Logistics outsourcing is more complex than before. It’s common now to see changes in demands and longer timelines.
Urszula Kelly explains the current problems in logistics—she’s providing a straightforward look.
To understand how these changes impact the industry, check out the video below.
Understanding the Challenges in Logistics Outsourcing
People Shortages
This week’s focus is on the growing challenges in logistics outsourcing, with insights from Ursula Kelly. The primary issue is the shortage of people. There’s a significant lack of drivers, warehouse staff, and administrative personnel. This shortage is making it increasingly difficult to maintain smooth operations and manage logistics effectively.
Lack of Equipment
Another major challenge is the shortage of equipment. Previously, obtaining trucks and other necessary equipment was relatively simple. Now, the waiting period for new equipment extends from 18 to 24 months. This delay affects the ability to meet high demand and provides timely services, adding extra pressure on logistics operations.
Increased Consumer Spending
The third challenge is the unexpected surge in consumer spending. Although an economic slowdown was anticipated, demand remains high. This gap between supply and demand adds further strain to logistics, complicating the management of orders and deliveries.
Impact on Businesses
These issues force companies to make difficult decisions. Often, businesses must compromise on their ideal logistics providers and adjust their expectations. Rather than waiting for the perfect solution, companies need to work with available options and adapt their demands accordingly.
Tips for Outsourcing
For those considering outsourcing, it’s essential to set realistic expectations. Assess which parts of your operations can be adjusted or outsourced. Additionally, be prepared for longer wait times when searching for providers. Many businesses are looking for logistics solutions, so patience is key. Lastly, ensure that the person managing your outsourcing process understands current market conditions and is equipped to handle any challenges that arise.
For further insight on this topic, make sure to watch the video above.
Related articles on this topic have appeared throughout our website, check them out:
- Struggling with Logistics Challenges? A 3PL Might be Your Salvation
- Insourcing or Outsourcing Logistics: Don’t Choose the Wrong Reasons
- 6 Quick Tips for Successful Logistics Outsourcing
- Logistics Outsourcing Partnerships and Why It’s Time to Break a Rule or Two
- The Power of Outsourcing for Supply Chain Improvement
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated September 6, 2023, under the title “Current Logistics Outsourcing Challenges“.
