Getting into logistics can be intimidating. There are so many elements, new terminology, and seemingly complicated systems to navigate. However, most people make the same mistakes. The silver lining is that once you know what they are, you can prevent most errors before they even occur.
Here are 5 of the most common logistics mistakes that you are likely to make as a beginner:
- Failure to see the forest for the trees
A lot of people when starting out will focus on one aspect of logistics, say transportation or warehousing, and neglect to fully understand how all of the different components interact with one another. Logistics is a process and not a series of independent functions. If one function fails then the entire process is impacted.
To prevent this always try to think in terms of flow. Where is the product coming from? Where is it going? How is it getting there?
- Inventory planning
One of the most common mistakes is having too much or too little inventory on hand. If you have too much then you are wasting money. If you have too little then you are losing money.
The key here is balance. Start to learn how to analyze your demand and plan your inventory accordingly.
- Selecting the wrong mode of transportation
Everything doesn’t need to be shipped overnight. Everything shouldn’t be shipped on the cheap either. A lot of times when people are starting out they will choose the wrong transportation mode because they aren’t taking into account all of the different factors such as time sensitivity, cost, distance and the type of goods.
A good rule of thumb is to compare your different options and optimize your shipment based on the specific needs of the situation.
- Not using real time tracking
If you aren’t tracking your shipments then you are playing a guessing game. This isn’t a game you want to play in logistics. You open yourself up to so many potential delays, lost shipments and miscommunication if you aren’t using real time track and trace.
In today’s logistics world there are so many different track and trace technologies that allow you to receive status updates on your shipments at various milestones. Make sure you are using this to your advantage.
- Not having enough problem solving skills
Things are going to go wrong in logistics. It is inevitable. Weather, mechanical issues, system failures, the list goes on and on. A lot of times when people are starting out they expect everything to go smoothly and when it doesn’t they are left scrambling.
Learn to be flexible and adapt on the fly. There is always more than one way to solve a problem.
Conclusion
We all make mistakes when starting something new and that is okay. However, in logistics mistakes can be costly. Hopefully by understanding the most common logistics mistakes that people make when starting out you can begin to learn how to prevent them.
This is why we do what we do here at LogiFlowPro. We want to teach you how to think, analyze and act when it comes to real world logistics situations.
In logistics there is no such thing as perfection. You can’t control everything. But you can learn how to make the right decisions when things don’t go according to plan.
