Seven challenges of logistics. Are you familiar with them?

The world of logistics is constantly changing. Sustainability, increasingly critical customers, a tight labour market and changes to regulations are just some of the challenges companies face. Read on to find out about seven challenges encountered in the logistics sector. Have you experienced any of these challenges?

Challenge 1: Sustainability
Sustainability is becoming an increasingly important topic for businesses, in particular those in the agricultural sector. More traffic means more air and noise pollution, but transporting goods plays a crucial role in the current economy. As a company, what role can you play in reducing the adverse consequences for the environment? Here are a few tips:

• Make your packaging more sustainable.
• Make the best possible use of space by combining orders.
• Only turn on the lighting and heating when it is needed.

Challenge 2: The customer is always right
Nowadays, the status quo for many companies is that "the customer is always right". In 2020, ordering products one day and receiving them the next is no longer unusual and is now considered the norm. Increasingly tough competition means that companies need to dedicate significant attention to this area in order to stay ahead of their rivals. Research shows that when customers are given accurate information and offered competitive prices and terms and conditions, they are more open to establishing a long-term working relationship with your company. So how can you achieve that? Here are a few tips:

• Communicate with your customer on a personal level.
• Involve your customers in decision-making.
• Organise events and/or workshops for your customers. Are you thinking of organising an event? If so, click here to take a look at our top tips.

We also recommend reading this article: What is the best way to communicate with your customers? 3 tips for clear communication.

Challenge 3: Returns
The returns process is not something that most companies look forward to. It often results in extra costs and processes that the company would prefer not to have to deal with. Do you want to make sure that your customers have a good experience with your company and receive exactly the right service? If so, make your returns policy as straightforward as possible.

Wondering how to return items to Kramp? You can read about Kramp's returns policy here.

Challenge 4: Shipping costs
Every delivery incurs shipping costs, but who pays the bill? Customers see it as a bonus when they do not have to pay shipping costs, making them more likely to order again soon. The downside for the company is that the shipping costs can sometimes be quite high. Some companies choose to offer free shipping only on orders above a certain amount. You can also provide premium valued added services like in-night and before 12pm delivery to make a customer pay for enhanced services when they need them.

Challenge 5: The tight labour market
Finding suitable logistic employees is, and will continue to be, a challenge. A strong economy means that, as a company, you want to constantly increase your customer base. However, orders cannot be delivered without drivers. Are you struggling to find drivers? Try hiring an external company to help.

Challenge 6: Changes to regulations
Regulations surrounding logistics differ from country to country. Do you do a lot of business with other countries? If so, you need to take into account the different regulations in each country. It is also important to keep in mind that these regulations may change. Here are a few tips to help you stay up-to-date with the current regulations:

• Keep an eye on general government websites. These websites are the most reliable and provide contact details for helpdesks, should you need them.
• In terms of European legislation regarding logistics, this website is a reliable source.

Challenge 7: Problems with deliveries
There are many reasons why a delivery might not go to plan. See below for a few examples. As a company, how would you deal with them?

• Customer credit restrictions.
• Some products are out of stock.
• The customer would like to receive the order at a later date.
• The carrier is having problems with the delivery (if you work with an external company).
• Traffic meant that meeting the agreed delivery time was not possible.
• Delivery was not possible due to problems on the customer side.
• Damage to the packaging.
• Short deliveries.

Do you often run into problems when delivering products? In many cases, difficulties are caused by circumstances that are unrelated to your own logistics process. Try to make the process as transparent as possible and communicate clearly with your customers to foster understanding.

Did you know that…
The earlier in the day that you order products from Kramp, the sooner we can get to work on your order and on making sure that it arrives safely and on time. Are you planning to submit multiple orders in one day? No problem. Our system will combine your individual orders into a single order so that, where possible, you will receive just one delivery.

In summary, logistics is a complex process. It is vital to keep moving forwards and to stay up-to-date with the latest trends, developments and regulations, as logistics can make a big difference when it comes to staying ahead of the competition.