When business owners need to move stuff, they usually focus on the delight of the customer and the quality of the product. But what about when things go wrong? How can business owners improve their chances of success of getting goods delivered everytime!
Logistics involves a lot more than meets the eye, so it’s not surprising business owners are often unaware of the pitfalls (of which there are loads of).
Entrepreneurs have a world of things on their minds. From Facebook, Pinterest and Google ads, to SEO, Website, Sales & Marketing strategies to operations and customer service, the list is endless! In other words, not only do we understand how mistakes can happen we expect it.
Therefore, we have put together some of the pitfalls in logistics and shipping with our 5 common mistakes list.
5 Common Mistakes
Due to the fast paced nature of logistics, where cut off times are fixed, promises are made and processes can be time consuming, the use of the old ”Guestimate” creeps in. ”PHEW’‘, the warehousing team say, ”that was a close one!”…..”We just got those last pallets out.” 2 weeks later the impact is seen….unexpected shipping surcharges, delays, unhappy customer the list goes on….The conflict of daily operations and the quality control strike again!
Like most things in this century, automation and technology play a huge part, Logistics is no different. Royal Mail invested over £1b in new technology in recent years to improve efficiency, quality and costs. Whilst the scale is different, the impact is relative, less automation in a warehouse increases lead times, labour costs and the chances of quality defects. Not to mention the restriction on scaling up when customers suddenly need higher volumes than ”the production plan” – ”another late night for us in the warehouse then guys!”
We’re going International! Everyones excited, ”get the deal done and send it…what about shipping…its the same just costs a little more”…Oh yes, these can be fatal assumptions! The world of international Freight is full of country specific rules, taxes, incoterms and surcharges that can quickly make shipping abroad a loss maker. DO YOUR HOMEWORK!
It’s understandable that manufacturers and retailers will use past data to predict future costs, but be wary of this. For example, fuel is a major contributor to the logistics costs, as most people are aware the price of oil can be volatile. Not to mention regulation such as ULEZ, CAZ and driver shortages, pushing the cost to serve upwards.
It’s tempting to offer next day delivery as standard, but as we discussed lots can go wrong. It’s unlikely speed of delivery is your USP. More likely, its your product, next day delivery is more expensive and has just the same chance of delay or failure as a cheaper economy solution, in fact quite often, where operations allow, the cheaper service will be combined with the next day goods to help with productivity in the network! So you get the next day service for economy prices….
Meanwhile, for those who want support now with Logistical challenges you can call us on 03330 150 330 for an informal discussion. For those who need a specific time, you can schedule a virtual meeting with one of our Logistics experts here.
On the other hand, feel free to browse our website for more interesting information about all things logistics.