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5 Problems in Logistics and its Solutions

5 Problems in Logistics and its Solutions
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Along with the development of technology, it certainly affects various industrial activities, one of which is the logistics industry. On this occasion, we will discuss various kinds of problems in logistics and their solutions, which are often faced by logistics service providers.

Today logistics has a very important role in the supply chain industry in the world. Especially with global trade activities that no longer recognize distance boundaries and language barriers.

The distribution of goods carried out by logistics companies, namely by delivering large goods between cities, between islands and even between countries is a common thing.

However, if we look at how logistics delivery services work, of course there are still many problems that may also be felt by business people who use the services of logistics companies.

On this occasion, we will focus on discussing examples of logistics problems and their solutions that often occur in Indonesia.

Logistics Problems in Indonesia

In everyday life problems will always occur, as well as in logistics activities. Problems are something that cannot be avoided by various industrial companies, as well as logistics companies who are responsible for shipping goods.

Shipping services that deliver small items are also responsible for the goods they deliver, especially large items which certainly have more quantities and weights.

This is one of the triggers why logistics companies are currently trying very hard to improve their services, namely by utilizing existing new technologies.

The following are logistics problems that are often faced by companies in Indonesia, among others:

1. Lack of Knowledge of Information and Communication Technology

There are many logistics companies that have experienced obstacles in terms of information and communication. This means that most companies still use manual systems or paper-based systems. In addition, there is a limitation of service network coverage, non-cellular.

This causes problems to arise, such as the goods being sent experience obstacles that should have been known by the recipient or sender.

However, because the company has limited reach to consumers, the information does not reach them, causing new problems.

Problems like this make logistics companies sometimes considered bad in the eyes of business people so that consumers don't trust them anymore.

2. Infrastructure Problems

One of the problems in logistics in Indonesia is the number of inadequate infrastructure facilities, ranging from damaged roads to the lack of ports for docking logistics ships. This is certainly a risk in shipping goods to distant places.

Infrastructure problems are the most serious problems in Indonesia when compared to other countries.

The infrastructure problem is divided into several aspects, including the number of ports in Indonesia and damaged road infrastructure.

Port infrastructure

The main case in port problems is the unavailability of international hub ports in Indonesia. That the increase in global trade will continue to increase in the future must be anticipated properly.

The lack of technology causes the container clearance process at the port to take longer, thus harming business people.

Road infrastructure 

The distribution of goods will be hampered if road conditions or driver discipline have not been resolved. An example of this case is the cross-economy of the islands of Java and Sumatra which requires improvements to the main economic routes so that goods distribution activities are more effective.

And now the government has responded to complaints from these business people by building Trans Sumatra and Trans Java toll roads. This certainly makes business people happy because their complaints have been responded to well by the government.

3. Shipping Costs

This problem is often felt by consumers who use inter-island freight forwarding services. The extent of the archipelago in Indonesia is the cause of the high distribution of goods.

As is well known, the distribution of goods between islands must use sea transportation, namely ships. This mode is what makes prices relatively high so that consumers are very heavy if they have to pay very expensive fees.

When compared to other countries, Indonesia is classified as a country with high shipping costs, the comparison is about 23 percent higher.

4. Damaged Goods Intransit 

Within one day of delivery, the number of goods that must be sent can reach hundreds to thousands of types, this makes the shipping service unable to control the physical condition of the consumer goods one by one.

This can happen due to several factors, namely improper packaging of goods, conditions of goods that are easily damaged or shock of goods in delivery which causes goods to be damaged.

This case certainly makes consumers feel disadvantaged, especially if the consumer does not have insurance for their belongings.

5. Availability of Shipping Receipt Checks

As a consumer of a freight forwarding company, of course you want to get a good experience from the company.

One way that can be done to satisfy consumers is by showing and notifying the position of their goods in real time. These activities can be tracked using a shipping receipt check provided by the company, so consumers can estimate when the goods will be received by them.

Solutions to Logistics Problems in Indonesia

5 Problems in Logistics and its Solutions

After you know and understand what are examples of logistics problems in Indonesia, now is the time to find out what the solutions are.

The following are Solutions to Logistics Problems in Indonesia, namely:

1. Organized Logistics Fleet Management 

Logistics fleet is an important transportation that can support goods distribution activities, therefore as a logistics company that meets standards, you must pay attention to the fleet in good condition.

That the fleet is an asset that must be maintained so that operational activities run smoothly. Make sure the truck maintenance schedule is carried out properly and correctly.

In addition, make sure to maximize the presence of the fleet, so that when the company sends goods, there is no empty cargo that can harm the company's operational costs.

2. Use Insurance

As a good company, you should educate consumers by urging them to use goods insurance.

Especially if consumers often use shipping services with large weights or quantities, so that when there is an incident of damaged or lost goods, there is no loss between the two parties.

If the goods are damaged or lost then the consumer will be the one to bear it, of course this is not a cheap cost and it is a loss for business people.

3. Cost Transparency

Expensive shipping costs are a consumer consideration for shipping service companies. If your company does not want to be seen as an expensive service, then provide information regarding the distribution of goods correctly.

One of them is cost transparency, you don't need to be too transparent, just show what facilities are the main priorities of your company.

4. Use Logistics Technology

If your company wants to gain the trust of many consumers, then immediately use the special tools and technology of logistics companies.

One of these logistics technologies is a GPS tracker, a tracking device that uses AVL (Automated Vehicle Locator) technology so that it can find out the position of the goods being shipped.

Not only that, the GPS tracker has now been integrated with tools such as TMS (Transportation Management System) which provides various features to simplify operational activities such as improving customer service, increasing warehouse efficiency and increasing the distribution of goods.

That's information related to Problems in the Logistics Sector and their Solutions. Hopefully the information above can add to your insight.

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