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Common Logistics Problems and How to Solve Them

Last Updated Aug 2, 2023

Even as the logistics industry continues to evolve and integrate innovative solutions into the global and local supply chains, there are still a few central challenges that tend to rear their ugly heads time after time. In this blog post we are going to take a look at a few of the most common logistics problems that the industry wrestles with, and how to circumvent their effects.

Want to make sure you aren't overlooking a critical step in jumping all the common logistics hurdles? Contact the team at Redwood Logistics to schedule your free consultation and let our logistics professionals show you how you can build a more resilient supply chain to face future logistics challenges.

Warehouse Management Errors

Try as we might to ensure that things are always running smoothly in warehouses and distribution centers, errors can still occur. Whether it’s a misplaced product, picking, packing, or shipping mistakes, incomplete orders, or damages to items during storing, human errors can become costly when they are not regulated. A clear way to reduce these kinds of errors is to make use of effective and updated warehouse management systems.

Incorporation of newer technologies, such as mobile apps for picking, automated picking and packing systems, voice picking, and more, create a system of checks throughout the process that can reduce errors and streamline processes. Assuring that warehouse staff is well-trained and that policies clearly state where and how the product is to be handled reduces the risk of injury or error as well.  

Delivery Delays

With factory shutdowns, port capacity issues, pandemic responses, labor strikes, piracy, protests, and any number of other disruptive events, the delivery of goods and products can be slowed or even left at a standstill. Such are the risks of a global supply chain, and so it’s vital to have diversified supply bases as well as alternate shipping routes as contingency plans for when troubles arise. Infrastructure issues can also cause slowdowns and delays, where ports struggle to process and service a large number of incoming shipments, and freight fleets are also affected by labor shortages and an increasing drop in available drivers.

Knowing these potential risks can cause delays, it’s imperative to plan accordingly. As the logistics world becomes more and more connected, it’s vital to stay abreast of technology solutions that will relieve some of these pressures. Micro-fulfillment centers, last-mile delivery focus, and cross-docking are some ways to save time when other parts of the supply chain are slowed.

Transportation Costs

Cutting transportation costs is almost always a key challenge in the logistics industry and one for which the solution is mostly out of the direct control of supply chain management. While fuel costs fluctuate according to the market and are often increasing, keeping transportation costs as low as possible requires creative solutions and thoughtful planning. Rising diesel fuel prices, fueling surcharges, escalating freight rates- these can seem insurmountable.

However, by consolidating shipments, and making the most use of any available space in transports, costs can be cut significantly. This requires open and effective communication with carriers. In some cases, reducing the number of carriers can make a difference as well. The simplest solution is to rely on a third-party logistics company to handle the transportation costs, as they have relationships with a variety of carriers and utilize a consolidation of shipments to reduce costs already. 

Fragmented Communication

With so many links in the logistics supply chain- from manufacturing to transport, production to distribution, and everything in between, snags are bound to happen. Finding and catching potential errors is critical, but can be difficult when there are so many places where communication can break down. This can be alleviated by the utilization of effective communication and visibility software systems, often integrated directly into warehouse management systems, and with available access to clients and partners. When everyone involved has access to the product as it moves through the various stages of production and distribution, including end-use customers expecting a delivery, issues are more easily resolved before they become real snafus. 

The key takeaway in seeking solutions to common logistics problems is having access to the right technology. The logistics field is always evolving and incorporating new forms of automation, tech solutions such as RedwoodConnect 2.0 , and software to ensure high visibility, constant communication, real-time responsiveness, and effective warehouse management. Making use of these forms of technological oversight is the way to overcome almost any logistics problem.

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Logistics is one of the most important aspects of any business. Logistical issues can cause major delays and problems for a company. In this blog post, we will be discussing the 10 most common problems in the logistics industry, and how to overcome them. We hope that this information will help you run your business more efficiently and effectively!

To avoid these problems entirely you may even consider hiring a third-party logistics service to manage your deliveries for you. For that, check out our guide on how to choose the right 3PL partner .

Here are the top ten most common logistical problems, and how to overcome them:

1. Rising fuel costs

One of the biggest challenges facing logistics companies is the ever-increasing cost of fuel. This can make it difficult to maintain profitability, and can even lead to some companies going out of business.

There are a few things you can do to help mitigate the impact of rising fuel costs:

• Use a routing optimization tool to find the most fuel-efficient route for your deliveries. Shorter routes and well-informed drivers can make a big difference in your overall fuel costs.
• Avoid idling, idle vehicles are burning fuel, and this can cost you up to a half-gallon of fuel per hour. It may seem small, but at a large scale, it can add up quickly.
• Use a fleet of fuel-efficient vehicles. Hybrid and electric vehicles are becoming more common every year, and for good reason. You can drastically reduce the amount you spend on fuel by switching your delivery vehicles to an electric alternative.
• Regularly maintain your fleet. Keeping your vehicles properly maintained, especially the engines, can lead to an average gas mileage increase of 4%. ( FuelEconomy.gov ) Again, it may seem small, but if maintained regularly it can and will save you a lot in the long term.

