Top 5 Logistics Challenges And How To Overcome Them

Virginia Miller

October 11, 2023

If there's one thing that all business owners can agree on, it's that logistics can be a real challenge. From shipping and delivery to managing stock and inventory, there are countless things to keep track of. But don't worry – we're here to help! In this blog post, we'll take a look at the top 5 logistics challenges faced by eCommerce businesses, and offer some tips on how to overcome them. So read on for some valuable insights into running a successful eCommerce business!

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Challenge 1: Digitization of the Supply Chain

One of the most talked-about challenges for the logistics industry is the visibility of the supply chain. Supply chain visibility refers to enabling the ability of a company to locate a specific product or part. This shipment tracking from the starting point to the final destination is called supply chain visibility.

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For most parts of the world, logistics companies are still struggling to enhance their supply chain visibility. They do have a chunk of data assistance to track the availability of products within the warehouses or factories. But most of the companies still lack visibility upon their operations. The modern-day technologies introduced after the pandemic allow businesses to collect, analyze, and share real-time insights into their product state.

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With this implementation, the companies are now getting a clear picture of how the entire supply chain is working on the operations ground. And now, they are most likely eligible to respond quickly to the identified problems. As this was one of the crucial logistics difficulties, the companies are now investing in digitizing their supply chains! A trend will implement new data collection ideas to boost the business potential with better supply chain resilience.

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Challenge 2: Revival Attempts

The pandemic of 2020 revealed the loopholes in the supply chains of logistics companies. And this is now triggering the stakeholders within the industry to look closely upon the resilience factor of the supply chain. They ask the logistic firm owners about their strict recovery plans after the pandemic and what they would do if any such situation occurred again.

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The businesses with dynamic supply chains survive in 2021, but those who don't have access to it are still struggling. For successful revival attempts, the supply chains of the logistics firms need enhanced visibility, reliable analytics, and dynamic options for freight procurement. And digitization is the key to adapting all of it! Companies need to make the digital investment to connect their supply chain again with the world and make it highly orchestrated.

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Challenge 3: Prioritizing the Sustainability

Logistics businesses somehow struggle to adapt to the sustainable practices that make them suffer in this fast-paced market. Hence, it becomes one of the evident logistics issues that will suppress the profitable returns. Therefore, some sustainability ideologies, such as route optimization and controlling the transit of half-full trucks, are accountable for being efficient and advantageous.

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Apart from this advantage, the businesses reviving their supply chain are pursuing sustainable practices throughout the supply chain seem to be prepared to take on any complications due to operational bottlenecks and legislation decarbonization concerns.

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Challenge 4: Dealing with Climate Change Problems

There are many instances where climate change possibly becomes a logistics challenge for the forthcoming companies. With climate change, the logistics issues will multiply with legislation concerns. The companies that haven't prepared before time will suffice in such situations. But the logistic companies that have their adaptations clear within the operations will have the advantage during the climate change crisis.

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Sustainable logistics practices are accountable for being more profitable than non-sustainable practices. Therefore, the companies adapting ideal measures to overcome logistics difficulties will be more efficient in dealing with climate change challenges. Some of those measures include using recyclable packaging, preventing excessive packaging, and reducing the environmental impact.

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Today's consumers demand the industries be more eco-conscious, especially for the e-commerce sector. Some of the companies operating with their own logistics team are assuring to limit carbon emission or eliminate it. Moreover, if the logistics companies try to adapt renewable energy options in their operations, there is a possibility that they can prevent being the sufferers in climate change scenarios.

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Challenge 5: Rising Prices of Fuel and the Impact upon Economy

When the fuel price increases, everything around ordinary people will get expensive. It is because the cost of transporting goods increases substantially. With land, air, and water, transportations are turning expensive with fuel prices. The logistics industry is also facing the challenge of maintaining low shipping costs for delivering the products to consumers. Due to this impact, severe delays within the supply chain are possible. The companies need to decide which truck they need to fill with goods to minimize the fuel costs.

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As of 2021 and the forthcoming year, rising fuel cost is accountable as one of the primary issues in the logistics industry. The route optimization technique is somehow responsible for helping the logistics industry overcome this chaotic challenge. The companies that haven't adopted it yet are suffering the crisis. But with ideal implementation, the companies can now detect the fastest route to delivery and save money upon fuel expenses. Hence, this is economical for the logistics firm and the consumers, as they don't have to pay high shipping costs.

Conclusion

The five challenges we’ve discussed are only the beginning of what logistics professionals face in this ever-changing, complex industry. If you want to overcome these and other obstacles that come with eCommerce fulfillment in today’s environment, contact Simpl fulfillment today. We offer customized solutions for all your needs including inventory management services, warehouse operations assistance, order processing routing strategies and more. Our goal is to make it easier than ever before for businesses like yours to focus on running their business while our team takes care of everything else.

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