Logistics outsourcing has become more complex than before. Companies often face challenges that require adjusting their demands and extending the timeline.
Discover the latest issues in logistics outsourcing and their impacts with insights from Urszula Kelly!
Watch the video below for more details.
This week, we’re diving into logistics outsourcing, a challenge many organizations are facing. Ursula Kelly, an expert in the field, shares her insights on the growing difficulties.
People & Equipment Shortages
The biggest issue right now is a shortage of people. We’re seeing a lack of drivers, warehouse staff, and administrative workers. This shortage is making it increasingly tough to run smooth operations.
Another major problem is the lack of equipment. In the past, you could buy trucks quickly. Now, waiting times for new equipment stretch from 18 to 24 months. This delay hampers the ability to meet current demands effectively.
Increased Consumer Spending
A third challenge is the unexpected surge in consumer spending. Despite predictions of an economic slowdown, demand is still high. This gap between supply and demand adds pressure to logistics operations.
These issues force companies to rethink their strategies. Businesses must compromise on their ideal logistics providers and adapt to the constraints. Clients need to adjust their expectations and work with available options rather than waiting for perfect solutions.
Top Tips for Outsourcing
Ursula offers three key tips for successful outsourcing:
- Set Realistic Expectations: Understand what parts of your operations can be adjusted or outsourced.
- Allow Extra Time: Be patient as finding the right provider can take longer than expected.
- Knowledgeable Tender Process: Ensure the person managing your outsourcing understands current market conditions and challenges.
Make sure to watch the video above to obtain the full insight about this.
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“.