To remove the stress of fuel costs outsourcing your fleet may be the best option, but when should you outsource your fleet?

2. Lack of planning and forecasting

A lack of planning and forecasting can lead to an organizational nightmare. Without taking the appropriate steps and leveraging modern technology, companies are unable to predict demand or anticipate potential roadblocks. This can lead to disruptions in the supply chain and increased costs.

Implement effective planning and forecasting tools, and make sure that everyone in your company is using them. Utilize any data you have to your advantage, and always be prepared for the worst.

By planning ahead, and preparing your team for the potential challenges of the future, you’ll always be operating from a well-informed position. And will have the upper hand against your competition.

3. Inefficient employee management

In the logistics industry, you are constantly managing different teams in order to get the job done. This can be difficult, as you need to make sure that everyone is on the same page and working together efficiently.

There are a few things that you can do in order to overcome this challenge:

• Make sure that you have a well-defined process that everyone can follow. This will help to ensure that everyone is on the same page, and knows what their responsibilities are.
• Delegate tasks effectively. Not everyone is good at every task, so it’s important to delegate to the right individuals to keep things moving efficiently.
• Train your employees properly. This will help them to understand their responsibilities, and how to best work with the rest of the team.
• Communicate effectively. This is perhaps the most important thing that you can do in order to manage a team efficiently. Make sure that everyone is aware of what’s going on, and be clear about what your expectations are.

If you can effectively manage your employees, it will go a long way in overcoming logistical challenges.

How does Dropoff ensure efficient courier management?

4. Rising fleet maintenance costs

The cost of maintaining a fleet is on the rise, and this is putting pressure on logistics companies’ budgets. The average cost of maintenance per mile has increased by more than 20% in the last decade. This more than anything has contributed to the massive growth in outsourcing nationwide .

Here are a few ways to combat growing fleet maintenance costs:

• Invest in preventive maintenance: This will help catch small problems before they turn into big ones.
• Use telematics: Telematics can help you track your fleet’s performance and identify issues before they become a problem.
• Optimize your driving routes: This will help reduce wear and tear on your vehicles.
• Switch to synthetic oil: Synthetic oil lasts longer than a traditional oil, which means you’ll need to change it less often.
• Replace older vehicles: Older vehicles are more expensive to maintain and operate.

If you can effectively manage your fleet maintenance costs, you’ll be in a much better position to succeed in the logistics industry.

5. Poor communication between the customer and courier

Another common problem in the logistics industry is a lack of communication between the customer and courier. This can result in delays, miscommunications, and lost or damaged items.

To overcome this problem, it is important to have a clear and concise communication system in place. This could include a tracking system for shipments , regular updates from the courier, and clear delivery instructions from the customer.

Another way to overcome this problem is by building a relationship of trust with the customer. The courier should be able to communicate effectively and efficiently and be available when the customer needs them.

By establishing trust and communication, both parties can work together to resolve any issues that may arise.

6. Damaged goods during transit

Logistical problems most commonly arise when goods are being transported.

Transporting goods always comes with the risk of them getting damaged during transit, which can cause all sorts of headaches for companies on both sides of the process.

Here are a few ways to try and prevent damaged packages during transit:

• Use sturdy boxes and packaging that will protect the items during transport.
• Have a good system in place for checking the condition of goods when they arrive. If anything is damaged, it needs to be addressed as quickly as possible so that the customer isn’t affected.
• Make sure that your insurance is up to date and that you have a plan in place for dealing with damaged goods. When these unfortunate circumstances happen, being in a position to quickly address the issue ensures that you still create the best outcome for both sender and receiver.

7. Poor coordination for multiple deliveries

If your company is responsible for multiple deliveries, it’s important to have a system in place that allows you to keep track of all the moving parts. Poor coordination can lead to delays, missed deadlines, and unhappy customers.

One way to overcome this challenge is by using software that helps you manage your deliveries. Dropoff’s Logistics Management Platform is a great option for companies that need help coordinating their deliveries.

One of the most frustrating things about logistics is not knowing where your shipment is or when it will arrive. This can be a huge problem if you’re dealing with time-sensitive shipments, like medical supplies or food.

The good news is that there are now many tools available that can help you track your shipments and get visibility into the status of your delivery.

Tools like Dropoff’s shipment tracking feature give you real-time updates on the status of your package, so you can rest assured that your shipment is on track. With visibility into the status of your package, you’ll be able to plan for potential delays and avoid any costly surprises.

If you’re looking for a way to improve your logistical operations, use a shipment tracking tool. There are many available at this point, but choosing the right one can make a world of difference in the efficiency of your delivery process.

Dropoff has been working hard to overcome all the logistical problems and challenges faced by companies today.

We are committed to providing our customers with the best possible service, and our team of experts is always looking for new ways to improve things.

