Challenges in logistics are inevitable as we move our businesses forward. With the number of players in the supply chain, and the changing dynamics of competition, there is always room for improvement in any business process. Logistics challenges in today’s economy include increased inventory, delayed shipping, and excess inventory, slower growth in profit margins, higher costs for goods and services, and a lower consumer spending percentage. In this report, we will explore some of the challenges in logistics, and measures that can be taken to improve your business performance.
One of the primary challenges in logistics is managing raw materials, which have risen in cost relative to demand due to globalization and tighter constraints in many parts of the world. Another primary challenge in logistics is meeting the increasingly complex and demanding global supply chain management needs. The supply chain management concept is used to organize and manage the flow of raw materials, finished products, and services between suppliers and buyers. Improved supply chain management is required to increase operational efficiencies, shorten cycle times, and reduce inventory turnover.
One way to improve the control and management of your logistics operations is through better planning.