5 Logistics Management Problems That Can Cost You Business

Let’s face it, without logistics management, it’s next to impossible to achieve your business goals. Moving your goods throughout the supply chain involves a lot of processes and if one is not working properly or effectively, it can really cost you business. Brendamour Warehousing, Distribution & Services has identified five common logistics management problems that businesses should avoid because they can adversely impact their bottom line.

Problem #1: Inflexible and Unscalable Warehousing

Every company has different needs for public warehouse space. Some need to expand warehousing space for a couple of months and scale back during slow buying seasons. Others have goods that can’t be stacked and need customized racking systems. Some businesses need food-grade public warehouse facilities.

Beyond storage needs, businesses need flexibility and scalability in a public storage warehouse so they’re not paying for space they don’t use, but have access to space when demand fluctuations call for it. Without this flexibility and scalability, your business is paying more for storage it doesn’t need and is put in a position of having to secure other public warehousing space in storage facilities that charge premium fees during high-demand seasons.

The Solution: At Brendamour Warehousing, this problem never exists for our clients because our 3PL services are flexible, scalable and customizable to meet their specific needs. We tailor our warehousing services to your type of business and have the type and size of space needed to store your goods as you need it. More importantly, you only pay for the amount of space you use.

Problem #2: Inadequate Infrastructure to Move Your Product

Logistics is much more than moving product from Point A to Point B. It encompasses the entire supply chain, including raw material handling, production, packaging, warehousing, inventory management, order fulfillment, distribution, transportation and reverse logistics to handle returns. Businesses without an effective infrastructure struggle in managing logistics in a timely and efficient manner.

An ineffective infrastructure can cost you business in many ways. For starters, your customers will not tolerate continual slow delivery response, orders filled incorrectly, out-of-stocks, back orders, or poor customer service. Businesses with an inadequate infrastructure are also unable to respond to changing trends in the global marketplace, fluctuations in business, new sourcing opportunities and customer requirements, all of which cost a business in new business and repeat sales.

The Solution: With our all-encompassing 3PL services, Brendamour Warehousing, Distribution & Services provides logistics for your entire supply chain that are streamlined, affordable, customizable and responsive to customers’ needs. In addition, our transportation management services move your raw materials and finished goods in a manner that complements your corporate strategy. We keep things moving through your supply pipeline with automated processing and strategies, like cross-docking and transloading, that minimize handling of your goods, ensure accuracy of orders and quicken delivery time with optimized transportation methods and patterns. Our goal for your business is to keep efficiency levels up and transportation expenses down, regardless of your geographical range.

Problem #3: Incomplete Flow of Information

Many companies lose valuable business because of an inadequate flow of information. Not knowing where your raw materials and goods are in the supply chain causes costly mistakes, like duplicate orders, lack of coordination between suppliers, manufacturers, carriers, warehouses, customers and internal departments, like customer services, sales, marketing, logistics and accounting. Without the proper IT system in place to integrate this flow of information between all parties, the effectiveness of your business suffers greatly.

The Solution: Brendamour uses state-of-the-art technology to coordinate warehousing, distribution and logistics. This provides your business with a complete, multifaceted cycle of information that flows in real time to internal and external groups, including those who handle material requirements, production planning, sales forecasting, customer orders, distribution requirements and finance, as well as manufacturers, wholesalers, vendors and customers. Our advanced technology, which includes bar coding and scanning, along with automated programs that run the gamut from receiving orders via electronic data interchange (EDI), to tracking inventory at various levels, to transmitting advance ship notices, to tracking shipments, ensure your business can plan, anticipate and react to the ever-changing marketplace.

Problem #4: Costly Reverse Logistics

Returns are extremely costly to businesses without reverse logistics as a key part of their logistics management strategy. When customers return a product, they expect a smooth, accurate and fast process. Businesses unable to meet customer expectations for returns can expect that customer not to return to do business with them again.

The Solution: As a 3PL, Brendamour handles reverse logistics with automated systems that simplify the process and track returns and replacements every step of the way. This includes routing returns once they arrive at our warehouse, such as return to inventory, placed for repackaging, returned to the designated supply point if defective, or sending out a replacement product to the customer. With our process, your business avoids costly mistakes and breakdowns that can occur in a return process that involves multiple transactions.

Problem #5: Inexperience with International Logistics

Companies that do business internationally without using a foreign trade zone warehouse face cash flow problems. That’s because they have to pay the required duty fees and excise taxes on their merchandise before sales have occurred.

The Solution: Brendamour Warehousing is a certified foreign trade zone (FTZ). This means your goods can be stored in our warehouses duty and tax free until they are sold. In addition, your goods can be exported from our FTZ without paying duties and excise tax. Plus, your business receives all the expertise and our FTZ services needed to move your product globally and manage your cash flow during the import and export process.

Review Your Current Logistics Management

How many of these logistics management problems can you identify as occurring in your business? Now’s the time to fix problems that can cost you valuable business with the Brendamour Warehousing solution. Find out how our third party logistics services can fulfill your entire supply chain needs, save you money and time, and increase your customer satisfaction levels and business reputation. Get started today by getting in touch with us.