Last updated on Mar 16, 2024
- All
- Distribution Strategies
Powered by AI and the LinkedIn community
1
Delays and disruptions
2
Damages and losses
3
Costs and inefficiencies
4
Compliance and liability
5
Security and privacy
Distribution logistics is the process of planning, implementing, and controlling the efficient and effective flow of goods and services from the point of origin to the point of consumption. It involves various activities such as warehousing, inventory management, order fulfillment, packaging, and transportation. Transportation is a crucial component of distribution logistics, as it connects the different stages of the supply chain and delivers the products to the customers. However, transportation also involves various risks that can affect the performance, quality, and cost of distribution logistics. In this article, we will discuss some of the main transportation risks in distribution logistics and how to mitigate them.
Top experts in this article
Selected by the community from 16 contributions. Learn more
Earn a Community Top Voice badge
Add to collaborative articles to get recognized for your expertise on your profile. Learn more
-
13
- Sajal Singh, MFin, CITP® FIBP® Logistics Manager | Master of Finance | CITP®|FIBP®
3
- Leonardo Campos Diretor de logística, transporte, distribuição e Supply Chain
3
1 Delays and disruptions
One of the most common transportation risks in distribution logistics is delays and disruptions. These can occur due to various factors such as traffic congestion, weather conditions, accidents, strikes, customs clearance, regulatory changes, or unexpected events. Delays and disruptions can affect the delivery time, customer satisfaction, inventory levels, and operational costs of distribution logistics. To mitigate this risk, you should plan ahead and have contingency plans for alternative routes, modes, or carriers. You should also monitor and track the transportation status and communicate with the stakeholders in case of any changes or issues.
Help others by sharing more (125 characters min.)
- Sajal Singh, MFin, CITP® FIBP® Logistics Manager | Master of Finance | CITP®|FIBP®
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
As per my experience while working in asset based transportation company the following measures can be followed to mitigate delays and disruptions:1)Thumb rule for everything is rolling the trucks ahead of 2-4hrs ahead of time2) Planning ahead for the trip, making alternatives if the there is a traffic jam, road conditions. 3) Vehicle Pre- Trip inspection by mechanics 4) Real time communication with drivers and customers. 5) Live Tracking
LikeLike
Celebrate
Support
Love
Insightful
Funny
3
- Leonardo Campos Diretor de logística, transporte, distribuição e Supply Chain
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
Como o transporte no Brasil é muito dependente do rodoviário , a possibilidade de atrasos na entrega das mercadorias para clientes e lojas se torna um risco comum , principalmente nos grandes centros urbanos!A melhor forma de mitigar estes riscos é a busca do abastecimentos das lojas em horários de menor fluxo e também a utilização de outros modais como cabotagem!No last mile a melhor forma de evitar atrasos é ter parcerias ou possuir galpões de ré despacho dentro e próximo ao locais de destino finais e também pulverizar estas entregas em modais como motos, bicicletas e meios que sejam mais eficientes em locais de trânsito mais intenso.
Translated
LikeLike
Celebrate
Support
Love
Insightful
Funny
3
- Jasper Balkenhol Boosting brands on commerce platforms and social media | Managing Director at eBazaaris
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
To minimise delays and disruptions in transport, a key risk in distribution logistics, forward planning is crucial. Effective risk management includes the use of real-time delivery tracking systems to constantly monitor status and respond quickly when necessary. Establishing a flexible supplier network enables alternative suppliers to be utilised in the event of shortages. It is also advisable to strategically distribute stock levels to ensure that goods can be quickly redirected in the event of unforeseen circ*mstances. Transparent communication with customers about potential delays increases trust and satisfaction.
- João Guia Costa Continuous Learner | Healthcare | Hospitality | Retail
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
In my experience, delays in transporting medical equipment can significantly impact patient care, especially when dealing with diagnostic and imaging solutions crucial for timely diagnosis and treatment.To mitigate this risk, we've established clear communication channels with shipping providers, ensuring constant updates on shipment status and potential delays.Additionally, we've invested in reliable transportation services with advanced tracking capabilities to monitor the movement of equipment and address any disruptions promptly.Maintaining buffer stock has been essential, allowing us to navigate unexpected delays without compromising patient care or disrupting healthcare operations.
LikeLike
Celebrate
Support
Love
Insightful
Funny
2 Damages and losses
Another transportation risk in distribution logistics is damages and losses. These can occur due to various factors such as poor handling, inadequate packaging, theft, vandalism, accidents, or natural disasters. Damages and losses can affect the quality, quantity, and value of the products and cause customer complaints, returns, or claims. To mitigate this risk, you should ensure proper packaging and labeling of the products, use reliable and secure carriers, and insure the products against potential damages or losses. You should also inspect and verify the products before and after transportation and report any discrepancies or incidents.
Help others by sharing more (125 characters min.)
- Sajal Singh, MFin, CITP® FIBP® Logistics Manager | Master of Finance | CITP®|FIBP®
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
As per my experience, I would say the first and foremost would be, while loading the shipper and truck driver has to secure load according to the standards. The driver should use load bars and straps to secure loads. Also, keep in mind the skid count and how to properly allocate according to the weight. Another would be, at the warehouses or shipper location the forklift drivers should be cautious and proper packing should be done.
