Logistic outsourcing has become a common trend among business organisations these days. 

Today, businesses prefer to outsource their logistics and supply chain operations rather than managing them themselves.

Logistics outsourcing helps them save a significant amount of money and provides them with efficiency and reliability.

However, there are some common logistics and supply chain management challenges that organisations face.

In this blog, we’ll look at some common logistics challenges businesses deal with and share simple strategies to solve them. 

7 Common Logistical Challenges And How To Overcome Them 

Here are the top 7 logistical challenges that businesses face and solutions to fix these problems. 

High transportation costs 

One of the most common problems that businesses face is high transportation costs. Today, with the rising cost of fuel, transportation costs are also increasing.

Fuel is a huge factor in logistical costs, it often makes up to 50% of the total supply chain and transportation costs. 

However, these days, electric vehicles are quite popular, but there’s still room for growth and improvement.

Therefore, we are still reliant on diesel-powered vehicles. So, to reduce fuel and transportation costs, we can better optimise routes.

Today, we can use advanced technologies like an AI route optimisation system that can provide us with a well-optimised route with shorter distances and less traffic. 

Inventory planning issues 

Another supply chain and logistical problem that businesses face is inventory planning issues.

As per reports, businesses lose over $1 trillion every year due to understocking or overstocking.

And if your inventory is not well optimised, it can lead to problems such as cash flow issues, frustrated customers, and shrinking profits. 

To resolve this issue, businesses can employ supply chain planning tools like predictive analytics to predict the stock.

You can also automate inventory tracking to avoid understocking and overstocking the products. 

By applying these solutions, you can easily resolve inventory planning issues at your warehouses. 

Delayed deliveries 

Delayed deliveries are one of the most common logistics and supply chain issues. Delayed deliveries have also caused some businesses to lose their customers.

Dissatisfied customers avoid buying products from the same company. Therefore, it can severely damage the reputation of the firms.

Moreover, it can also affect the profits. Therefore, businesses must address this issue as a priority, as it has a huge impact on profits.

So if businesses are unable to manage in-house logistics and supply chain, they can outsource these services to a professional supply chain outsourcing provider like Cargaison Express.

Professional outsourcing services have the best systems in place to provide you with quality service at minimal costs. 

Handling returns 

According to research, e-commerce has a return rate of 17.6%, with reasons including defective or damaged products, misleading product descriptions, and failure to meet customer expectations. 

These returns not only increase operational costs for companies but also disrupt inventory management. 

Research shows that retailers lose $30 on each return. And the cost to process them has tripled during the recent boom in e-commerce shopping.

Moreover, 79% of customers expect free reverse shipping from the retailer. So, businesses can resolve these problems by streamlining returns by automating the complete process.

Also, make sure that your return policy is clear and easy to understand. 

Poor warehouse organisation 

Disorganised warehouses are another major problem that can disrupt supply chain operations. 

Disorganised warehouses can lead to slower processing times. It can not only delay deliveries but also leave customers dissatisfied.

You can automate your warehouse using advanced machines that can reduce human dependency and quickly prepare orders for shipping.

You can also invest in shelving and racking systems to maximise the vertical space in your warehouse. Space optimisation can also help you accommodate a larger number of products in an organised way. 

Lack of real-time visibility 

Lack of real-time visibility is another important logistics and supply chain problem. Today, customers are demanding live tracking of their shipments.

It allows them to predict the estimated time of delivery, and they can plan their schedules accordingly.

Unable to provide real-time tracking service to customers can leave them dissatisfied. So you can invest in tracking systems that can provide live tracking updates to customers.

You can also use warehouse management software that can manage the entire logistical process from inventory to shipping. 

Global shipping complexities and regulations 

Businesses are also facing issues regarding global shipping regulations. When a customer orders a product from a different country, it has to go through various customs regulations.

And these international and domestic shipping regulations keep changing from time to time. And being unable to comply with these regulations can lead to hefty fines or seizure of goods. 

To avoid these issues, businesses can outsource their supply chain operations to a trusted outsourcing partner who can manage international shipments professionally.

Cargaison Express: Your Trusted Logistics Outsourcing Partner 

Today, businesses are facing logistical and supply chain problems like high transportation costs, delayed deliveries, and poor inventory management.

These issues not only affect the efficiency of supply chain operations but also harm the reputation of your organisation.

Therefore, businesses must consider outsourcing their logistics and supply chain operations to a professional outsourcing service provider.

If you are looking for a trusted logistics partner, choose Cargaison Express. We provide reliable logistics outsourcing services to clients and are known for our professional approach to providing customised solutions to meet business needs. Get in touch with us to learn more about our services. 

FAQ’s 

1. What are the most common logistics problems businesses face?

Businesses often face challenges such as high transportation costs, inventory issues, delayed deliveries, and ineffective warehouse management.

2. How can I reduce transportation costs in my business?

You can utilize route optimization tools and automate supply chain tasks to minimize costs.

3. Why is inventory planning important? 

Good inventory planning helps avoid overstocking or understocking of products at warehouses.

4. What causes delivery delays, and how can I fix them?

Delays are often due to poor planning or disorganised warehouses. Outsourcing logistics to professional outsourcing service providers can solve this issue. 

5. How can outsourcing logistics help my business?

Outsourcing makes your logistics more efficient. It also saves time and money and improves overall customer satisfaction.