Common Shipping and Logistics Mistakes
by Jillian Voege
January 30, 2018
Globalization is opening doors for products and services to be offered to more people. However, competition to capture those customers is fierce and, if you have physical products that require shipping, logistics mistakes can significantly hurt your customer base and revenue.
Inaccurate Cost Forecasting
Supply chains today consist of more than simply shipping a package from one place to another. The costs of various venues through which a package travels continuously fluctuate as various feast and famine events occur throughout the global operations system. Many companies fail to stay abreast of rate changes and guestimate costs based on outdated metrics.
In order to reduce expensive surprises, current adjustments in operations costs made by logistics vendors and hubs need to be monitored and adjusted on a regular basis. This will allow you to keep shipping expenses within manageable boundaries.
Bad Vendor Choices
Quality varies between businesses and if poor selections are made, problems can come up in your supply chain that can cause unexpected expenses and the loss of customers. It is essential to do the required research on vendors and route options and select those that are both within your budget and will enhance your supply chain.
Lack of New Technology
Modern technology is vital to remaining competitive in today's globalized world. Automation allows you to effectively monitor, track and move large numbers of orders both in the warehouse and throughout the supply chain. Not upgrading your facilities or select shipping vendors that don't use cutting-edge technology can quickly knock you out of the game.
Applying automated technology to your operations should be seen as an important investment that will eventually boost your bottom line.