What are the 4 main challenges of logistics and how to overcome them?

Logistics is one of the most prominent industries of the Brazilian economy. The network is highly concentrated on highways, with roads that cross the country throughout its territorial extension.

This is one of the main points in the logical analysis of this industry: how to serve different customers from different states with agility? How to accomplish this without neglecting the importance of the final cost of transportation?

These are some common questions in national logistics, which reveal the need to innovate and invest in operational performance. Throughout this article, you will learn about the 4 main challenges of logistics and what are the best strategies to overcome them. Shall we?

1. Organization of the inventory’s physical space

Inventory is the heart of any company. It is very common for companies to have little space available to fit their goods and to find bottlenecks when optimizing space. Using customizable pallet racks is a very valid tip, as they allow for a better use of the area and are easier to transport.

Carrying out shipments always within the appropriate time is also a very valuable tip. This avoids the accumulation of goods that should have already been delivered in the stock, which hinders the company’s normal flow.

2. Fleet monitoring

Spending on fuel is one of the biggest challenges in logistics. In this sense, the vehicle fleet needs to be monitored in order to adopt shorter routes and make the most of nearby and similar routes. Using good fleet management software can be a smart option.

3. Transportation safety

Safety is the starting point for the logistics sector. The merchandise should arrive to the customer in perfect condition in order to avoid future inconvenience and consumer-company relationship problems. To this end, care must be taken from the initial handling, respecting the characteristics of each product. Products made of glass, for example, demand specific care that is different from perishable products.

4. Outdated technology

The organization and shipping of goods are two factors that raise questions and cause problems that are common to many carriers and companies in the industry. In this analysis, there are several obstacles when it comes to separating merchandise, checking recipients and organizing the day’s shipments (according to shipping priorities).

The vast majority of these processes end up being carried out manually, preventing greater productivity and agility. At this point, we have technology as a great strategic partner. That is because it is possible to automate orders and create a more dynamic workflow, with less manual intervention and more productivity gain.

Issuing invoices and looking for merchandise in the inventory are steps that greatly burden the employee’s available time. Therefore, they need to master technological tools such as Integrated Management Systems (ERPs) and freight calculation software, so that they may dedicate themselves more to the inspection of the processes.

Every company needs to have strict control over its expenses in order to achieve an operational balance and generate profit. Technology is a good answer to many bottlenecks among the most diverse challenges in logistics. Thus, efficiency and productivity are the keywords for those who want to work better, faster and with unmatched quality.

Now that you understand what the challenges of logistics are and how they can be solved, how about sharing this post on your social media? That way, your friends will also get their answers about the subject!