There are basically two main missions as far as logistics is concerned
1. It is to make sure that the customers receive their goods and services as per their requirements and specifications. It is relevant here to mention the 7 R’s of Logistics – the right product, the right quantity, the right quality, the right time, the right place and in the right physical condition
2. To minimise the total cost of Logistics.
3. To provide for exceptional customer service. In the current scenario there is intense competition and for this they have to offer the best services to the customers.
The service components offer to the customers can be divided into 3 groups:
A) STRATEGIC components:
The firms here ensure that they have the best relationship with their customers and remain committed with them, always finding means for improvement and bringing a lot of transparency in their dealings.
B) LOGISTICAL components:
These include factors like the available of goods, the ability to replenish the goods in time, prompt delivery avoiding all unfortunate circumstances, and effective reverse logistics system, along with consistency and reliability of services – in short, the basic services required for the delivery of goods.
C) NON- LOGISTICAL components:
These include the value added services offered to customers including top marketing and managerial skills, proper follow up, credit facility, support for infrastructure development etc
But there are a lot of challenges to achieve this goal.
A few problems listed would include the
1. Rising transportation costs that include the rising cost of fuel, shortages of skilled drivers
2. Insufficient real time tracking and monitoring
3. Lack of skilled laborers and management professionals
4. Increasing pressure of the companies to give more importance to sustainability and lesser environmental pollution.
5. Disruptions in the supply chain that includes natural disasters, cyber security attacks, pandemics, transportation congestions and disruptions as well as supplier insolvency.
Better strategic solutions to resolve such issues would include:
1. Leverage in technology that uses tools like AI, GPS tracking, automation and Data analytics
2. Finding the best possible route that optimises on fuel usage and cost
3. Just in time inventory or JIT that produces storage costs and wastage
4. Regularly training staff to be aware of the best possible practices and compliance.
5. Improving the efficiency of warehouses
6. Sustainable logistics practices like using eco friendly waste and route optimisation for a positive environmental impact