Major Factors affecting Shipping in Logistics Management

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There are several problems faced by the supply chain management in shipment. The following three factors are the major factors that affect Shipping.

Visibility Related Issues
People who are supply chain management departments are contacted by people from other departments like sales, purchasing and accounting asking for information related to shipments. Knowing about the status of the shipment like what products are in transit, where the current shipments are, when will the shipment arrive at the destination and how much it will cost to move the shipment from one place to another is of concern. The issues related to the visibility of status of the shipment can cause more expense to the company in the form of surplus inventory and impediments in sales channel.

Control Related Issues
In most companies, instructions are provided for routing the shipment and guidance will be given about how shipping of materials and products should occur. However, if the cost is taken by the buyers the instructions about what route to be chosen for delivering the shipment will be taken by buyers. When there are many customers for a company these guides provided by the customers will not be followed. The selection of carriers, identification and tracking of products, special instructions etc cannot be controlled properly in such cases. In such cases where lack of control occurs and buyers have to pay more amount in shipment which will lead to loss of customers.

Freight Cost Related Issues
The rate of shipment is beyond the control of supply chain management professionals. In certain cases, the lower number of staff available, smaller cost invested for Information Technology related products budget etc can be causing an increase in freight charges. Doing analysis about in what areas does the loss of money occurred will help in eliminating such cost in future. If a robust transportation management system is implemented at the company for shipping then it will solve many issues.

MBA in shipping and logistics

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