Tag Archives: logistics challenges

The Main Challenges of Food and Beverage Shipping

Working in the food industry is incredibly exciting and diverse, however, it can be a very complex sector. Food supply chains involve an endless number of processes, and unraveling them is quite a challenge. Especially, food and beverage shipping.

The food and beverage sector is tightly connected with logistics and transportation. People are constantly searching for food items and fresh produce at stores all across the world. This means that the demand for fast and reliable food shipping is higher than ever.  

Apart from time sensitivity, food supplies are extremely sensitive to spoiling. Perished products can easily lead to food poisoning and other effects of eating spoiled meals. Apart from money losses, departed products can get companies in huge trouble. Food suppliers and retailers have to constantly ensure security, quality, and authenticity of products. Food scams are estimated to be a $40 billion annual issue (let’s not forget the Horsemeat scandal). This means that strict administration of product quality at every stage of transit is critical. Handling safe transportation of food from the farm to the shelf requires rock-solid control.

Food retailers face numerous challenges while doing their job and have a large responsibility to meet the highest quality standards. Well-planned transportation helps to avoid these damage disruptions.

Here are the main challenges of food and beverage supply chains:

Trace-ability and visibility

One of the major undertakings in food supply chains is the ability to track and trace the location and condition of products. More and more customers pay attention to the product origin country, eco-labels, and other signs that increase visibility and guarantee authenticity. For example, the survey by the Marine Stewardship Council conducted that 66 percent of respondents consider trace-ability a primary factor in seafood purchase decisions.

Communication within the supply chain

Arranging efficient communication and collaboration in food and beverage retail is very complex. Primarily, because of the fragmented nature of the supply chain. With so many parties involved, it’s hard to set a linear string of communication, because many suppliers and food producers are located around the globe. If possible, it’s better to narrow down your suppliers’ list to those you can really trust. This will benefit both your company and your consumers. Additionally, you can use new technologies for strict product monitoring and auditing to avoid any disruptions.

Quality control and maintenance

Surely, with all the links involved in the chain, it’s important to ensure a smooth, well-organized, fast delivery. While many cases of food perishing takes place because of late delivery, other causes can include poor storage conditions, messy warehousing and inventory that affects the product quality. That’s why strict tracking of product condition is crucial for eliminating supply chain disruptions.

How can logistics companies help?

Since food supply chains are very complex, many companies outsource their logistics operations. Third-party logistics companies have experience in the industry, and can efficiently manage your transportation. Especially when it comes to shipment tracking, 3PLs step into the game with their capable resources for tracking and tracing your loads. Additionally, 3PLs can arrange smooth communication and execute tedious manual operations for you.

PLS Logistics Food and Beverage Shipping

Looking for food supply chain solutions? Learn more about our Food & Beverage shipping services today!

5 Challenges Logistics Managers Face Every Day

logistics

In present-day global economics, logistics plays a key role in facilitating trade. Also, by extension, ensuring the success of business operations. Logistics managers have seen increasing challenges to create and keep efficient and effective logistics and supply chain methods.

Here we discuss five of the biggest logistics challenges faced on a daily basis.

Key Challenges Faced by Logistics Managers

1. Customer Service

Logistics management is all about providing the right product in the right quantity to the right place at the right time. Customers want full transparency into where their delivery is at all times. In this day and age, the location of a customer’s shipment is as interconnected as your social network. In fact, as customer expectations have increased, their willingness to pay for fast shipping has decreased, with just about 64 percent of consumers unwilling to pay anything extra for less than two-day shipping.

2. Transportation Cost Control

One of the highest costs contributing to the ‘cutting transportation cost’ concern is fuel prices. Higher fuel prices are likely to increase transportation costs for U.S. shippers this year by pushing up fuel surcharges. Additionally, rising U.S. diesel fuel prices are escalating surcharges added to freight rates, which is reversing a two-year trend that cut into the revenue and earnings of truckers as fuel prices plummeted.

3. Planning & Risk Management

In order to stay as efficient and effective as possible, periodic assessments and redesigns of each business sector are necessary. These adjustments are put in place in response to changes in the market, such as new product launches, global sourcing, credit availability and the protection of intellectual property. Managers must identify and quantify these risks in order to control and moderate them.

4. Supplier/Partner Relationships

It is important to create, understand and follow mutually agreed upon standards to better understand not only current performance but also opportunities for improvement. Thus, having two different methods for measuring and communicating performance and results in time and effort wasted.

5. Government and Environmental Regulations

Carriers face significant compliance regulations imposed by federal, state and local authorities. As well as federal regulations, environmental issues such as the anti-idling and other emission reduction regulations brought about by state and local governments have created concern that the compliance costs could exceed their benefits.

With the landscape of business operation continuously changing, there is a shift in the ensuing challenges as well. Therefore, staying up to date with these changes and taking preemptive measures to ward off challenges is a sign of successful logistics management.

 

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