Logistics is one of the most essential elements of running a business. It’s also one of the aspects that its hardest to get right as there are so many moving parts involved. The good news is you can find out about the most common logistic mistakes businesses make, and how to avoid them below.
Wrong sized warehouse
Warehouses are always one of the most vital aspects of a logistic system, but one that is too big or too small can seriously hinder your ability to operate effectively. A warehouse that is too big runs the risk of holding space that goes unused, space that you’ll be paying for. Conversely, the problem with a warehouse that is too small is that it may not have enough space for the volume of stock you need to carry. This means you run the risk of running out of items that are in demand with your customers and making them wait longer for delivery.
Not maintaining your equipment and vehicles
Logistics heavily relies on the use of heavy equipment and vehicles, and one of the biggest mistakes that businesses make is to not properly maintain these items. Of course, while you are maintaining an item it is out of service, and this can seem counter-productive. However, proactive maintenance is always much better than reactive as schedules can be planned around it, and so downtime is minimized.
Of course, for equipment maintenance to be successful, you need to make sure you have the proper components on hand. This means investing in items like this hydraulic pump, as well as finding a good company that can offer you information on how to fit in. Only then will you be able to minimize the risk of breakdowns that could bring your entire logistics operation to its knees.
Overspending on packaging
Now, I’m not saying that packaging isn’t important when it comes to your business. After all, it needs to represent your brand, as well as protect your product while it’s being stored, and transported. Also in today’s market packaging needs to be eco-friendly as well.
However, like many of the other aspects of logistics packing cost is a delicate chance to strike. This is because if you pay too much for your packaging per unit you can easily increase the cost of your overheads and impact your profit margin.
With that in mind, taking the time to ensure that the packaging solutions you use tick all your boxes including cost is crucial, or you could easily find yourself out of pocket.
Not leveraging IT to improve your logistics
If you are not using technology in your logistics then you are missing out. This is because there are so many ways that the right tech can save you money, and make your logistic operations more effective. For example, the right software customized specifically to the needs of your business means you can automate many of the more repetitive tasks, at once making them more accurate and efficient. Similarly, technology can be used in its physical form to improve your business’s logistic capabilities including picking, packing, and loading of vehicles.