Topmost Challenges Faced by the Today’s Logistics Industry

Cutting transportation costs have been one of the top strategic challenges in the logistics industry at the global level. This article revolves around the top logistics challenges that all businesses should be prepared to overcome. If you're facing one of the following hindrances, working with a 3PL provider can help you out. Here's what you need to understand about the challenges faced by the logistics industry and where you can gather optimal solutions.

Business Process Improvement

Staying on top of business processes is another challenge. As new opportunities emerge, it will give you the advantage to adapt and implement these changes for better service. It can be expensive and challenging without the right full-service freight brokerage solutions. Therefore, a 3PL or 4PL provider will work as an extension of your business. They help you improve your process with planning, strategy, and required services.

Fuel Costs

Fuel cost is one of the biggest logistics challenges. Higher fuel rates will significantly impact the cost of wages and transportation for shippers. Working with a third-party logistics partner will help you meet these changes with flexibility. A visibility software can also assist you to streamline these challenges.

Better Customer Service

Today’s customers want to have tracking information and real-time updates for shipment. They also look for faster shipping, such as two-day or same-day shipping. A 3PL the provider can help you achieve full visibility throughout your supply chain so you can provide your customers with the information they require.

Manpower Management

Another challenge in today’s logistics industry is managing manpower. Dealing with your warehouse staff, drivers, and transporters should be handled efficiently. Logistics companies such as freight broker manage employees better by assigning managers in some major service areas and scheduling solutions.

Inventory Control and Visibility

Knowing what inventory you have in stock and where it is located are the primary features of inventory visibility. This aspect is important to all businesses, but gaining this visibility and controlling it can be a challenging task. A 3PL provider helps you with visibility via the use of advanced technology in the warehouse. They can make you more efficient use of your time, improve the predictability of inventory movement, increase security and quality control, and more.

Tech Development

The cost of adapting to the advanced technology used in the supply chain is high, but it is a crucial requirement. A 3PL partner will help out, as many of these organizations are equipped with the technology. These technologies include radiofrequency identification for barcoding and scanning (RFID) and material handling technology. Employing these technologies is expensive, that’s why you can take advantage of a 3PL provider.