Why your Logistics Business is Failing (And what to Do about it)

Why your Logistics Business is Failing And what to Do about it

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Logistics businesses are in the midst of challenging times. On the one hand, we’re seeing massive disruption in supply chains while, on the other, we’re witnessing tremendous growth in demand.

In this post, we take a look at some of the reasons your logistics business is failing, and what you can do to turn the situation around.

You Don’t Have Any Control Over Drivers

Not having any control over drivers is risky in the transport business. Firms that can’t monitor what their employees or contractors are doing incur additional costs and don’t run as efficiently. Drivers are prone to taking detours, traveling along the wrong routes, or driving vehicles less efficiently than they should.

Fortunately, there are all sorts of ways to monitor your drivers these days. In-vehicle devices show you where drivers are in real-time, how they are driving their trucks, and whether they are taking detours. Devices also let you communicate with drivers in real time, telling them what they should do next or advising them of traffic situations.

You Don’t Keep Quality Warehouse Partners

Logistics companies rely on their warehouses to provide storage space for their inventory. Unfortunately, most firms take a reactive approach to warehouse maintenance. They get professionals to carry out the construction but then fail to do any proper maintenance, assuming that the facilities will last forever.

Of course, the reality is different. Warehouses don’t survive indefinitely. They require replacement parts and upgrades.

That’s why industry professionals, such as Butler Building Parts, recommend that logistics companies work with experienced warehouse partners. These firms can replace old warehouse parts when they come to the end of their lives and replace them with new ones at a low cost. What’s more, they can provide ongoing services, enabling your warehouse to remain ship-shape, no matter what.

You Don’t Have Enough Experience

Lack of experience is another major issue in the logistics industry. Founders often start companies without building management experience elsewhere, leading to higher-than-normal costs and poor customer service.

The trick is to research the challenges that you will face or work with a mentor first. This way, you can anticipate problems and snuff them out before they affect your business. Alternatively, give yourself a year or two of experience in the field before buying any trucks of your own.

You’re Not Planning For The Truckload

Most logistics companies plan for the truckload in one direction, but not the other. As such, many trucks remain empty on their return journeys, which costs a small fortune.

The trick here is to establish depots across the country that let you plan two-way truckloads for all your orders. Trucks should never be more than a few miles from a depot where you can put them to use.

Don’t be afraid to leverage the trucking depot network in your region if you don’t have your own. Pay facilities providers to rent space while you load trucks from local distribution centers. This way, you can avoid return journey losses and keep drivers productive.

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