and create further headaches for logistics managers going forward.
3. Risk Management and Planning Concerns
Planning is essential in every industry, but it takes on an added importance in logistics owing to the rapid scale of change that can happen at any time. New global sourcing, intellectual property laws, and geo-political realities can completely change the most efficient way of getting a product from point A to point B. Continual reassessment of different business sectors are necessary to ensure efficiency. In addition, risks should be assessed periodically and moderated/controlled as best as possible.
4. Creating Great Relationships with Suppliers & Partners
Cultivating good relationships between suppliers and partners is not just essential for great customer management. With great relationships comes great communication, and this presents an opportunity for logistics managers to set the stage for more efficient processes. Standards and best practices can be implemented, along with mutually agreed-upon KPIs (Key Performance Indicators) that each party can look at to assess performance. This avoids the issue of having two different sets of measurements for performance, which can waste time and effort for both parties.
5. Regulatory Compliance
Carriers face the added burden of regulation imposed by federal, state, and local governmental bodies. As the law constantly changes, carriers need to be kept abreast of how these laws affect the way they do business. In addition, environmentally-minded regulations, such as anti-idling and other emission reduction laws, have concerned many industry who argue that the costs of implementing these regulations exceed the benefits they bring in.
AFP Global Logistics
For any and all of your freight shipping and warehouse storage needs nationwide, look no further than AFP Global Logistics. We provide a full range of shipping and logistics services, and our 25 years in the business have given us the tools we need to create customized logistics solutions that are tailored to the needs of each client we serve. We have what it takes to provide the superior shipping and logistics solutions that your business needs to thrive. For more information or to start designing your own logistic solutions today, get in touch with AFP Global Logistics at 410.590.1234 (toll-free 800.274.1237), email us at email@example.com, or fill out our quick and easy contact form here!