Logistics issues : 9 exemples and how to avoid them

The globalization of trade, changes in consumption patterns and new customer requirements can constitute a performance lever for the world of logistics. The intensification of flows linked to these profound changes has an impact on logisticians in their activities and makes the threat of logistical problems even more serious.

These problems can appear at different stages of the supply chain. They can emerge whether it is during the transport of the goods on the ships until its arrival at the port or a problem can arise during the traction to the logistics warehouse.

But that's without counting on all the problems that may arise internally on the logistics platform. This is why a logistician such as XP LOG must be vigilant at each stage of the outsourcing process.

External problems

Many external problems can affect companies in their logistics.

Logistics Problem #1: Transportation Example

Today, transport is at the origin of international trade. However, transport costs or the assurance that a container will be delivered on time are never guaranteed. This represents a real problem for logisticians who try somehow to be delivered on time and to optimize their transport costs.

Since the COVID-19 crisis, some containers have been regularly blocked in or around ports, causing disruptions in supply chains and delivery times. There are various causes: ship delays, weather conditions, congestion at terminals, etc.

n°2: example related to costs

The cost of transport services is a common problem to which logisticians and logistics managers are accustomed. To optimize these costs, logistics companies will try to implement solutions such as grouping, the strategic choice of consumables and the strategic choice of pallets.

Optimizing costs is proving increasingly complex when we know that the prices of pallets and containers have almost doubled since the end of the health crisis. The same goes for the price of handling or services which since January 2022 have undergone two revaluations of the minimum wage, making the costs higher.

Logistic problem n°3: example related to damage (breakage, loss and theft)

Breakage, deterioration, loss or theft are common problems in the world of logistics.

This is why choosing the right packaging, palletizing method or even the number of layers of filming can be useful depending on the goods.

Regarding thefts or losses, they are not recurrent but we must not forget to take them into account to set up anti-vandalism techniques and parcel tracking. In this situation, it is necessary to consider crates with self-locking bottoms, black stretch film for pallets and above all tracking and tracing of packages guaranteeing more security.

Internal problems at the logistics warehouse

A logistics warehouse corresponds to a place whose main function is the storage and reception of different types of products while meeting strict requirements and rules.

Unloading, loading, handling, product control, storage organization, etc. All these activities can impact the proper functioning of logistics sites and constitute problems that can be significant.

Logistic problem n°1: example related to the lack of space

First of all, one of the main problems related to internal logistics concerns the lack of space in warehouses. Indeed, the warehouses are saturated and the logisticians cannot accept new customers and often suffer the situation when the activity of the customers increases. The way to counter this problem is to build new warehouses to accommodate new flows.

XP LOG has overcome this problem with the opening of a new 24,000 m2 warehouse in Fos-sur-Mer in the south of France (Bouches-du-Rhône).

Logistics problem n°2: example related to inventory management

Poor inventory management is often the cause of delays in delivery times. Whether at the distribution or production center, it is recommended:

- To have a delivery schedule

- To know the exact stock of a warehouse and its stock level

- Correctly consolidate the goods

- To scrupulously check all the documentation necessary for the shipment

- Quickly and safely load the goods into the truck.

In addition, some software allows the tracking of incoming and outgoing goods and ensures that inventory management errors are reduced. A WMS is a tool that automates and synchronizes actions on the references present in the warehouse (FIFO/FEFO type handling). It also helps to prevent stock shortages and therefore economic losses.

Logistic problem n°3: example related to prevention

Finally, clumsiness or errors in the handling of loads on site can be a problem for both the customer and the logistician. The products can be damaged, the handler can be injured.

In order to prevent risky situations, operators must be trained in the handling of loads and the use of machinery.

Other approaches are also possible, in particular thanks to logistics 4.0. This saves time and colossal costs with the automation of storage systems, robotization or even the use of artificial intelligence.

Conclusion

Thus, as you have seen, a non-exhaustive list of logistical problems can easily be drawn up. Logistics providers must take these issues into account and provide relevant solutions to respond effectively.

This is why, today XP LOG as a logistics player in Seine-Maritime and Bouches-du-Rhône does not hesitate to continually question itself and seek constant improvement levers to improve its performance, while optimizing its costs.

It makes the smooth running of supply chain activities its priority and places the customer at the heart of its concerns