5 common mistakes made in logistics by small business

When you work in a small corporate environment the decisions you make are more important than putting first butter and then jam on your toast. It can be detrimental to both the management and logistics personnel. By going the extra mile to optimize the supply chain, the most successful business dazzle consumers with innovation. Beautiful packaging, fast delivery and other capabilities that define exceptional online shopping experiences, and this while avoiding mistakes. It isn’t always as easy as it sounds to optimize your organization’s logistics. To do it, here’re some of the common logistics mistakes you’ll need to avoid.

*Article initially published on Medium.com 18/11/2019

1. Don’t take automation in account in the workplace and everyday life

Automation is everywhere. It’s impacting our day-to-day lives, usually, in ways we barely notice.

“Automation is going to become far more widespread as industries continue to adopt technology and try to find ways to save time, money and effort.”

Today in logistics, there’s a lack of automation. It’s difficult to keep track of all the orders and shipments if you don’t have adequate software to back it up.

Every business should rely on appropriate technology resources. If they don’t do that they could face several problems, such as inconsistencies, errors, delays, and losses.

Using technology allows you to monitor each stage of the production line, reduce human force and errors, as well as optimize your operational flow through the automation of tasks. Of course, these benefits will on a long term translate into a competitive advantage and data accuracy. Which will then reduce the costs and increase productivity?

Logistics doesn’t allow errors in the process. Customers want to know when they can expect their orders. This is why we need to implement specialized software for specific needs. This comes with additional costs and maintenance costs but it will help you avoid a large number of errors. You’ll be able to build more stable and consistent relations with your (potential) clients.

2. Bad executive management

Having a non-logistics person in charge of your logistics operations is asking for trouble. Why? Because of a lack of knowledge and competences. The logistics employees should be properly trained. If not, they will likely be lost in the different aspects of the job: from scheduling dates to the paperwork that comes with it.

Even if you’re a small company with a tighter budget, you need to be sure that your people know what they’re doing. A little slip up can’t go unnoticed. You don’t have enough money to cover these kind of mistakes. Your role as managing director should be to carefully develop the staff support system. This involves cooperation instead of individualization.

3. Miscalculating costs

The only thing you simply can’t afford is miscalculated costs. It involves revenue losses and that’s not good for the company. If you don’t have a a well-developed network, you should develop a longstanding relationship with a reliable delivery company. They have all the expertise you’ll need.

4. Not following the market

In a business, you always have to pay attention to your competitors, partners and customers’ activities. What are they working on? Be open to new ideas as they come along and follow the logistics and shipping market trends as much as possible. The world of shipping and logistics is changing constantly. Newer, faster and better ways of logistics management are coming. Stay tuned!

Never forget to stay true to your company’s roots.

5. Not using Key Performance Indicators

Nowadays some managers only worry about an in-depth analyses of their company’s performance metrics when the results aren’t achieved at the end of the expected period. Demands in the logistics industry are constantly changing so you should be aware of your performance metrics.

Therefore, Key Performance Indicators (KPIs) should be a part of your daily strategy. This way you should be able to monitor your business’ performance, productivity, sales, and the quality of your services. When measuring the metrics of your KPI’s, you’ll be able to identify a lot of elements that will impact your business. You can prepare your business in advance for the lower demand seasons and boost the productivity of your company.

Conclusion

In a small business environment, you’ll always need some room for error. Especially when it comes to handling logistics. However, working on minimalizing that room for error is the constant job of every company.

Learn from mistakes in logistics. Your own mistakes and those of others (competitors, partners, customers). In every experience there’s something to learn, so keep your eyes peeled for development opportunities.

Questions?

We hope we succeed in giving you more insights on this subject. If you have any questions feel free to reach our Shippr team at “hello@shippr.be”. You can also connect with the team on Facebook, Instagram, LinkedIn!

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