LikeLike
Celebrate
Support
Love
Insightful
Funny
3
- Jasper Balkenhol Boosting brands on commerce platforms and social media | Managing Director at eBazaaris
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
Careful packaging is essential to minimise damage and loss during distribution. Invest in high-quality packaging material that is adapted to the product in order to avoid transport damage. Use tracking systems to follow shipments on their way and identify potential risks at an early stage. Choose transport service providers with a good reputation and safety standards. Insurance cover for your goods is essential to cover financial losses. Implement quality controls before shipping and document the condition of the goods. This is particularly important in e-commerce, where customer expectations of delivery quality are high.
LikeLike
Celebrate
Support
Love
Insightful
Funny
1
- Sahil Gupta Director Sales and Solutions at Shipsy| Driving Manufacturing Optimization with AI/ML Solutions | Supply Chain and Logistics Expert
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
🚀 Transforming Logistics with Digital Solutions 🚀The logistics sector is rapidly evolving, and digital solutions are at the forefront of this transformation. Here's how technology is reshaping logistics:1 Real-Time Tracking: GPS & IoT for shipment visibility.2 AI Route Optimization: Efficient routing, saves time.3 Automated Inventory: RFID & barcodes reduce errors.4 Predictive Analytics: AI & Big Data for demand forecasting.5 Enhanced Customer Experience: Digital platforms offer instant updates and easy service access, improving satisfaction.Digital tools in logistics lead to improved efficiency, customer satisfaction, and a competitive edge in the market. #LogisticsInnovation #DigitalTransformation #EfficientSupplyChain 🌐💡📦
LikeLike
Celebrate
Support
Love
Insightful
Funny
- Leonardo Campos Diretor de logística, transporte, distribuição e Supply Chain
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
A parte de expedição das mercadorias é um dos momentos críticos que requer mais atenção e o uso de sistemas (wms) eficientes de conferência e de packing.Erro de envio tais como:Inversão de corInversão de voltagemQuantidade erradaEmbalagem mal acondicionada Etiqueta invertida em embalagemSão comuns e sem uma boa gestão só gera perdas, custos e retrabalho!Uma entrega não realizada ou realizada de forma divergente, trás uma cliente insatisfeito e um trabalho a ser refeito!Também temos um alto risco de roubo de cargas nas principais capitais e rodovias do país , trazendo prejuízos , atrasos e retrabalhos.Um bom gerenciamento de risco é importante em toda operação !
Translated
LikeLike
Celebrate
Support
Love
Insightful
Funny
- João Guia Costa Continuous Learner | Healthcare | Hospitality | Retail
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
Handling fragile and expensive medical equipment, such as diagnostic and imaging solutions, requires utmost care during transportation. Drawing from my experience, we've implemented stringent packaging and handling protocols, utilizing specialized materials to safeguard equipment integrity. Also, collaborating closely with transportation partners, we've ensured that proper handling procedures are followed throughout the shipping process to minimize the risk of damage or loss. These measures have proven effective in mitigating financial losses and preserving the quality of medical equipment upon arrival at healthcare facilities.
LikeLike
Celebrate
Support
Love
Insightful
Funny
3 Costs and inefficiencies
A third transportation risk in distribution logistics is costs and inefficiencies. These can occur due to various factors such as fuel prices, tariffs, taxes, fees, exchange rates, or demand fluctuations. Costs and inefficiencies can affect the profitability, competitiveness, and sustainability of distribution logistics. To mitigate this risk, you should optimize the transportation mode, route, and load, and negotiate the best rates and terms with the carriers. You should also use technology and data to analyze and improve the transportation performance and efficiency.
Help others by sharing more (125 characters min.)
-
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
The most important factor is to ensure that the fleet that is being deployed for transportation must be kept in top condition :-Servicing of vehicles on time.Repair and Maintenance. Vehicle Tracking SystemBack Up VehiclesIn desire to maximise deliveries and reduce turn around time often results in one of the above getting compromised. The cost a vehicle breakdown, delay in delivery, product damages and losses all of these have a hugely negative impact on Business.
LikeLike
Celebrate
Support
Love
Insightful
Funny
13
- Leonardo Campos Diretor de logística, transporte, distribuição e Supply Chain
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
Atualmente existem softwares que resolvem em grande parte as ineficiências das operações , diminuindo a necessidade de mão de obra, quantidade de veículos e até de emissão de carbono!O que devem ser entregues por estas ferramentas:- algoritmo com cálculo de giro da mercadoria para otimização de estoque no ponto de venda;- picking correto e eficaz;- packing que preservam o produto e otimizam espaço da embalagem;- roteirização eficaz dos delivery’s;- cubagem otimizada da carga;- diminuição da quilometragem rodada.Isto tudo mitiga a emissão de CO2 e faz com que a operação da distribuição seja mais eficaz evitando ré trabalhos e aumentando a capacidade produtiva.
