By Ana León and Melissa Cantú
Hello! We found this very interesting article about 5 common logistics mistakes that small businesses make. The article talks about how companies sometimes only focus on the product and on the client’s perception of it, but not on the process of delivery. The following mistakes are made:
1. GUESSTIMATING COSTS. Sometimes businesses accept offers and promise deliveries by only estimating transportation costs, and in the end they might end up loosing instead of wining from the trade if transportation costs result higher than expected.
2. FAILING TO AUTOMATE. Some business, especially small ones, tend to be reluctant to changes and this makes them refuse new technologies/software that makes logistics tasks more efficient. These could save significant amount of time and costs if only businesses would give them a try.
3. SHIPPING INTERNATIONALLY WITHOUT DOING THE HOMEWORK. Taking into account taxes on specific items and tariffs is very important and have to be researched, it is worth it to research beforehand, a mistake in this could cause big loses.
4. ESTIMATING TODAY’S COSTS BY YESTERDAY’S MERITS. Retailers sometimes forget about the changing costs and make predictions assuming equal costs for incoming years; its important to consider they almost always vary, for example price of oil or commodities.
5. CHOOSING THE LEAST COST-EFFECTIVE SERVICE LEVEL. Sometimes businesses select the fastest transportation option, without taking into consideration that there might be a cheaper way, for example, you can divide the products you are transporting based on the promised delivery times. Maybe it can be cheaper to divide the shipment in two and send half of it by road etc.