Logistics management is the process of governing the functions of the supply chain. The typical activities of logistics management include managing the incoming and outgoing transportation, warehousing, fleet management, order fulfillment, material handling, inventory management, logistics network design, demand/supply management, 3PL or third party logistics management service providers. However, there are many challenges that are faced in the process of logistics management. Some of these are compiled below.
- Product complexity: Almost all the firms have numerous SKUs. It becomes a challenge for logistic company to understand and sort SKUs in proper order. However, there are some companies that have built up restricted processes ready in order to manage the growth of SKUs.
- Obsolete and slow moving inventory: Often, the marketers are reluctant to lower the price of cleaning out the inventory, although the old inventory is never going to be of any use.
- No strategy: It is very important to have a proper strategy for logistics management. Determine the present as well as future requirements of the customers. Find out the means to fulfill those requirements and what are the competencies that the company needs to meet the demands of its customers.
- Demand & Supply Matching: Proper logistic system should be able to manage Demand and Supply changes. There can be challenges in terms of production volumes and demand of a product.
- Problems in physical network: It should be made certain that the firm inquires its configuration of physical network under a broad array of the future prices of fuel. However, this is one of the several elements that affect the network design.
- Outsourcing problems: There are a lot of outsourcing challenges that are posed due to globalization such as lengthy supply lines, geopolitical risks, exchange rates and incredibly fickle costs of fuel.
These are some of the most important challenges that are faced in the process of logistics management and that should be resolved.
McLane Logistic Technology can empower your business with state-of-the-art logistic management system, designed to take huge and complex loads and to keep your logistic management process efficient and trouble free. For more information Contact Business Specialist at McLane Logistic Technology.
