Major Challenges Faced in Logistics Management

Is logistics management taking most of your time? If you have been wondering if you're selling products or just delivering them, it's your que to look into third party logistics (3PL) solutions. 3PL aids online retailers, small business, business-to-business dealers, etc. in managing their supply chain. Some of the support services provided by a 3PL company to its partner companies is order fulfillment, shipping, warehousing and reverse shipments. Moreover, handling logistics may add huge overhead costs to your business. If you're new to the business, you might want to know how to make your logistics efficient.

MAJOR PROBLEMS OF LOGISTICS

Starting right at the operational level, logistics management tends to present problem in the following categories consistently:

• >> Tracking: Companies without tech support for logistics management tend to repeat monotonous tracking routes which may even include calling up shipping personnel for every update. These tasks can become tedious without much efficiency in deliveries.
• >> Freight: For companies, shipping out individual orders or delivering to areas with lower customer bases and market shares can add huge overhead costs. Customers may not always be happy paying the extra shipping costs for their orders.
• >> Customer Support: Don't be mistaken! Delivery is not the last step of your operational cycle, it's providing your customers with after-sale support. Logistics industry is majorly lacking in reverse shipment support, also known as, Return-to-Origin (RTO)/ Non-Delivery Report (NDR, a report that tracks undelivered packages and the reason for failure). Being able to solve your customers' after-sale issues leads to a higher customer satisfaction and builds brand loyalty.
• >> Weight Discrepancies: Don't be surprised if your regular courier partner refuses to deliver under or over a certain weight of packages. Logistics companies focus on how to optimize their shipping transportation and costs and might refuse to deliver packages that don't weigh over their minimum specified weight or weigh more than their specifications.

WHAT'S 3PL AND HOW DOES IT WORK

Third-party logistics (3PL) providers are what you would call a crucial link holding up the supply chain. Being an outsourcing service provider, 3PL oversees all or a sizable portion of a company's logistical needs and handles transportation, location, storage, etc. Alternatively, a third-party logistics provider handles the distribution and fulfillment needs of a business.

BENEFITS OF OUTSOURCING LOGISTICS TO 3PL COMPANIES

Outsourcing logistics to a third party can help businesses scaling from small sizes to huge e-commerce and retail stores gain an overall market advantage. Some of these benefits are mentioned below:-

Cost Reduction: Outsourcing to a third-party logistics provider to handle logistics tasks like packaging, warehousing, fulfillment, and distribution results in cost savings because there is no need to maintain a company warehouse or employ people to oversee supply chain activities.

Core Operations: By outsourcing your supply chain requirements to a professional third party firm, you hit two targets with the same stone. You can focus more on your core operations without having your attention divided between last mile deliveries and your company’s core competencies.

Wider Customer and Market Reach: 3PL are specialized professionals in their fields. Hence, they have a bigger presence and connections with the market and the industry. Working with these outsourcing firms lets your business reach new markets and customers.

HOW LORRIGO ASSISTS IN SOLVING LAST-MILE LOGISTICS PROBLEMS

Being a third-party logistics company, we understand your logistics woes! We have put in the hours to understand your needs and issues and how to solve them under one single solution. Our tech-based aggregator app is a specifically designed software to cater to the major aforementioned customer needs. Let’s take a deeper look at how we solve your logistics problems:

• >> Platform Fee: With us, you don't pay for leveraging a platform for managing your supply chains and tracking your orders. Our aggregator platform is included as part of your partnership with us. Additionally, our platform was built after a thorough analysis of the market needs and is always improving with newer insights.
• >> No Weight Discrepancies: We don't hold out on you against any package weight. We don't have a minimum or maximum weight restriction. As long as you want it delivered, we will deliver it!
• >> Freight: Our policy is to provide you with the best transportation services at affordable, competitive prices. You can rest assured that lower freight costs doesn't mean poor service.On the contrary, its efficient business!
• >> Customer Support: We provide live tracking facilities to our clients and if you still need more assistance, we're just a phone call away! From placing orders, choosing the best suited delivery partner to timely last-mile delivery, we are with you all the way.
• >> Easy RTOs: Finally, comes the problem of reverse shipments. We make sure that you can easily provide your customers with after-sale benefits. If the packages are not up to the customers' mark, they can return it without any hassles.