Worker supervising the warehouse

Signs Your Company Is Suffering from Logistics Losses

Every business has a promise. And that promise is to deliver great products and services. This can be easily done if you invest in reliable logistics infrastructures, which many businesses usually tend to forget. They overlook the importance of logistics, thinking that it is just about deliveries and receipts.

However, if you keep thinking that way, you can only expect that your business will suffer from losses. It is time to change the way you think of logistics. You must keep in mind that it is an important part of your business, as it is where you actually deliver your promise.

The first thing you need to do is to revamp your procedure and processes. But before that, you ought to know the signs your company is actually experiencing logistical losses. Below are some of those signs that you cannot (and should not) ignore.

When you have spotted them, you will need to work with a reputable logistics consulting company.

The Costs of Inventory

Inventory incurs costs, but it should eat up more than half of your monthly budget. This often points out to a certain problem: keeping more products than your facility can handle.

If you have more products under your shed, you will have to maintain their quality and integrity, which means adjusting the environmental factors and having more people to accommodate them; all these mean costs. One of the best ways to keep this from happening is through accurate forecasting and proper coordination with your clients and suppliers.

Excess or Shortage of Goods

It is normal that your facility will have minimal excess or shortage of goods and products. But if the excesses or shortages come in large figures, you should be alarmed. This means that there are great inaccuracies in forecasting.

When it comes to forecasting, there should be one and unifying look at the matters, which include your warehouse needs and your consumer needs. If you run multiple forecasts, there is a great risk that you are actually introducing layers of inaccuracies to the mix.

Client Complaints

Angry customer shouting over the phoneThis is perhaps the most obvious one. When you receive complaints regarding late deliveries and such, there are actually problems on your end. It could be that the products are dispatched right behind schedule, or your fleet has experienced problems along the way. Accurate forecasts will encourage early deliveries and technical improvements, such as the installation of GPS devices, will help improve fleet operations.

Compromised Goods

The goods you are keeping in your facilities are of value, so you should treat them with care. Some staff may be too lax when it comes to handling them: throwing the boxes carelessly and stacking the goods too high.

If the goods get compromised or damage, that will mean losses on your end. With that, you should have standard protocols regarding product handling.

Delivering your products is not just about deliveries. It is all about care and quality, ensuring that you only deliver great and high-quality products to your clients and branches.