Logistics is the sector, which is growing rapidly. With the boost in E-commerce and M-commerce activities, Logistics has found its best niche of growth.
A Survey of Economic times says India’s logistics sector to reach USD 215 billion by 2020. With a high growth rate, logistics is the sector of great growth. However, at the same time the logistics sector has its own issues. Here is the list of 9 issues that slows the growth of logistics Industry.
1.Traveling costs
Traveling is the oxygen of logistics. With rising fuel prices, traveling costs are increasing and this is causing real problems for the growth of Logistics industries.
Solution
Widely dispersed customer base increases the travel distance as well as the time excessively. Improper planning and the distribution of workforce increase the travel cost enormously. Effective travel management together with the traveling employee management can optimize the travel plans and thereby helps in reducing the travel costs.
2.Manpower management
Man-power management in the logistics industry is tricky for the management. Lack of proper management and monitoring set a confused condition for logistics employees as well as for the management. Proper management insists the staff about changes and to help them with live information. Due to lack of the tools to monitor the field-staff, Logistics is failing to monitor the activities of the field employees.
3.Time management
For associations moving merchandise in and around outskirts showcases, the long lead time management is the greatest difficulty. For major employees are traveling, it is difficult for the management to allocate the time management strategies.
Solution
Technology that allows proper task distribution as well as the task allocation according to availability together with the location status will help the employee manage their time. This will help the logistics firm to increase their business along with the cost reduction.
4.Productivity
Lack of proper management of your traveling employees, issues with the time-management together with the lack of supervision and time theft activities affect productivity negatively.
Less productivity as well as time-theft activities affecting logistics sector badly.
Technology which allows the automation of traveling employee management can boost the productivity. This renders real-time supervision and also cuts off the barriers of the communication between management as well as the employee.
5.Employee attrition
Lack of proper attributes to compensate for the achievements of the employee together with the lack of personal and professional life balance is heading to the number of employee attrition in the logistics industry.
Many logistics employees often feel that they are overlooked for a deserved promotion as well as for the salary hike. Few may leave their jobs, for they fail to balance their personal and professional life. Many complain about repetitive and un-necessary travel for customer service.
Proper task allocation with respect to employee availability together with the location monitoring will reduce the burden of extra travel on logistics employee. This will reduce the traveling, thereby helping save the cost as well as to improve the productivity of the employee.
6.Time-Theft
Monitoring time theft is one step closer for the increased profitability. This may not sound big, but on a large scale time-theft activities hindering the growth of the logistics sector. Employees may claim long time investment without doing any tasks in the claimed time.
Proper management of traveling employee with the tools that can manage activities of the employee without micromanaging the employees will contribute to the growth of the logistics business.
7.Attendance
Traveling employees often face this issue irrespective of the industry they work with. Traveling employees often have to visit their office mere for the sake of the attendance. This is quite often in practice for logistics employee. Attendance issue results in extra traveling, cost, payroll as well as the travel claim issues for the traveling employees of the logistics sector.
A GPS based system that can allow marking attendance of the employee irrespective of their location will solve the problems of traveling employee attendance issue. This will avoid the travel of the employee for the sake of travel.
Monitoring attendance will help logistics employee to stay away from paper works of attendance and resulting issues with payroll and claims. Integrating Attendance system of logistics employee with the entrepreneur system of the logistics sector will avoid paperwork’s associated with the traveling employees.
8.Wrong claims
Traveling employee often claim wrong travel claims. They claim for the non-existent trip or else may claim the distance wrong. This will lead the cost and increase the cost of operations of the logistics business.
Travel claims and reimbursement always are confusing. A lot of paperwork involved with Travel claims and reimbursements. This will increase the burden on HR as well as the finance departments. At the same time, this may lead employee demotivation due to delay in sanctioning travel claims.
A system that automatically calculates the travel distance together with the details and payroll integration will solve the issue of wrong travel claims. This will save enormous time for HR as well as the finance department. Elimination of paperwork’s avoids the confusions associated with travel claims. This eliminates the delays in travel reimbursement of logistics employees.
9.Lack of supervision
Supervision plays a key role in the growth of the logistics sector as the sector mainly depends on the traveling employees. Logistics supervisor sets the overall logistics plan, giving employee’s tasks, timelines and checklists to ensure the supply chain flows smoothly.
Traveling employees of logistics employees are less educated, hence they need a lot of traveling and supervision for the operation. Lack of a real-time supervision for logistics employees regularly lead to confusions and affects customer service.
Technological solutions to provide the real-time supervision for the logistics field employee will enhance the customer service. This will also help to reduce the multiple travels to reach the customer. Real-time supervision not only helps the logistics employees but also help the supervisor in scheduling, rescheduling and modifying the task in a real time.
Real-time supervision helps employees in managing their task and time, this increases the efficiency of the logistics field employee.
Conclusion
With the boost in online sales, the Logistics sector is growing profoundly. Despite its growth, Logistics fail to monitor their field employees. This is increasing their operational costs and decreasing the profitability.
Issues like improper HR management leading to wrong travel claims, time theft activities. This is increasing the travel costs against ever-increasing fuel rates. Along with these issues like lack of attendance system, payroll issues, confusions in claims and reimbursements, delays in reimbursements.
A technological solution that can provide the field employee monitoring without micromanagement will help the logistics sector’s growing exponentially.
