Sep 27, 2022

Omni Challenges As a New Challenges in Logistics Industry

  • By JANE R.,
  • 237 Views
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Omni Channel logistics is driving the economy of e-commerce because the 24-hour delivery system raises questions about the sustainability and consistency of businesses in the long run.

Will the omni-channel system get disrupted by more efficient technology, or will it evolve for the better?

With the increase in customers’ expectations from a business, it is essential to highlight the loopholes of omni-channel logistics.

What is Omni Channel Logistics?

Omni-channel creates a strong connection between inventory, distributor, and logistics. It is a concept that decentralizes supply chain management by creating cross-border networks. Logistic partner plays a pivotal role in the omni-channel model because it is the interlinking factor.

Be it a pick up from a warehouse or delivery at a customer’s doorstep – which brings everything together? Logistics partner is the center of the omni-channel business. There is no single shopping source for customers, and hence, the distribution channels are also increasing.

Let us find out what could create hurdles for omni-channel logistics.

What Could Go Wrong in Omni Channel Logistics?

There is no doubt that the last two years have given a reality check to the logistics department in every domain. E-commerce entirely depends on logistics for its efficiency, and here are possible challenges that came up in omni-channel logistics.

  • Improving the delivery efficiency without making it hard on customer’s pocket
  • Coping up with the hike in fuel price and keeping the business sustainable
  • Lack of workforce, i.e., drivers and labor to process the distribution
  • Adhering to regulatory norms laid down by the government authorities of different countries
  • Keeping the eco-friendly factor alive alongside meeting other challenges

That calls for extra preparedness to cope with the jolt in the coming years. The logistics department related to the omni-channel distribution network has many other loopholes that need proper attention.

Significant Challenges in Omni-Channel Logistics

Let us briefly look into each challenge related to omni-channel logistics.

Inability to Track Inventory

Businesses need to update their inventory to cater to the customers’ demands. For both distribution centers and retailers, inventory status plays an integral part in keeping up with the delivery promise of 24 hours.

A hassle-free logistic facility that can give insight into the shipments being carried from the warehouse will solve the problem more extensively. Developing proper communication with logistic partners and incorporating machine learning techniques will make inventory management easier for both parties.

Traditional Process Fulfillment

With several processes being digitalized, the manual intervention in the fulfillment of the order is the main reason behind the lag. The role of manually operated barcode scanners, updating the shipment tracking details, and task allocation hamper the productivity in the logistics department.

These practices need immediate reformation to keep the omni-channel optimized for customers. With such a level of manual intervention comes apparent delay in the fulfillment of orders, and the differentiating factor is lost. Not shifting from the traditional process also makes it hard to compete with other brands that are efficiently automating their system.

Poor Supply Chain Management

The biggest drawback in omni-channel logistics is managing the supply chain in an organized way. Many businesses are expanding their warehouses in different countries, and maintaining the connectivity between warehouse managers and logistic partner becomes challenging.

The supply chain becomes complicated with increased demand, and the absolute pressure falls on the logistics ecosystem. To ensure interoperability in cross-border supply chains, only advanced technology in logistics can eliminate the latencies.

Processing the Return Request

Imagine processing the reverse logistics smoothly in a situation where order fulfillment is so complicated. This issue causes a significant delay in delivering the order to a customer’s doorstep on time, but it is rarely highlighted.

Customers tend to judge a brand by the smoothness of processing a return or exchange of the order. The omni-channel logistics framework is still trying to adopt digital tools to make return requests more hassle-free.

Unorganized Digital Transformation

While digital transformation is at its peak, it becomes tough to synchronize physical transformation. For instance, a single truck cannot distribute to all the retailers or distribution centers.

This distribution system has become outdated for businesses looking forward to expanding to various distribution centers. To make things smoother for logistics, it is essential to redefine distribution strategies and meet customer satisfaction benchmarks.

Relying on Inefficient Freight Partners

There are multiple ways to fulfill the supply chain demand with the help of logistic partners. The challenging task is to find the right logistic partner that can play a crucial role in improving the pace of distribution.

Customers always track their packages and highlight the delay caused in receiving the parcel. It becomes essential to provide top-notch delivery service without escalating the product’s final cost for the end-user.

Overall affordability is what customer is focusing on these days.

Manual Interference in the Process

On the one hand, businesses are switching to drones, and on the other, there is still manual segregation. There is a massive gap because many businesses opt for a logistics partner that is not updated with their technology stack.

As much as it is necessary to manage the capital efficiently, it is also essential to keep the behavior consistent. Customers have the habit of trying out different options, and they can easily differentiate their experience with each trial.

Many supply chain businesses are on the verge of disruption because they don’t understand their customer’s requirements.

Conclusion

There is no doubt that supply chain management systems are evolving, as is the case with their logistic partners. Many businesses and brands are designing better strategies to create a seamless experience for their customers.

The only cause of concern is cross-border interoperability and improving technology to eliminate the manual errors from the scenario. The effort to achieve accuracy, enhance speed, and ensure convenience will give good results to omni-channel logistics.

 

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