The freight industry’s top five challenges in managing supply chains.
The freight industry is very similar to a busy expressway. Cargos are moving across the supply chain to reach each stop at the right time. However, there are some obstacles that shipments and freight managers must overcome every so often.
In this article, we will highlight some of these obstacles, their impact on business and how to address them. Let’s get right to it.
A typical obstacle is Capacity limitations. Sometimes, containers are filled with needed goods that cannot reach their owners. The problem here is usually a shortage of shipping personnel, fluctuating demands or limitations caused by infrastructure — these can lead to delays or increased shipping costs.
In a situation like this, it is great to have an experienced freight manager who has strong relationships with transport providers and can explore alternative modes of shipping.
Another obstacle can be the Complexity of Global Trade. Global trade is the system with which countries trade the things they have for their needs. In 2019, Nigeria imported $1.5 billion worth of wheat from the US, which was only possible because all the trading conditions were right.
Global trade is like a puzzle with ever-changing pieces. Frequent updates in regulations, tariffs, and customs procedures contribute to the freight industry’s complexity. Staying updated on international trade regulations, teaming up with experienced freight forwarders, and utilising technology for streamlined documentation and compliance management can help to navigate the deep waters of international trade.
As any freight manager will tell you, there are few things worse than not having real-time information on shipment location. A lack of Supply Chain Visibility can create chaos. With tracking technologies like Tania, you can be updated at every turn. Visibility tech gives you the power of foresight and manoeuvre any obstacle that comes your way.
Find out more on How to Use Technology for Efficient Supply Chain Management.
Reaching the sweet spot between what is enough inventory and what is hoarding is a skill. Inaccurate demand predictions, limited visibility into inventory levels, and substandard inventory management can mess with business operations.
To regain stability, data-driven demand planning, inventory management systems, and streamlined order fulfilment processes can be implemented. These tricks will help keep your inventory in check, your customers happy and avoid Poor Inventory Management.
The freight industry can be unpredictable. Anything from natural disasters, geopolitical tensions, and supply chain disruptions can throw you off track. However, with a solid Risk Management strategy, backup suppliers and insurance coverage, you can withstand any storm that comes your way. With a well-thought-out continuity plan, your business operations will continue as usual, even in difficult times.
By overcoming these obstacles, businesses can navigate the fast-paced world of freight like pros. The easy way to do this is to have a solid partner, embrace technology and watch industry trends or combine all by choosing MVX as your freight partners.
With MVX, you will have an efficient supply chain and provide reliable and efficient services to your customers worldwide.
So, get started with MVX today and let’s navigate all the obstacles of the freight industry together!
