7 Common Mistakes with Logistics and How to Avoid Them

7 Common Mistakes with Logistics and How to Avoid Them

Did you know that the United States logistics industry was worth more than $1.6 trillion in the year 2018? Logistics is vital for running a successful business and the latest logistics technology will help you make sure that you get everything you need in the right place and on time. Needless to say, mistakes with logistics will set your company back and frustrate your customers.

There are a number of mistakes that you need to avoid when you’re creating logistics systems for getting the resources that you need and sending out the products you create for your customers. This includes making sure that you have the right equipment for shipping and that you have supply chain security.

The good news is that you’ve come to the perfect place to learn about seven big mistakes that you need to avoid when it comes to logistics and supply chain. Keep reading this article to learn more.

1. Poor Forecasting

A huge part of logistics is forecasting the industry that you work within. While the essence of logistics is getting something from one place to another, there are so many other factors that you’ll need to consider. Odds are that cargo will go through a number of hubs and waypoints on its way to the final destination.

Each hub and waypoint that your cargo goes through has a cost associated with it and these costs fluctuate depending on the market and the economy. It is a mistake to overlook these fluctuations as they will build up in the blink of an eye and cost your business a small fortune.

2. Overstocking or Understocking

There is a sweet spot that you should try to maintain when it comes to your inventory for your business. If you’re purchasing too much inventory then you’ll find that you’re paying extra money for storage fees for everything that you’ve purchased.

There is also a big risk to understocking your inventory. It will result in you losing out on large amounts of revenue from sales that you lost because you didn’t have the supply to meet the demand of your customers.

It is important that you use the right calculations when determining how much inventory you need. Think about the lead time for your products and the safe level of inventory when trying to figure out how many products to keep on hand. You should also look at the number of open orders and backorders for your products when thinking about inventory.

3. Not Having Clear Return Policies

Another major logistics mistake that you need to avoid is not having a clear return policy for your products. The majority of consumers want to know your return policy upfront prior to purchasing any of your products. This is important as online shopping increases during the COVID-19 pandemic.

People don’t want to end up getting stuck with products that don’t fit or don’t solve the issues that they expected the products to fix. Having a clear and understandable return policy is vital to running a successful business with good logistics and supply chain management.

4. Using Manual Management Systems

Nowadays it is a massive mistake to rely on manual management systems when you’re handling logistics management. This paves the way for massive amounts of human error that will set your business back in a big way. Human memory and paper documents aren’t a great way to run a successful logistics business in the 21st century.

You’ll experience more mistakes if you avoid switching to a logistics software program and you’re more prone to shutdowns that will hold your business back from reaching its potential.

5. Using the Wrong Equipment for Shipping

Another important thing to avoid doing if you’re working in the logistics industry is using the wrong equipment for shipping and working with the wrong freight forwarder. It is important that you find a freight forwarder that is reliable and experienced within the logistics industry if you want the best results.

Make sure that the freight forwarder has the right equipment to meet all of your needs while staying within your logistics budget. If you hire the wrong freight forwarder and don’t have the right equipment then you’ll find yourself going over your budget in the blink of an eye.

6. Failure to Package Your Goods the Right Way

A huge part of logistics is making sure that your cargo gets from Point A to Point B in the shortest amount of time possible. One thing that tends to get overlooked in all of this is remembering to package the goods the right way so that they arrive intact at the final destination.

It is great that you get your cargo to the destination in a quick manner but there is no point if it doesn’t arrive in the condition that your customers expect. That will turn them away from your business and cause them to start working with your competition. Make sure that you’re packaging goods in a way that they arrive in perfect condition.

7. Failing to Follow Through on Promises

If you make promises to your customers then you better do everything within your power to come through on those promises. It is always better to undersell and overdeliver than vice versa. Don’t tell your customers what they want to hear just to appease them with no intentions of following through with your promises.

Think about the lead time of your products and how long it will take to fulfill the promises that you make to your customers. This will help you to prevent frustration and disappointment. Your customers would rather have honesty than false promises when doing business with you.

Now You’re Ready to Avoid These Mistakes With Logistics

For more helpful articles, make sure you check out our blog.

There are many mistakes with logistics that new companies tend to make and it is important that you learn from their mistakes when growing your business. Make sure that you follow through on your promises and that you’re using logistics software. You should also make sure that you have supply chain security and that you package your goods in the best way possible.

Internal Link – Newtimezone

Related posts

What other preparations are necessary prior to undergoing a Body Check Up?

Introduction: Undergoing a comprehensive body check up is an important step towards monitoring…
Read more


Read more

Care for Elderly Pets: What You Should Know

As your beloved pet ages, it is critical to provide extra care and attention to ensure that they…
Read more
Become a Trendsetter
Sign up for Davenport’s Daily Digest and get the best of Davenport, tailored for you.

Leave a Reply

Your email address will not be published. Required fields are marked *