Top Challenges in the Logistics Industry

Top Challenges in the Logistics Industry

Logistics & supply chain industry is one of the most predominant & booming industries. The logistics & supply chain professionals are the major players in keeping the economy moving. The businesses of retailers, manufacturers & other service providers will come to standstill in the absence of the logistics industry. Major ecommerce industry leaders like Myntra, Amazon, flipkart & so on will lose half of their revenue due to disruptions in the logistics ecosystem. 


The minor disruption in the supply chain will affect the entire logistics & supply chain operations. With the use of high-tech solutions logistics professionals have solved major issues but with the changing customer expectations the logistics & transportation industry needs to revamp its business model. 

Top 5 Challenges in the Logistics Industry


Before analysing the solutions, let’s understand the core problems within the industry. Here are the top 5 challenges faced by the logistics businesses in India. 

High Transportation Logistics Cost 


Cutting down freight costs is the major challenge for logistics professionals. Transportation costs are a crucial part of a company’s logistics business. Fluctuations in fuel prices further complicate the problem. The increase in the fuel prices directly impacts the toll & companies pay more for shipping. 


High freight costs redirects logistics businesses to implement better strategies but most of these strategies come with trade offs; either reduce the number of carriers rather redistribute the load among fewer fleets or negotiate for lower prices. Consolidation of shipments might help in tackling the problem but it impacts the deliveries & customers negatively. 

Supply Chain Visibility 


The end goal of logistics & supply chain management is to deliver the right goods in the right quantity at the right place at the right time. To increase on-time deliveries & enhance customer experience is the end goal of logistics professionals. 


With the growing emphasis on technology & online media, the new-age customers expect 360 degree visibility of their order, from planning to delivery. Customers now demand fast & accurate shipping. To meet up with the expectations of new-age customers, it’s essential to keep the customer informed about the different phases of shipment. But providing 24×7 visibility of shipments is cumbersome for logistics professionals. Complete visibility means giving real-time notifications & alerts to end-users. Real-time tracking also helps fleet owners & drivers to take immediate actions in case of delayed deliveries. 

Improving Vendor & Supplier Collaboration 


Communication is the key to success in any business. But in the logistics ecosystem every process relies on communication. Infact logistics professionals spend half of their time communicating with vendors, truck pilots & other stakeholders. Failure to communicate with any of the stakeholders adversely affects the whole process. 

Improving Customer Experience 


Giving best customer service to clients is the end goal of every business & industry. But the parameters to enhance the customer experience in the logistics & supply chain industry are different. The modern customer is smart with hands on technology and demands visibility at every stage of shipment and requires assistance at various touch points. 

Economical Disruptions


Budget & revenue plays an important role in the success of the logistics businesses. Logistics budget impacts a lot due to changes in tax & exemption, fuel, manufacturing inconsistency and inflation. These disturbances can’t be controlled but keeping a track of revenue allocation and loopholes in the system can be of help to logistics businesses. 

How Technology can help? 


Technology is a moving factor behind the success of multiple industries & domains and the transportation & logistics industry is not an exception. With the use of advanced technology logistics businesses can 3X their revenue and increase on-time deliveries by 2X. The intervention of technology & logistics can improve the productivity rate by 80%. The logistics professionals can utilise their time in driving new strategies to improve the growth rate of their business. 


To tackle these challenges and give a new approach to the logistics industry, Fretron has developed solutions for end-to-end automation of logistics operations. Fretron’s passionate & enthusiastic product & technical experts have developed solutions that let logistics companies to  track their orders from planning to billing all at one single platform. Fretron does not modify the working style of logistics & supply chain professionals, rather align with their business model & goals. 


Here are some key modules that can help logistics businesses; 


Take a step towards technology with Fretron’s intelligent solutions and take charge of your logistics operations. From order planning to claim management, take smart decisions with Fretron.


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