Challenges of logistics and management
Logistics and management face various challenges, which can vary depending on factors like industry, scale of operations, and geographical location.
Main Logistics Management Challenges are-
1. Customer Service
Logistics management is about providing the right product in the right quantity to the right place at the right time. One of the significant challenges in the logistics industry is that customers want full transparency into where their delivery is at every point in transit. A customer’s shipment location is currently as interconnected as your social network. As customer expectations have increased, their willingness to pay for fast shipping has decreased, with about 64 percent of consumers unwilling to pay anything extra for less than two-day shipping.
2. Transportation Cost Control
Another significant logistics challenge for logistics managers is controlling costs in your transportation budget. Fuel prices are among the highest, contributing factors to transportation budget concerns. This year, higher fuel prices will likely increase transportation costs for U.S. shippers by pushing fuel surcharges. Additionally, rising U.S. diesel fuel prices are fuel surcharges added to freight rates, reversing a two-year trend that cut into the revenue and earnings of truckers as fuel prices plummeted.
3. Planning & Risk Management
To stay as efficient and effective as possible, periodic assessments and optimizations of each business sector are necessary. The adjustments are put in place in response to changes in the market, such as new product launches, global sourcing, credit availability, and the protection of intellectual property. Managers must identify and quantify these risks to control and moderate them.
4. Supplier/Partner Relationships
It’s vital for suppliers and partners to create, understand, and follow mutually agreed-upon standards to understand current performance and opportunities for improvement better. When a supplier and partner have different communication measures, it leads to an insufficient supply chain and wasted time.
5. Government and Environmental Regulations
Carriers face significant compliance regulations imposed by federal, state, and local authorities. As well as federal laws, environmental issues such as the anti-idling and other emission reduction regulations created by state and local governments have created concern that the compliance costs could exceed their benefits.
