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5 Problems in Logistics and its Solutions

The development of technology certainly affects various industrial activities, one of which is the logistics industry. On this occasion, we will discuss different kinds of problems in logistics and their solutions, which logistics service providers often face.

Today, logistics has a significant role globally in the supply chain industry, mainly 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, islands, and even between countries, is standard.

However, of course, let's look at how logistics delivery services work. 

Business people still feel a lot of problems when they 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. Logistics companies responsible for delivering goods are often unable to avoid various issues.

Shipping services that deliver small items are also responsible for the goods they provide, huge items with more quantities and weights.

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

The following are logistics problems that many companies facing in Indonesia, among others:

1. Lack of Knowledge of Information and Communication Technology

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

It causes many problems to arise, such as obstacles in delivering goods that the sender should know of the goods.

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 harmful 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 inadequate infrastructure facilities, ranging from damaged roads to the lack of ports for docking logistics ships. It is undoubtedly a risk in shipping goods to distant places.

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

Infrastructure problems consist of several aspects, such as the number of ports in Indonesia and the breakdown of road conditions.

Port infrastructure

The leading case in port problems is Indonesia's unavailability of international hub ports. The increase in global trade flows will continue to increase, and you have to find the right way to deal with it.

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

Road infrastructure 

If it can not overcome road conditions or driver discipline, it will disrupt goods distribution.

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. It certainly makes business people happy because their protests have been responded to well by the government.

3. Shipping Costs

5 Problems in Logistics and its Solutions

Consumers who use inter-island freight forwarding services often make this happen. 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 makes prices relatively high so that consumers are hefty if they pay costly fees.

If we look at other countries, Indonesia is a country with high shipping costs, and the comparison is about 23 percent higher.

4. Damaged goods in Transit

In one day of delivery, the number of goods shipments can reach hundreds to thousands of types.

And it makes the delivery service company unable to control the physical condition of consumer goods one by one.

Those factors include improper packaging of goods, the condition of perishable goods, or the shock of goods in shipping.

This case certainly makes consumers feel aggrieved, especially if they do not insure their goods.

5. Availability of Shipping Receipt Checks

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

One way to satisfy consumers is by showing and notifying the position of their goods in real-time. We can track this activity using shipping receipts so that consumers can estimate when they will receive goods.

Solutions to Logistics Problems in Indonesia

After you know and understand what examples of logistics problems in Indonesia are, 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 

A logistics fleet is necessary transportation that can support goods distribution activities. Therefore as a logistics company that meets standards, you must pay attention to the fleet's good condition.

The fleet is an asset that must be maintained so that operational activities run smoothly—ensuring the truck maintenance schedule is properly and correctly.

In addition, make sure to maximize the fleet's presence 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.

Primarily if consumers often use shipping services with large weights or quantities, 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 a costly service, then provide information regarding the distribution of goods correctly.

One of them is cost transparency. You don't need to be too transparent; 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 the most popular logistics technologies is GPS trackers. 

This tracking device uses AVL (Automated Vehicle Locator) technology to determine the position of goods during delivery.

GPS trackers are part of the TMS (Transportation Management System) tool. There are many features to facilitate operational activities, such as improving customer service, improving warehouse efficiency, and improving 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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