Six mistakes to avoid in a logistics business

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Six mistakes to avoid in a logistics business

Posted by: Arlethe Hernández
Category: Lastest, logistics consulting

In the area of logistics, there are some common mistakes that you should try to avoid. This is only possible with proper planning and attention to detail in each process.

Errors in logistics often cause great discomfort to customers and you may even lose the contract because a delay in delivery generates problems with the supply chain, loss of time and money, as well as the failure to meet performance indicators so important to companies.

So if your business is logistics or is a very important component of your value offer, pay attention to these mistakes that you must avoid making if you want to provide the best service to your customers and differentiate yourself from the competition.

Sending goods to the wrong destination

One of the most common errors within freight forwarders is shipping goods to the wrong destination. This failure is mainly due to incorrect processing of the waybill or BL.

Although, in most cases, the transport companies know where the merchandise is, making the return process is usually cumbersome, in addition to generating additional costs that result in inconvenience and loss for the company that hired you.

Failure to deliver on time

Unfortunately, it has become a common problem that orders are not delivered on time. Although on many occasions it is due to the fact that some carriers do not comply with the estimated time of delivery, there are other factors that generate these logistics problems, especially in Mexico.

In the specific case of the country, there are two very marked problems that need to be solved so that they do not continue to affect logistics processes: the shortage of land transport and the high turnover of carriers.

It is known that land transport capacity in Mexico can become scarce. This scarcity of supply is converted into an increase in the cost of transportation within the territory.

Additionally, the intense traffic in the big cities reduces the productivity and efficiency of deliveries.

On the other hand, the high rotation of drivers is another problem of logistics in Mexico.

No control over storage capacity

During times of peak demand, it is important that as a logistics company you consider the storage capacity of your facilities. In this way, you will be avoiding overloading goods that end up generating other problems such as theft, material damage, loss of materials and more.

In order to avoid problems, many companies end up outsourcing the storage process of goods, especially if they work with perishable or dangerous products. However, this leads to additional costs, delays in search and delivery, and excessive handling of goods that could be avoided with good planning.

Insufficient safety measures

Unfortunately, this is not new in the world of logistics, but it should be dealt with as soon as possible. When a logistics company does not have the necessary investment in security for the care and protection of its goods, it is making a serious mistake.

Having the necessary quality and safety controls to guarantee security within the warehouses is vital. This begins with the installation of surveillance systems, security equipment, and personnel selection. If you want to be competitive, you can’t afford to have your goods stolen from your own premises.

Problems with merchandise inventory
A common error that generates a serious logistics problem in Mexican companies is little or no planning. Being a national and international logistics agent, many times you must be prepared to solve last-minute problems in the supply chains of companies that could easily be foreseen in advance.

Having problems with merchandise inventory in a logistics company is deadly. How do you know what has been received? How many shipments have been sent? Were there returns? What is missing? These are questions that a good inventory system can easily be answered.

No performance metrics

Finally, there is a lack of evaluation processes in the dispatch processes. The absence of KPIs makes it impossible to have real data on the activity and performance of the logistics processes.

Through the KPIs applied to the dispatches of goods, it is possible to obtain useful and necessary information for the measurement of the delivery processes, correction of failures and application of improvements that allow the optimization of the tasks.

Its importance lies beyond knowing with certainty the operation of the company’s activities, it helps to reduce expenses and improve budgets in transportation costs, a problem that is a headache for many logistics companies in the world and especially in Mexico.

After knowing all these problems that you can face in a logistics business, it will be easier to prevent them and be always very attentive to the process and details. It is very important not to lose sight of the fact that all logistics services are focused on helping customers improve their supply chain processes, provide better service to their customers, and in general help them achieve their performance goals. This is the only way for the customer to consider you a true logistics expert business partner and not just a freight forwarder.

Author: Arlethe Hernández

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