Challenges of Growing a Logistic Delivery Business

The logistics delivery industry is facing a new era that has changed the customer consumption patterns to a great extent – thanks to the rise of e-commerce and online retail. It has given customers the power to buy almost anything from anywhere with just one click. However, with businesses going online, it has posed a challenge to the logistic and supply area because enterprises had to update pretty much all of their selling strategies as well as the distribution channels. If solved, businesses can enjoy the competitive edge over their competitors.

However, these challenges are influenced by changing, and growing customer demands and complex business models that have a business forced to think about how it can personalize a conventionally standard service.

While businesses are struggling to get optimum results, there are some who have managed to stand up to the growing industry needs.

With that said, here are the top challenges of growing logistic delivery business.

#1 Technology

Technology is the key to success for a logistic company. However, it has been seen that the majority of the logistic delivery businesses are struggling to get the technology in the right place. This is because the customers’ needs are ever-changing, and it has become difficult for businesses to cope with it. For starters, businesses are developing delivery apps for the customers; however; they don’t know what features to include to help people access it more. On the other hand, businesses are too focused on solving their problems all by themselves that they are overlooking the fact that there are services dedicated to solving their problems. Companies like ManageTeamz are technology companies that are focused on fueling logistic delivery businesses by boosting their team’s productivity. They can help you track your employees, fleets, delivery agents with delivery management software, and help establishing a successful business relationship with your customer.

In this day and age of business, it is important that you take full advantage of whatever resources you can find. If technology is your weak link, you need to work with those who are pros in the field.

#2 Transparency

With the logistic delivery industry getting complex, it has become difficult to maintain transparency. Every customer has the desire to anticipate, understand, and know. As a logistic delivery business owner, you need to provide some visibility to your customers. This is how you can establish trust in your in them. Whether it is an on-demand delivery or your traditional delivery, you need to provide your customers with all the information regarding the package, from it is being processed to the product has dispatched, where it has arrived, who is the delivery agent, and more, customers need to know this. This is how you can engage with your customers and build a relation.

You can use real-time tracking to tell your customers everything related to their package and delivery. You customers would want to have complete visibility over their package and the process they are going through. However, most companies are still struggling to provide transparency to their customers.

#3 Delivery Cost

According to a report, it was found that over 28% of the total delivery cost comes from last-mile delivery. While cost is not a new issue, new expectations like on-demand delivery or same-day delivery have put a significant strain on budgets. On the other hand, when we talk about e-commerce, there can be inconsistent demand like increased sales during holidays. All this has influenced the delivery cost to surge up, which logistic delivery businesses still haven’t found a solution for.

This is not an issue that only a small-scale logistics delivery business face, but online retail giants like Amazon had a real problem with this issue. According to reports, Amazon’s biggest challenge was last-mile delivery and their largest cost was fulfillment during the holiday season of 2019. However, they found a solution to tackle this issue. Amazon handled the challenges of last-mile delivery by owning the entire supply chain.

While this not maybe the best of a solution for other businesses, planning and efficiency can go a long way to neutralize this issue. Meaning, businesses have to come up with the solutions that cater to the needs of their delivery module.

#4 High Friction

One of the greatest challenges when it comes to growing a logistic delivery business is dealing with customer inquiries. It causes friction in the entire process, affecting the business as well as the customers. All the time, customers are inquiring about their delivery. Some are requesting about how it should be delivered. They make updates in the delivery address, which makes it even more difficult for the delivery service provider to keep up with the process. All these are the sources of high friction, which can influence the service of delivery.

You have to create a frictionless delivery experience to cut costs and streamline efficiency. This is where you need to make use of technology to enable open communication with the customers.

You need to provide complete visibility to your customers regarding their package even if there are frictions in the process. Effective communication will make sure that all the customer queries are sorted out so that they won’t anticipate anything bad or negative regarding your services. The challenge with this is creating an effective customer service team that can take care of the customer needs so that you and your team can look into the technical aspect of the service.

Building an infrastructure to set up a customer service team can be costly. It can be beneficial if you can hire a customer service management company to look after this aspect.

#5 Workforce Management

One of the trickiest challenges to overcome in this industry is workforce management. It is important to maintain a humane approach when dealing with your workforce while keeping the best interest of your company in mind. The staff is always faced with complexities when it comes to different geographic locations. Thus, it is important to influence proper work-order management by decentralizing responsibilities to implement efficient management.

Final Words

The logistic delivery industry is faced with new challenges every other day. As a business owner working in this industry, you need to keep up with the trends while making use of technology. It will help you grow your business and help get more customers.

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