Reduced barriers to trade and investment have enabled global logistics to grow slowly and steadily in the last decade. However, coordinating the flow of raw materials, finished products, information, and money can pose many challenges to manufacturers and other stakeholders. It is important to address these issues in order to improve operational efficiency, and eliminate financial losses. The top four concerns for global logistics have been detailed below.
1. Visibility Concerns
Today’s customers are very demanding. They require full visibility of the various stages of logistics– from dispatch of raw materials, warehouse status, to final delivery to retailers. This even includes goods that are rejected or returned, and the process followed for them. Since global logistics involves a lot of time and effort, offering complete transparency to customers can pose a challenge.
2. Infrastructure Concerns
Infrastructure at ports, airports and warehouse depots plays a key role in ensuring smooth flow of materials. Issues such as inefficiencies in transport, low or no technology adoption, and poor condition of warehouse infrastructure, lead to congestion problems in delivery and loading areas. Moreover, goods movement from Asia to US has been consistently increasing due to free trade agreements and increase in global demands. This means, if there are infrastructure shortages it could affect the delivery time of the shipment. With logistics plagued with congestions and time delays, manufacturers need to build new facilities or introduce technology solutions that augment infrastructure, paving the way for seamless movement of goods.
3. Carrier Capacity Concerns
Developing nations are unable to cope with traffic growth, and are restricted by capacity constraints, which pose challenges for timely delivery. To retain existing customer base and find new ones, manufacturers need to take the capacity issue seriously. Within the US, there are domestic shipping issues due to trucker shortages, which impacts the flow of cargo and shipment delivery schedules. Trucker shortages are leading to high trucker rates, as well. With consumers ordering goods with ease, carrier capacity is critical for the global logistics ecosystem to deliver goods without any hitches.
4. Safety & Security Concerns
Materials move from warehouses to ports in trucks, and are loaded on to ships to reach different destinations across the globe. This means the shipment passes through a number of people and checkpoints, which makes it susceptible to theft and damage. And, if there is lack of security measures like cameras and entry-tracking systems, there will be no trace of those who break security protocols and procedures. To secure the goods and the supply chain processes, manufacturers need to participate in government security programs such as C-TPAT or AEO.
A delivery management system that helps overcome these global logistics challenges can change the way the industry operates. While infrastructure improvements are also necessary, a robust system can provide visibility, shorten truck wait time, avoid delays due to road congestions, improve planning, and generate real-time electronic PoD (Proof of Delivery) that verifies quality and tightens security.
If you’re interested in optimizing your logistics, perhaps a digital delivery management solution is the right choice. To explore IGotIt’s industry-leading solution, drop us a line, and we’ll be glad to get back.