Outsourcing logistics has become trickier. Adjusting plans and dealing with longer timelines might be necessary.
Urszula Kelly breaks down these new challenges—she’s making everything clear.
To see how these issues affect businesses, watch the video below.
Logistics Outsourcing: Key Challenges and Solutions
People Shortages
This week, we’re exploring the challenges of logistics outsourcing, with insights from Ursula Kelly. The biggest issue currently is a shortage of people. We’re experiencing a significant lack of drivers, warehouse staff, and administrative personnel. This shortage disrupts operations and complicates the efficient management of logistics tasks.
Equipment Shortages
Another major problem is the shortage of equipment. In the past, acquiring trucks and other essential equipment was relatively quick. Nowadays, however, the wait times for new equipment extend from 18 to 24 months. This delay impacts the ability to meet current demands and provides timely services, adding pressure to logistics operations.
Increased Consumer Spending
A third challenge is the unexpected rise in consumer spending. Predictions of an economic slowdown have not materialized, and demand remains high. This discrepancy between supply and demand further complicates logistics, making it more difficult to manage orders and deliveries effectively.
Consequences for Businesses
These challenges force businesses to rethink their strategies. Often, companies must compromise on their ideal logistics providers and adapt their expectations. Instead of waiting for perfect solutions, businesses need to work with available options and adjust their requirements to fit the current constraints.
Tips for Outsourcing
When considering outsourcing, it’s crucial to set realistic expectations about what can be outsourced. Evaluate your operations to determine what parts can be adjusted or given up. Additionally, allow extra time in your search for logistics providers. Many companies are seeking similar solutions, so patience is essential. Finally, ensure that the person managing your outsourcing process is well-informed about current market conditions. They need to be capable of handling challenges effectively and making necessary compromises.
For detailed information of this topic, 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“.
