In the last few years, the logistics and shipping industries have been hit by a number of disruptions, the worst of which is the global supply chain crisis. This is a consequence of the COVID-19 epidemic, which directly affected the logistics industry.
The supply chain ecosystem has been shaken by skyrocketing e-commerce purchases as consumer demand increases and global supply shortages are felt.
These supply shortages have dramatically increased transportation costs for many sectors, and as the dust settles throughout the first quarter of 2022, there are still many logistical problems that couriers and shippers need to address.
In this article, we will look at the most effective logistical problems and solutions that will help the industry solve them.
Record-high fuel consumption
Rising fuel consumption during the epidemic was already a problem, but the situation between Ukraine and Russia has worsened. The average price of petrol has risen to 00 4.00 per gallon as of writing and many politicians are blaming Big Oil for the spike.
U.S. sanctions on Moscow’s energy exports have also been blamed for the rise in prices, which could put additional pressure on shipping companies to find alternative energy sources.
This has far-reaching logistical problems for many companies, and without a plan to adapt, some companies may even go bankrupt. Here are some steps for courier and delivery companies:
Hybrid and electric vehicles
Switching to hybrid and electric fleets is a difficult investment for a courier. Technology is rapidly evolving, and new innovations are rapidly becoming available, which means that couriers will be able to purchase the best and most efficient vehicles for their fleet.
It not only addresses the current energy crisis but also the future of your business. Most courier companies will eventually switch to this vehicle, and this time, it’s a no-brainer.
Optimized route planning software
The more efficient a company’s route planning software is, the less energy is wasted. Route optimized to save time and reduce fuel is a win-win situation for both the courier company and their clients.
Although many small courier companies rely on publicly available GPS maps, such as Google or Waze, these platforms present a problem when planning multi-route travel. This is where courier companies can make the most of their route planning software
Instead of just plotting the best routes, companies can use their software to plot the best routes for each delivery to maximize their delivery time and reduce the amount of travel time wasted.
Lost or stolen packages
Lost or stolen packages are nothing new in the logistics industry, but in recent times it has taken a turn. Previously, most package thefts were due to verandah piracy, such as by neighbors or strangers who snatched a package out of someone’s door.
However, with the rise of e-commerce and independent courier, the scope for package theft has expanded in recent years. Reports of package theft by local couriers, who work as independent contractors, have increased.
Drivers from large companies like FedEx, Amazon, or USPS are less likely to have your package stolen. But for small, last-mile courier companies that hire independent contractors, they fight employee theft on a larger scale.
The problem is most pronounced for independent couriers due to lack of surveillance. To alleviate this problem, small courier companies can take security measures such as:
Real-time invoice tracking
Real-time tracking of each package is a huge advantage for courier companies. This reduces the risk of theft and delays and means customers can track their packages in real-time, with the added benefit of increasing customer satisfaction.
Proof of delivery confirmation
It is important to hold courier drivers accountable for delivering the package to its destination, and this can be made mandatory by proof of delivery confirmation.
Customer signatures can be forged, so courier operators should take pictures of package handoffs to package recipients whenever possible.