CUT, COPY, AND WASTE
4 common mistakes that logistics companies are replicating
Market competition is the customer’s best friend. You don’t need a degree in Economics to understand why. More competition means the best products available at the best prices. The customer goes home happy, and in business, that’s what matters in the end, right? But there’s two side to every coin. And the other side tells a tale of a cut-throat race, where even the smallest of decisions can make giants out of companies, or bring them down.
That’s exactly what the logistics & freight delivery industry is going through. The high-pressure race is forcing companies to respond swiftly to market changes. So, if one company makes a foray in a new direction, the others follow suit, just to keep pace. No wonder, the logistics market is becoming a hotbed for mistakes that keep on sprouting from company to company. What’s the way out? First step — identifying all these mistakes.
- Rushing the Overseas Call
Who doesn’t want their parcel delivery service 6business to go beyond borders? But too often, logistics & international freight companies rush into it, not wanting to be left behind. The result? Unpolished custom guidelines that lead to incorrect costings. Too often, workers are not able to specify package details and it leads to overcharging.
2. Cutting Costs in Transportation
When things are going bad in logistics, transportation is the first vertical that gets cut. It gives instant relief, but it is kind of going for the proverbial ‘low hanging fruit’. Transportation is the backbone of your parcel delivery company, and trying to squeeze too much out of it always gives a backlash. Plus, it draws attention away from the real problem that exists in the main processes.
3. Overestimating Warehouse Capacity
The classic mistake — holding a large inventory to hasten dispatch rate. As simple it may sound, this is the #1 reason why parcel delivery companies run down to the ground. Your warehouse needs to have buffer space to accommodate failed deliveries and peak seasons. Most companies do keep a buffer, but not a sizeable one.
4. Going paperless, too soon
Paperless here means moving out of legacy systems too fast. True, digital is where the future is. But are your employees ready to make the transition, just as fast? Too often, the training & development side is overlooked, and that leads to one big mess.
At these times, it’s always great to have a wealth of experience to bank upon. That’s exactly what a partnership with DTDC brings to the table. Driven by decades’ worth of logistical experience, DTDC makes sure that mistakes are just another word in the dictionary!
