What are the Logistics Issues of a Large Distribution Center?
Summary
The article discusses the challenges faced by large distribution centers in the logistics industry.
The challenges include logistics management errors, transportation costs, delivery delays, fragmented communications, lack of manpower, and erratic demands.
The article suggests that incorporating the right technology, such as telematics, GPS tracking, and warehouse management systems, can help overcome these challenges and improve the efficiency and profitability of the logistics industry.
Advancement in technology has expanded horizons in the Logistics Industry.
Delivery of products on time and in hand reduces the burden on customers in the logistics industry.
Innovative technologies like vehicle tracking, telematics, GPS tracking, and fleet management software allows businesses to grow more efficiently and profitably.
In simple terms, logistics is defined as management, detailed planning, implementation of complex actions, and organization.
In most cases, logistics extend their workflow to both information and physical goods. It not only follows the physical directory but also checks in goods, including time and information.
Despite the fact that logistics industries are evolving and integrating new technologies into local and global supply chains, many challenges continue to disturb them. There is no doubt that the larger distribution centers carry the greater burden of these challenges.
Let’s discuss the most commonly faced logistics issues by every large distribution center.
Logistics Challenges of large distribution centers
With a turbulent start to the new era, transportation and logistics companies integrate with innovative technologies like telematics, GPS tracking, vehicle tracking, etc to meet the growing customer needs.
The motto of the distribution centers is to make sure that the pick-up and delivery of the goods or information should be safe and hassle-free.
Let’s dig deeper to know about the most common challenges in logistics industries.
1.Logistics management errors
Logistics are trying hard to run smoothly under all circumstances, but errors still appear. If the logistics are not regulated properly, then there is a chance of having misplaced products, errors in picking, packing, delivery, or shipping of goods, damage during storage, or incomplete orders.
The impact of these human errors becomes much costlier. To reduce these unwanted costs, the logistics should adopt a proper logistics management system.
The warehouse management system helps the organization to reduce manual errors and unwanted cost damage. It also helps to streamline the overall process which makes it easier to track particular items without any delay.
A well-trained staff is necessary to maintain the process more effectively with the newer technologies.
2.Transportation costs
One of the key issues in the logistics industry is cutting the transportation cost. The solution for this problem is combined with the supply chain management system of the company.
Fuel costs keep on changing and mostly increasing, the key challenge is to keep the transportation cost low as feasible. It can be achieved by proper planning and innovative solutions.
Transportation costs can be reduced by consolidating the shipments and the most space used in the transports. Communication between the carriers is an effective way to reduce unwanted costs.
In a few places, there is a chance to reduce the number of carriers as well, it makes a huge difference.
The most common and simplest solution for managing transportation costs is to rely on third-party logistics organizations since they will have many contacts with other carriers to consolidate the shipments, hence transportation costs will be reduced automatically.
3.Delivery delays
Delivery delays are again, a common problem in the logistics industry.
Delivery of products can be delayed or standstill due to many reasons like pandemic issues, labor strikes, factory shutdown, and protests.
As these types of situations may affect the global supply chain, it’s best to have an alternative plan.
Unless the logistics have a large infrastructure, handling a large number of shipments at a time is not possible manually. It also includes driver shortage, vehicle shortage, and labor shortage.
The above-mentioned problems may delay the delivery which in turn reduces the business reputation. These days, Internet has become the source of connection to logistics industries.
Delivery delays can easily be handled by incorporating new innovative technologies like telematics, GPS tracking, vehicle tracking systems.
4.Fragmented communications
The logistics supply chain has so many links in between production to delivery, manufacturing to distribution, and each and everything in between, hurdles tend to happen.
Without a proper communication tool, tracking and catching manual errors is almost impossible.
It can easily be eliminated by having access to effective communication software systems that can incorporate the logistics management software along with access to the end-users.
This software involves everyone to access the goods, from production to delivery which helps to resolve the problem earlier.
5.Lack of manpower
The other most important challenge in logistic industries is manpower. If there is a shortage of skilled labor, then there are possibilities of having delays in the supply chain.
To overcome this problem proper labor management systems should be followed. If the vehicle arrives at the logistics, there needs to be a crane operator, forklift, loader, and unloader to process the goods without any problem.
Many advanced technologies have surfaced to maintain things effectively and smoothly.
6.Erratic demands
The other major concern of logistics industries is fluctuation in demands. The fluctuations in demand and supply have a major impact on the cost management systems of the organization.
During emergency or pandemic periods, demands may vary which are not expected or anticipated by the logistics.
To manage these demands during tough times needs proper information about manufacturing and retailing. Information gaps between the supplier and the logistics create a major impact on distributors to adapt to the changes.
A network management system should be implemented in order to accommodate the erratic demands and avoid last-minute delays.
Final words
There are still many more issues faced by the distribution centers on a daily basis. One simple and effective solution to the logistics industry is incorporating the right technology.
The logistics industry is rapidly evolving and has new creative software and automation to ensure constant communication, real-time tracking of goods, warehouse management, and real-time responses.
As a large-scale distributor, making use of these innovative technologies can help you handle almost all of the logistics issues listed above.
Team VAMOSYS
Team VAMOSYS have been into GPS business since 2014 and have good experience on GPS Vehicle Tracking, Fuel Monitoring, Fleet Management and GPS Tracker Devices. Writes article on various topics to share the industry experiences and knowledge.