5 logistics challenges & how to overcome them

May 21, 2023

The COVID-19 pandemic brought major logistics challenges to the changing business landscape. Major logistical issues can set back an entire business and supply chain management-from warehouse management errors to rising fleet maintenance costs.

Thus, it’s vital to ensure the smooth flow of goods with seamless transportation management.

In this article, we’ll cover ten challenges the logistics industry faces. And we’ll cover each solution that uses modern technology and freight management solutions.

Challenges and solutions in the logistics industry

Companies can optimise their logistics processes by realising and tackling supply chain challenges. Thus, fulfilling customer expectations and gaining the upper hand in a competitive industry.

Let’s look at some of the biggest challenges affecting logistics businesses and how you can solve them:

Challenge: Labour shortages

With 1 out of every 3 people buying online, consumer demand is at an all-time high. But, labour shortages complicate the situation, especially during peak season.

Most professional drivers are nearing retirement, the average age being 47. And companies are finding it more difficult to hire young people. Most of them refuse to work in poor conditions despite an increase in annual salaries.

Since companies rely on in-person processes, they must move forward with an employee-first mindset.

Solution: Improve overall driver experience

Automate manual tasks. Reduce repetitive work by digitising processes. In this way, you can improve driver response time and workplace satisfaction.

Well-trained drivers are a critical asset to logistics operations. And improving their work environment will reduce delivery delays and help attract more applicants.

Challenge: Regulation changes

The logistics and the supply chain industry in politics equal unpredictable regulation changes. This results in compliance issues and higher costs for shippers and logistics providers.

Whether it’s a direct effect or more logistics challenges down the line. Making proactive decisions based on the foreseeable future can help companies stay ahead.

Solution: Stay up to date on industry news

Watch for any political or industry news stories. This helps teams expect potential challenges. Also, add regulatory change to your standard processes and training material.

Challenge: Lack of freight visibility

Tracking shipments and knowing their whereabouts is critical. Keeping a close watch on your freights lets you predict potential delays.

But this can be challenging due to disparate systems, lack of integration, and fragmented communication.

Solution: Implement technology solutions

Delays can occur for several reasons, such as human errors and weather conditions. Yet, you can gain vast visibility by using technology.

This lets you monitor logistics networks and unblock any delays as soon as you see them.

Challenge: Faulty last-mile delivery routes

The most crucial part of the logistical process is the final leg of the delivery. One faulty mishap, and you’ll have an unfulfilled shipment.

Thus, strategising your routes to achieve multiple deliveries is the ultimate solution. This reduces the number of hours and kilometres to every day’s deliveries.

Solution: Plan strategic routes

One of the easiest methods is to use route optimization software. This saves you operational costs for last-mile delivery.

Additionally, route optimization will speed up delivery and raise customer satisfaction.

Challenge: Rising fuel prices

A prime logistical challenge is the volatile rise in diesel fuel prices. Such effects can impact freight rates, the shipper, and the profit of the shipper.

This domino effect is inevitable. With higher petrol prices come costly shipping costs.

Solution: Work with a freight forwarding company

Outsource distribution and fulfilment to a freight forwarding company. The more shipments you can send at once, the more time and money you’ll save.

It’s important to note that same-day delivery is a popular choice for consumers. In fact, 41% of consumers prefer same-day delivery.

Thus, consolidating shipments with freight forwarding will prevent major delays. At the same time, you’ll increase customer happiness.

How Spotos can improve your logistics business operations

Improving logistics efficiency starts with using emergent technologies in freight forwarding, like Spotos.

Spotos aims to link shippers and carriers through a digital freight forwarding platform.

Its cutting-edge marketplace gives you complete discretion to:

  • Select partners.
  • Manage requirements for transportation.
  • Provide in-depth details on each carrier and shipper on the platform.

Additionally, Spotos allows you to manage freights and interact with carriers. Our system also recommends the best pricing following your unique needs.

We’ll get the job done, help reduce your carbon footprint, and invest in more important areas of your business.


What are the significant factors affecting logistics?

Sustainability in logistics requires three main elements: social, environmental, and financial responsibilities.

The main elements affecting logistics include:

  • Transportation costs.
  • Demand volatility.
  • Regulatory constraints.
  • Rising fuel prices.
  • Incomplete orders.
What impact has the COVID-19 pandemic had on logistics?

The logistics industry took a big hit with the COVID-19 pandemic. There was an evident disruption in global supply chains with limitations on commerce and transit. And the need to put health and safety precautions in place was vital.

What role does technology play in addressing logistics challenges? What are some of the most innovative solutions available?

Technology is essential in addressing logistics difficulties. It gets the job done through the following:

  • Automation.
  • Real-time tracking and monitoring.
  • Detailed data analytics.
  • Supply chain operation optimization.

An innovative solution gaining popularity is the digital freight forwarding platform, Spotos.

Spotos addresses logistics challenges using modern technology. The platform gives businesses better visibility and control of land transport.

Try Spotos for free and save up to 30% on future shipments!

How can logistics companies manage risk in an unpredictable business environment?

Logistics companies can carry out effective risk management in a volatile environment by:

  • Diversifying their supplier base.
  • Staying on top of the latest industry news.
  • Reducing costs with digital solutions.
  • Automating processes to avoid human error.
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