Problems in Corporate Logistics

HUNTINGTON, N.Y. - July 15, 2013 - PRLog -- When it comes to corporate logistics there have always been issues to overcome. Getting a client’s product from one place to another in a timely manner has always been a challenging situation, but is only one of several problems you may encounter. Here are a few of the top issues you may encounter with corporate logistics.

Cost

Over the past few years a poor economy and rising oil costs have taken their toll on just about every aspect of business, but especially logistics. You see, whether you are talking about produce or computer chips the majority of consumer and corporate goods are moved by trucks. Trucks, as you well know, require fuel which means the cost of transporting goods has steadily risen over the last few years. Unfortunately, these costs have largely been passed to the consumer resulting in fewer purchases and a need for higher wages. Around and around the cycle goes, putting logistics in a near constant state of rising prices.

Damages

One aspect of corporate logistics that causes issues is damages. Thankfully, this is the one area of logistics that can be addressed more easily than rising fuel costs. Accidents will inevitably occur but you can take steps to ensure that your losses are minimal. For starters it is important to discover the cause of your damages. Was your product improperly packaged for shipping or was damage incurred due to human negligence? When damages are extremely costly, many businesses will seek out automated warehousing companies as they tend to have fewer damage issues.

Theft

Unfortunately theft is a very real part of business and products are at their most vulnerable during the shipping process. As you consider which corporate logistics or commercial distribution company to use you will want to discuss their experience with losses due to theft. There are things a logistics company can do to reduce the risk of theft during all stages of the shipping process.

Shortages

During the recent economic downturn many small corporate distribution companies have gone out of business. Rising costs of fuel, tires and even simple repairs have been too much for the company and many have sold off their equipment and closed up shop. This has resulted in a shortage, both in trucks and drivers. Add to this the retiring baby boomers and you can see how corporate logistics could face some serious problems in the next few years. When determining which company you will use it is a good idea to look at their history in the business as well as the number of trucks and drivers they currently employ. A logistics company that has been in business for many years or who has incorporated things like warehousing, moving services and more are more likely to offer on time and accurate service.

Conclusion

The world of corporate logistics, commercial warehousing and just business is changing and the companies that hope to compete are going to have to change as well. It is very important that today’s corporations take the time to weigh costs of corporate logistics against the importance of good service and strike a middle ground where profits are still good. It may not be an easy task, but it is doable.


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