Translated
LikeLike
Celebrate
Support
Love
Insightful
Funny
2
-
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
Safety first then cost competitiveness. Following the regulation is mandatory tobe fulfilled and selection of vendor who qualified and reputable handling is one of important thing. The proof of vehicles condition it should be considered to make sure it will suit for each cargoes.
LikeLike
Celebrate
Support
Love
Insightful
Funny
1
- Tabot Etienne Lache Logistics and Supply Chain Manager
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
- Fleet is the most important to operationally fit at anytime for services- Fuel consumption is at optimum- Periodic service maintenance for sustainability- Efficient drivers to adeplquately manage the opérations of the car
LikeLike
Celebrate
Support
Love
Insightful
Funny
- João Guia Costa Continuous Learner | Healthcare | Hospitality | Retail
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
Inefficient transportation processes can lead to increased costs and delays, impacting the timely delivery of medical equipment to healthcare facilities.Leveraging my expertise, we've optimized logistics practices by strategically planning shipping routes and consolidating shipments to minimize unnecessary expenses. Embracing technology solutions outsourcing for real-time tracking and monitoring has enabled us to identify and address inefficiencies promptly, improving overall operational efficiency.By implementing these measures, we've been able to streamline transportation processes and allocate resources more effectively, ultimately enhancing the accessibility of medical equipment in Angola.
LikeLike
Celebrate
Support
Love
Insightful
Funny
4 Compliance and liability
A fourth transportation risk in distribution logistics is compliance and liability. These can occur due to various factors such as legal regulations, environmental standards, safety rules, or contractual obligations. Compliance and liability can affect the reputation, credibility, and accountability of distribution logistics. To mitigate this risk, you should be aware of and follow the relevant laws and regulations in the origin and destination countries, and ensure that the carriers are also compliant and certified. You should also document and review the transportation contracts and agreements, and allocate the responsibilities and risks among the parties.
Help others by sharing more (125 characters min.)
- João Guia Costa Continuous Learner | Healthcare | Hospitality | Retail
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
Ensuring compliance with regulatory requirements and addressing liability concerns are paramount when transporting medical equipment internationally.Based on my experience, we've prioritized adherence to customs regulations and medical device standards in both Portugal and Angola, mitigating the risk of regulatory issues. Establishing comprehensive insurance coverage and contractual agreements with transportation partners has provided an additional layer of protection against potential liabilities.These proactive measures have helped mitigate compliance risks and liability concerns, ensuring smooth and legally compliant transportation of medical equipment to our healthcare partners.
LikeLike
Celebrate
Support
Love
Insightful
Funny
5 Security and privacy
A fifth transportation risk in distribution logistics is security and privacy. These can occur due to various factors such as cyberattacks, data breaches, fraud, or espionage. Security and privacy can affect the confidentiality, integrity, and availability of the information and data related to distribution logistics. To mitigate this risk, you should use encryption, authentication, and authorization techniques to protect the data and systems involved in transportation. You should also train and educate the staff and partners on the best practices and policies for data security and privacy.
Help others by sharing more (125 characters min.)
- Jasper Balkenhol Boosting brands on commerce platforms and social media | Managing Director at eBazaaris
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
To minimise security and data protection risks in distribution logistics, it is essential to implement strong encryption procedures. Ensure secure authentication and authorisation when accessing systems and data. Regular staff training on data protection and data security is crucial. Establish clear guidelines for handling sensitive data and carry out regular security audits. The protection of customer data is particularly important in e-commerce, which is why all platforms and interfaces to payment service providers should fulfil the highest security standards. Use proven tools and services that have been specially developed to secure online transactions and data transfers.
LikeLike
Celebrate
Support
Love
Insightful
Funny
2
Distribution Strategies
Distribution Strategies
+ Follow
Rate this article
We created this article with the help of AI. What do you think of it?
It’s great It’s not so great
Thanks for your feedback
Your feedback is private. Like or react to bring the conversation to your network.
Tell us more
Tell us why you didn’t like this article.
If you think something in this article goes against our Professional Community Policies, please let us know.
We appreciate you letting us know. Though we’re unable to respond directly, your feedback helps us improve this experience for everyone.
If you think this goes against our Professional Community Policies, please let us know.
More articles on Distribution Strategies
No more previous content
- How do you innovate and differentiate your direct distribution offerings?
- How do you leverage technology to reduce distribution costs? 6 contributions
- How do you choose the best distribution software for your logistics needs? 3 contributions
- How do you evaluate and select distribution partners and intermediaries? 6 contributions
- How do you optimize your distribution mix for different product categories and life cycles? 4 contributions
- What are the best practices for designing and implementing circular distribution strategies? 9 contributions
- How can you overcome the barriers and risks of circular distribution in different markets and contexts? 3 contributions
No more next content
More relevant reading
- Import/Export Operations What are the most effective ways to ensure logistics operations run smoothly?
- Logistics Management How can you trust your logistics partners?
- Import/Export Operations You're facing shipping carrier conflicts. How can you ensure cost-effective logistics?
- Logistics Management What is the best way to measure transportation lead time?