1. Pre-COVID-19, the Agility Emerging Markets Logistics Index 2020 found 70% of those with operations in China were planning to stay put, despite global trade tensions and other headwinds. We wrote the article back in 2012, honestly, many of those same challenges are still major concerns to the supply chain now. Find a qualified carrier. The essential nature of logistics has been highlighted by the Coronavirus crisis, from getting personal protective equipment (PPE) to healthcare workers, to replenishing stocks in supermarkets. Companies are facing a wealth of “too much” challenges. In the meantime, a number of other answers have emerged, including: COVID-19 has turbocharged the consumer shift to online buying. Why Warehouse Logistics Pose Challenges Many of the logistical challenges in a warehouse have to do with organization. However, more integrations can result in more systems. People make technology useful.”, “We’ve found that the customers that have a high degree of digital supply chain already built in were able to flex a lot better and more quickly with us. People make technology useful.”. LTL could be half of a full shipment, a single pallet, or a single box. And a “China+1” strategy to spread supply chain risk is also potentially expensive. It’s enough to make an organization want to disregard data entirely. If you are currently experiencing any of the following setbacks, working with a third-party logistics (3PL) provider can help. From cart abandonment, poor carrier performance to many operating systems. Understanding logistics is important for every business, regardless of payroll size or annual revenue. However, with advances in data analytics, technology, and savvy logistical minds the options available to overcome these challenges have changed the game yet again. Unprecedented challenges demand unprecedented collaboration. These are as follows: There should be full transparency in orders and all stages from raw material stage to the final sale must be […] presents a unique logistics environment, and as a result, unique logistics challenges. By implementing these tips, however, you will create a sound logistics strategy that will help you pave the road to a solvent and successful future. It’s difficult to make improvements to your supply chain if you can’t see where the... Harness technology for good. When it comes to third-party logistics providers (3PLs), there are several top challenges affecting their supply chain logistics management. There is a need to offer more delivery options and improve internal efficiencies. Warehousing Challenges – E-commerce players in the Middle-East face numerous challenges related to the warehouse operations – like maintaining real-time inventory, quicker replenishment, lack of technology standards and so on. Ocean freight capacity is starting to bottom out and stabilize. 1. Use combined logistics services which will save your cost. Overcome the logistics obstacles. New technology Thank you for the sensible critique. 2. View Larger Image Nowadays, online retailers are replacing traditional stores for various perspectives, as eCommerce is turning into the favoured shopping method among purchasers. Multiple carrier handling is time-consuming.. Offering choice to customers is vital in a competitive eCommerce... 3. Exposing staff to dashboards of data aims to overcome the many touch-point complexities. Loads used to see two, three, or four touches before goods were in the hands of the end consumer. The biggest challenges of last mile logistics. Makers of tech products – laptops and headsets – saw demand soar as millions around the world left the office and began working from home for extended periods; Use of air charters for urgent, high-value cargo that would otherwise go aboard freighter aircraft or in the belly of widebody passenger flights; Conversion of empty passenger aircraft to “passenger-freighters” that can carry cargo in specially packed passenger cabins, in addition to belly cargo; Charter sharing and freight consolidation among forwarders or shippers that might normally be competitors; Alternative modes such as rail from China to Europe, then long-haul trucking across borders; Alternative airports, ports, and trucking routes where there is extra capacity. Cost, complexity and fluctuating currencies emerge as the major risk factors. According to a recent Royal Mail report; Cost, complexity and fluctuating currencies emerge as the major risk factors. Supply Chain Struggles: How to Overcome Major Logistics Challenges Make your supply chain visible. 1. Scurri places data at the forefront of empowering successful order fulfilment. Maybe the greatest challenge is to anticipate the risks in the future and have a plan to work past or around that yet unknown risk. 4 Big Logistics Challenges of COVID-19 - And How to Overcome Them. Among the solutions is alternative inventory storage: more warehousing close to point-of-origin or destination, conversion of stores into storage as distribution and fulfillment hubs, or strategic use of ocean freight as “floating storage” through careful timing of orders and deliveries. Chinese production is deeply integrated with inputs from and production in other Asian markets. It presents vast logistics challenges everywhere. There are no playbooks for most of them. But today, getting goods to consumers faster means seven, eight or nine touches. The aims were to define the current logistics environment in Australia, identify the existing logistics challenges and present different solutions to overcome them. Overcoming Last Mile Logistics Challenges January 11, 2016. It’s too difficult to manage. Logistics is a huge industry. If your facing issues with transporter change the transporter. Will the crisis alter global production and sourcing patterns? Thank you for the good writeup. Like many websites, Agility uses cookies to personalise your browsing experience. Air freight capacity also dropped, in large part because a significant portion of air cargo flies in the bellies of passenger flights, many of which were cancelled as passenger traffic dried up. Updated July 27, 2017 Highways still being the primary mode of transport carrying 65 percent of total goods as per NHDP, India and its road cargo transport heavily relies … By implementing these tips, however, you will create a sound logistics strategy that will help you pave the road to a solvent and successful future. This speeds up operations at the packing bench and decreases the room for error, resulting in invaluable time and cost savings. Our flexible rules environment allocates orders based on your delivery preferences. Will it prompt companies producing or sourcing in Asia to diversify by spreading production, or to adopt near-shoring or reshoring strategies? The aviation industry has come to a standstill. Logistics providers must use visibility software to ensure visibility and ease out the transportation process. There are signs some US manufacturers are looking at bringing production closer to home, mainly in Mexico. Our ‘Brexit-proofing’ feature automatically generates CN22s and CN23s for cross-border orders. The tourism industry does not know when things would normalise. While expanding overseas may seem daunting, eCommerce is driving global trade. In normal times, ocean freight is typically around 90% of global trade volume. 4 Big Logistics Challenges of COVID-19 – and How to Overcome Them. And at their heart are technology and people – and the tools, communications and data that link them. 2. Every challenge presents new risks. Business growth can often lead to unsuitable shipping processes. However, according to McKinsey & Company, labor costs only account for 18% of logistics problems. Another way to overcome this challenge is to opt for fuel-efficient vehicles. 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