Major Management Issues In Logistics Industry

E-commerce and internet has been successful to make the logistics industry a success. New players keep coming in and quit every single day. Hence, this industry requires broad planning and systematic management. Challenges have to be diarized well in time with appropriate solutions for different aspects of the company. Logistics is a tricky business that requires time to adapt, a sudden change of plan to shift to logistics is generally not recommended. 

Two common challenges associated with courier services are: 

Managing Manual Services: If there is a lack of investment and capital in a new company, it will have to use manual services for some time. The records have to be maintained into the registers and delivery books. This manual system of data maintenance is very hazardous as it damages the co-ordination between various branches of the service. The written documentation weakens the audit trails which are very dangerous for the company in the long run. This may not just give rise to management issues but also may bring up multiple legal problems for the firm. 

Solution: It is not easy to become the best delivery company in India until the right technology is brought into play. Many systems have to be automated but the most important one is the tracking service. A few years back until the strong evolution of internet, this was done through automated text messaging. If a company is facing low budget crisis, text message updates work like a charm to record management and coordinated processing.  

Personnel management: This is one of the biggest administrative headaches in the courier industry. To manage a large workforce simultaneously seems like an impossible job. While making deliveries and pick-ups in cities there are many factors which hamper their speed. Traffic jams, parking, and identifying correct delivery spot or vehicle breakdown have to be taken into consideration. In situations like sick leaves or emergency leaves of employees, finding a replacement who knows the neighborhood is also tough. 

Solution: This can be achieved only by cooperation and loyalty of the staff. The best way to motivate your staff is to keep commission based payment system that will encourage the delivery people to be more accurate and punctual. You can also take help of air cargo system to keep your services agile. Also, the company always has to prepare with backup staff that can provide their services in any sort of emergency.  

It is vital to address these two tips to be successful in logistics. For example, express delivery service companies like TCI Express have developed automated systems and a flawless workforce management system. If you’re planning to dive into logistics be sure to study the industry landscape thoroughly and address key issues well in advance.

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