International Shipping doesn’t sound that complicated but can be a headache. Lost packages. Damaged products. Hidden fees. There is so much to it! Delivering the right products to customers is no easy task and there are lots of things that can go wrong. Let’s have a look at some common roadblocks:
Changing customer needs: The concept of ‘one glove fits all’ has died, and so have services that associated with the concept. There is a need for logistics solutions that must be tailored to each customer. Full transparency of orders, and clear progression from raw material stages to the final sale of goods have become standard for most commodity groups. With the existence of too many variables in global logistics and many different parties getting involved, keeping a consistently superior level of service might be challenging at times.
Right packaging: The worst thing that can happen to the delivery company is that goods that have been delivered to the consumer are broken or damaged. Today, consumers are demanding beer bottles, wine, cakes and cookies, apart from furniture and electronic goods; materials which necessitate meticulous packaging. On top of this, the packaging must conform to the requirements of delivery companies, and should be environment friendly.
On time delivery: Sometimes vessels take a lot of time to arrive at a place and they will not unload for a long time. It gets challenging to keep on-time delivery rates high. A strike or war risk in etc. in the country of delivery can also contribute to this problem. As we become more and more interconnected, we can foresee that these problems will increase in the future.
Infrastructure: In the age of mega alliances, one major problem that stands out is the infrastructure. With thousands of vessels serving major trade lanes around the globe, the problem of lack of infrastructure has become much more prominent recently. A lot of terminals are trying to complete their set up to accept large vessels and service them. This is causing congestion problems at most terminals leading to a delay in worldwide parcel services.
Capacity: Overcapacity in ocean shipping and tightening capacity in domestic shipping are both affecting the logistics world in a big way. Various studies have found that freight rates are on continuous pressure due to large vessel deliveries.
Security: A growing concern in the logistics industry is that goods are being passed from provider to provider. Shippers book the cargo with local truckers at origin, who delivers the cargo to another local warehouse for handling. The warehouses then load the cargo to trucks which deliver the containers to ports. When the shipment arrives at its final destination, it has passed through seven or eight different sets of hands. Unless everyone involved in this process does their due diligence, security may become a problem.
Business process improvement: Streamlining the supply chain remains a challenging problem. Within the supply chain, deviation from planned production, supply, and transit times can increase variability. These can lead to major deviations in the entire delivery process.
Improved customer service: Greater and better visibility of the supply chain leads to improved customer service. This is a huge challenge for every international delivery company.
Rise in technology and e-commerce orders: While big superstores used to put "mom and pop" shops out of business across the country years ago, e-commerce services, such as Amazon, Flipkart etc. are putting the pressure on brick-and-mortar stores. Essentially, retailers must adapt with the rise in technology and e-commerce sales if they hope to survive in a vastly competitive market. Also, global logistic providers must adapt their approach as well if they hope to effectively meet their consumers' needs.
Incorrect products or packages lost: Incase incorrect products are shipped by the delivery company or if the package is lost in transit, it leads to a lot of hassle for the sender and for the end consumer apart from taking a lot of time & energy. The consumer tends to distrust in the delivery company thus creating a bad name for its business.
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| International Shipping |
Changing customer needs: The concept of ‘one glove fits all’ has died, and so have services that associated with the concept. There is a need for logistics solutions that must be tailored to each customer. Full transparency of orders, and clear progression from raw material stages to the final sale of goods have become standard for most commodity groups. With the existence of too many variables in global logistics and many different parties getting involved, keeping a consistently superior level of service might be challenging at times.
Right packaging: The worst thing that can happen to the delivery company is that goods that have been delivered to the consumer are broken or damaged. Today, consumers are demanding beer bottles, wine, cakes and cookies, apart from furniture and electronic goods; materials which necessitate meticulous packaging. On top of this, the packaging must conform to the requirements of delivery companies, and should be environment friendly.
On time delivery: Sometimes vessels take a lot of time to arrive at a place and they will not unload for a long time. It gets challenging to keep on-time delivery rates high. A strike or war risk in etc. in the country of delivery can also contribute to this problem. As we become more and more interconnected, we can foresee that these problems will increase in the future.
Infrastructure: In the age of mega alliances, one major problem that stands out is the infrastructure. With thousands of vessels serving major trade lanes around the globe, the problem of lack of infrastructure has become much more prominent recently. A lot of terminals are trying to complete their set up to accept large vessels and service them. This is causing congestion problems at most terminals leading to a delay in worldwide parcel services.
Capacity: Overcapacity in ocean shipping and tightening capacity in domestic shipping are both affecting the logistics world in a big way. Various studies have found that freight rates are on continuous pressure due to large vessel deliveries.
Security: A growing concern in the logistics industry is that goods are being passed from provider to provider. Shippers book the cargo with local truckers at origin, who delivers the cargo to another local warehouse for handling. The warehouses then load the cargo to trucks which deliver the containers to ports. When the shipment arrives at its final destination, it has passed through seven or eight different sets of hands. Unless everyone involved in this process does their due diligence, security may become a problem.
Business process improvement: Streamlining the supply chain remains a challenging problem. Within the supply chain, deviation from planned production, supply, and transit times can increase variability. These can lead to major deviations in the entire delivery process.
Improved customer service: Greater and better visibility of the supply chain leads to improved customer service. This is a huge challenge for every international delivery company.
Rise in technology and e-commerce orders: While big superstores used to put "mom and pop" shops out of business across the country years ago, e-commerce services, such as Amazon, Flipkart etc. are putting the pressure on brick-and-mortar stores. Essentially, retailers must adapt with the rise in technology and e-commerce sales if they hope to survive in a vastly competitive market. Also, global logistic providers must adapt their approach as well if they hope to effectively meet their consumers' needs.
Incorrect products or packages lost: Incase incorrect products are shipped by the delivery company or if the package is lost in transit, it leads to a lot of hassle for the sender and for the end consumer apart from taking a lot of time & energy. The consumer tends to distrust in the delivery company thus creating a bad name for its business.
