Logistics operations, in recent years, have moved to the forefront of discussions in the Business World, and has led to an increase in the number of companies–including Terminal Africa Inc.--willing to offer the services to prospective customers. The increase in demand has led to the average retailer spending at least 10 - 15% of sales cost on logistics operations–storage and transportation–to get goods to its final destination. However, all is not doom and gloom because the expenses can be reduced or halved without compromising on customers' experience and satisfaction. Let's go on a journey of identifying the problems of Logistics Efficiency and proffering solutions.
What is Logistics Efficiency?
Logistics Efficiency refers to the effectiveness of a company's operations and the use of resources to achieve its objectives. It is also a measure of how the organization manages its logistics operations.
Known Challenges of Logistics
1. Government Regulations
Shipping orders between countries, states or cities is often difficult due to the never-ending changes to taxes, permits, customs tariffs.
Dealing with bureaucratic red-tapes such as these is one challenge that logistics companies such as Terminal Africa Inc. encounter from time-to-time.
2. Customers Expectations
Nowadays, customers expect 24-48 hr delivery of their products which is a customer satisfaction/fulfilment expectation brought to the fore by the likes of Terminal Africa. To gain the trust of customers and an advantage over competitors, you need to run a pumped-up logistics operations.
3. Rising Costs
Logistics costs encompass everything from fuel insurance, depreciation, warehousing, taxes and manpower expenses related to storage and transportation of goods. These costs have been on the rise in the past few years and has had a negative impact on fast and reliable shipping which in turn affects businesses.
4. Supply Chain Visibility
Bigger Companies are at a higher risk of logistics issues springing up regularly especially if there is no serious inventory visibility. To ensure you don't encounter negative surprises, put real-time inventory mechanisms in place by engaging the services of tech-enabled logistics companies–including Terminal Africa Inc.--to get things done.