Modern global economics depends heavily on logistics management to support commerce and guarantee the success of your company’s operations. The recent pandemic has presented logistics managers with a growing number of obstacles in developing and sustaining supply chain and logistics strategies. Though they were present before the pandemic, logistics managers now face additional difficulties due to the pandemic’s consequences.

1. LARRY SAVAGE JR EXPLAINS KEY
LOGISTICS
MANAGEMENT CHALLENGES.

2. Modern global economics depends heavily on logistics management to
support commerce and guarantee the success of your company’s
operations. The recent pandemic has presented logistics managers with a
growing number of obstacles in developing and sustaining supply chain
and logistics strategies. Though they were present before the pandemic,
logistics managers now face additional difficulties due to the pandemic’s
consequences.

4. So, in this article, Larry Savage Jr mentions the most common everyday
logistics management issues faced by managers. Don’t forget to read Larry
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5. KEY LOGISTICS MANAGEMENT
CHALLENGES FOR MANAGERS:
• Customer service
Logistics management involves delivering the appropriate product in the
right quantity to the appropriate location at the expected time. The desire
of customers to have complete visibility into the whereabouts of their
deliveries at all times during transit poses a serious problem for the logistics
sector. Right now, the shipment location of a customer is as linked as your
social network. The willingness of customers to pay extra for fast shipments
has declined in tandem with rising expectations. Approximately 64% of
customers are hesitant to pay extra for shipping that takes longer than two
days.

6. TRANSPORTATION COST CONTROL
Keeping your transportation budget under control presents a big logistical
problem for logistics managers. One of the main causes of transportation
budget worries is the high cost of fuel. Fuel surcharges will certainly be
pushed up this year, driving up transportation expenses for shippers
everywhere. Furthermore, increased diesel fuel costs in many places have
added fuel surcharges to freight rates. This also reversed a two-year pattern
in which falling fuel prices had a detrimental effect on truckers’ profits.

7. PLANNING AND RISK MANAGEMENT
Periodic evaluations and optimizations of every business area are required
to maintain maximum efficiency and effectiveness in Logistics. Changes are
implemented in reaction to market shifts brought about by things like the
introduction of new products, international sourcing, credit availability, and
intellectual property protection. Managers need to recognize and measure
these risks to control and minimize them.

8. SUPPLIER/PARTNER RELATIONSHIPS
Suppliers and partners must establish, understand, and adhere to mutually
agreed-upon criteria to better understand current performance and areas
for growth. A deficient supply chain and lost time result when a partner and
supplier use disparate communication methods.

9. GOVERNMENT AND ENVIRONMENTAL REGULATIONS
Carriers must abide by stringent federal, state, and local rules.
Environmental concerns, including state and local government-created anti-
idling and other emission reduction measures, in addition to federal laws,
have raised concerns that the costs of compliance may outweigh the
benefits.
The following challenges are altering due to the way business operations
are being conducted. Thus, keeping abreast of these developments and
implementing preventative actions to avoid problems is an indication of
effective logistics management.

10. FINAL THOUGHTS
If you are a manager or a company owner in the logistics sector, you can
expect these challenges in the near future as part of the process, so stay
updated to handle them. Also, read Larry Savage Jr Birmingham – Best
Strategies to Reduce Transportation Costs In Logistics to save your
operating costs.
Source Credit: https://larrysavagejr.wordpress.com/2024/03/21/larry-
savage-jr-explains-key-logistics-management-challenges/

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