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...Management is Key

of Success...

Challenges in Logistics Management

Challenges in Logistics Management
Challenges in logistics management System
  • Fuel Costs: One of the highest costs contributing to the ‘cutting transportation cost’ concern is fuel prices.
  • Business Process Improvement: Not-with-standing the need for new technology, which we discuss in number eight on this list, it has become an increasing challenge for the logistics industry to stay on top of new advances in business processes. Taking advantage of these new opportunities sounds enticing but adoption and on boarding can be overwhelming.
  • Improved Customer Service: Customers want full transparency into where their delivery is at all times.
  • Economy
  • Driver Shortage & Retention: Hiring and retention remain an issue despite the lower demand mentioned above
  • Government Regulations: Carriers face significant compliance regulations imposed by federal, state and local authorities.
  • Environmental Issues
  • Technology Strategy & Implementation: While the industry understands and supports many of the benefits of these technologies, some questions remain as to how they will pay for it and who will help implement the improvements

An Overview of The Logistics Management System

Logistics management is a part of supply chain management that plans, implements, and controls the efficiency of the forward and reverse flow and storage of products, services, and connected information between the source and the point of consumption so as to fulfill customer's needs. Logistics management activities typically include inbound and outbound transportation management, warehousing or storage, materials handling, order fulfillment, logistics network design, inventory control, supply/demand planning and management of third-party logistics services providers.

Good logistics management ensures that products are shipped in the most economical, safe, efficient and timely manner. This results in cost savings for the company and more satisfied customers. In contrast, poor logistics management can result in damaged or delayed shipments, which can then lead to dissatisfied customers, returns and scrapped products. The consequences of these problems include higher costs and customer relation problems.

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Transport Management Systems Benefit Third Party Logistics (3PL) Service Providers

Advanced TMS System
This system helps logistician and trasnporter to optimizes dispatching system

An effective and good transportation system is one of the main things required for efficient logistics management. Although many companies prefer their own team for supply chain management and logistics, according to research it is seen that around 80% of the companies chose third-party logistics service providers for logistics management. This is because third-party logistics providers usually have a huge and interlinked network, which has a competitive advantage over in-house supply chains.

Third-party logistics also help the organization by saving time, effort and money involved in maintaining the in-house logistics process. The transport management system helps the third party logistics to refine their service and improve their efficiency. One of the main features by which TMS solutions help 3PL are order and data management.

Opting for the Right Logistics Management Software

Logistics is highly important in today’s competitive world. The success of an enterprise largely depends on its internal efficiency and the extent to which it can delight its customers. A well-functioned supply chain and seamless logistics are essential and this by and largely depends on using the right logistics management software.

For selecting the right logistic system, one should keep the following points in mind:

  • It should have the multi-client architecture to support more than one customer.
  • Efficient costing and invoicing control
  • Real-time tracking system
  • Authenticate data and report management

Transport Blog Post