Timely deliveries are crucial to keep supply chains running smoothly. A manufacturer cannot maintain peak output when they’re waiting for parts to arrive, and their productivity means little if their products don’t reach downstream partners and customers in time. Consequently, every organization must consider common shipping problems and how to avoid them.
While delays can arise from many factors, a few common culprits deserve more attention than others. Here are five of the biggest barriers to timely deliveries and what companies can do to overcome them.
1. Inefficient Routes
One of the most common shipping issues causing delays is suboptimal routing. Finding the path to complete the most deliveries in the shortest time is a complex, challenging process, so errors and missed opportunities are common. Using technology to highlight better alternatives can lead to significant improvements.
Artificial intelligence (AI) excels at analyzing complex relationships between data points, making it an ideal solution for this purpose. When UPS deployed AI route optimization software, it saved an average of 100 million miles per year. Of course, not every organization will see such massive savings, as not everyone has fleets so large. However, this outcome does set an impressive example of what this technology can do.
Remember that AI’s accuracy depends on having enough reliable data. Pairing it with data-generating technologies like Internet of Things (IoT) tracking and telematics systems will yield the best results.
2. Traffic and Other Unexpected Delays
Similarly, unexpected disruptions like traffic jams and inclement weather can delay shipments. Businesses may be unable to prevent such events, but they can mitigate their impact through AI and the IoT.
Real-time tracking solutions can provide the data necessary to detect emerging disruptions as they occur. Connecting IoT and telematics systems to AI routing software lets the AI analyze alternate routes to find quicker contingency plans. The model can then reroute drivers around the obstruction to ensure an efficient delivery.
Companies can also plan their operations assuming unexpected delays will occur. They may keep larger safety stocks of critical materials or give customers delivery estimates longer than what the 3PL will likely need. Steps like these may look inefficient initially, but the time and money they save by minimizing the impact of inevitable disruptions more than make up for the initial expense.
3. High Return Volumes
The reverse supply chain is another one of the most common shipping problems businesses encounter. Returns are surprisingly frequent in today’s market, and fitting these trips into an organization’s logistics operations reduces available truck space and slows everything down.
Many returns stem from damaged goods, so proper packaging protections significantly reduce reverse logistics concerns. All packages should ship with adequate cushioning to eliminate vibrations and absorb shocks from the road. Insulating against the elements is equally crucial, as even a little moisture can affect sensitive products. Silica gel is a popular and effective solution, as it can absorb roughly half its weight in water without expanding.
IoT temperature, humidity and shock sensors can help by alerting stakeholders of emerging issues in transit, informing timely adjustments to prevent damage. When returns do occur, AI routing software can calculate how to incorporate them into existing routes to streamline the process.
4. Warehouse Inefficiencies
Some common shipping issues happen before a shipment leaves the facility. Slow picking processes, loading bay bottlenecks and similar inefficiencies cause a ripple effect of delays, so it’s important to address them to achieve peak efficiency.
Switching to a digital warehouse management system (WMS) is a must if organizations haven’t already done so. Some facilities have seen a 70% increase in inventory accuracy and an 80% jump in product volume after implementing this system. These improvements stem from the WMS minimizing errors and boosting visibility by providing a single source of truth for all inventory considerations and automating routine processes.
Physical automation can also lead to substantial savings. Automated picking solutions are among the most impactful, as picking is often a warehouse’s least efficient workflow. Robotic loading arms and palletizing equipment are similarly beneficial.
5. Poor Visibility
On a larger scale, a lack of transparency is to blame for many shipping delays. Downstream supply chain partners are likely to grow impatient if they cannot track incoming deliveries. Manufacturers won’t schedule outgoing shipments effectively if they can’t see the rest of the supply chain.
Technology is once again the answer. IoT tracking solutions can provide real-time information on shipment locations and conditions throughout the supply chain. Compiling such data in cloud management platforms lets all parties access key insights quickly and use a common source of truth to reduce confusion.
Businesses that implement end-to-end visibility technologies are twice as likely to see no disruption from supply chain issues. Fostering their use across logistics networks will require communication and collaboration with multiple suppliers, customers and 3PLs, which can take time. However, the results benefit everyone involved, so installing these systems is worth the effort.
Address Common Shipping Problems Today
These five common shipping problems are responsible for many delays across supply chains. Businesses must focus their attention here before making smaller optimizations elsewhere. Once organizations overcome these obstacles, they can achieve far more efficient logistics processes.