If you’re facing any logistical problem or challenge, Dropoff can help.

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• Written By Becker Logistics
• | November 25, 2020
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The Key to Problem Solving in the Logistics Industry

Problem solving in logistics is a challenge. There is a constant tug of war between the shippers and the carriers. Fights over detention, pick-up and drop-off times, and general invoice arguments. As a 3PL, it is up to you to make sure the shipping process goes smoothly and everyone leaves happy. This, however, can be quite the challenge since, in many cases, it appears that there’s going to be a winner and a loser. It is up to you to resolve this issue and make sure it is laid to rest.

If you are reading this then you’re probably wondering how you can start using effective problem solving in logistics. Well, you are in luck because the concepts are pretty simple, although they can be hard to implement right. So let’s get right into it, starting with number one:

Delivering bad news is never fun and often leads to anger. However, honesty is absolutely key to problem solving in logistics and, in fact, all problem solving! You cannot solve the problem by sweeping it under the rug. For example, if you have a carrier waiting to deliver a load you have to keep them in the loop. Keep them updated so that they can adjust their schedule and figure out what to do. If you are withholding knowledge or, even worse, being dishonest then the issue will only grow. Being honest is only the first step though, it is the start of the problem solving process. In order to move through the rest of the process, you are going to need coordination.

Coordination

Coordination is the summation of communication, hard work, and relation building. It is absolutely necessary for proper problem solving in logistics. It is a skill that should be developed by anyone that is dealing with shippers and carriers. When issues arise within a coordinated organization it can swiftly go from one person to the next, being chipped down piece by piece until it’s resolved. Without coordination, it is very easy for a problem to just get tossed aside and forgotten.

Having an actual process in place can really help with this. It is very beneficial if instructions are coming from the top on how to handle an array of problems.  This way every single person knows their role and knows what needs to be done in order to resolve the issue.  However, sometimes these processes can be slow and problem solving in logistics demand speedy resolutions. So, another way to improve the problem solving processes is with technology.

Technology makes problem solving much easier and, sometimes, can remove problems altogether. Having a new tool or software means being able to find and identify errors before they become an issue.  An example of this would be if the broker sees rising prices in a certain lane they can communicate this to the shipper so that they can start to plan accordingly rather than be suddenly surprised by an increase in their shipping spending.

Additionally, technology just makes all communication faster.  In the previous point we were talking about coordination, well sending an IM is a whole lot faster than a fax or carrier pigeon. So, it is important to ensure that these lines stay open and are being monitored. You don’t want to have all your customers’ calls going into an inbox. There are times, however, when even the best technology, team, coordination, and everything else won’t cut it.  In these cases, it is important to have a well-written contract.

For when all else fails, it is important to have a contract in place. Sometimes problem solving in logistics just comes to a standstill where no one will budge. In these situations, having a substantial contract in place can make things a whole lot easier.  At the very least it will force one side to take responsibility and then the matter can be put to rest.

Is Problem Solving in Logistics Ever Completed?

In short, no, there will always be issues that arise in shipping and logistics. There may be a point where we solve all of today’s issues. When that happens, however, we push to innovate and make the supply chain even better which of course leads to new problems. Because of this, flexibility may be the most important thing to have when problem solving in logistics.

Flexibility allows your organization to adapt to the issues that arise today as well as tomorrow. It’s needed to make those quick changes necessary to be successful. The ability to quickly find a new carrier to move a load while also adapting and developing new options for your carrier base. Also, to develop and adhere to new procedures that in the end help out everyone involved in the supply chain. At Becker Logistics, our associates are solving problems left and right as they come up.  Our team is experienced and flexible which means that they can resolve pretty much anything.  If you want to see if Becker Logistics is the right 3PL for you then reach out and contact-us or request a quote .

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Common Logistics Problems and How to Solve Them

• November 2, 2023

In the fast-paced world of logistics, challenges are bound to arise. From supply chain disruptions to communication breakdowns, every step of the process can present its own set of problems. However, with strategic planning and proactive measures, these issues can be anticipated and resolved efficiently. In this article, we will explore some of the most common logistics problems and provide practical solutions to help streamline your operations.

Supply Chain Disruptions

One of the most prevalent issues in logistics is supply chain disruptions. These can be caused by various factors such as natural disasters, geopolitical tensions, or unexpected surges in demand. To mitigate this problem, it’s crucial to have a well-diversified network of suppliers and logistics partners. By spreading your risk across multiple vendors and transportation routes, you can ensure that a disruption in one area won’t bring your entire operation to a halt.

Additionally, consider implementing a robust contingency plan that outlines alternative routes, backup suppliers, and clear communication protocols in case of emergencies. Regularly reviewing and updating this plan will help you stay prepared for unforeseen events.

Inefficient Inventory Management

Inefficient inventory management can lead to overstocking, stockouts, and increased carrying costs. Employing advanced inventory management systems and leveraging data analytics can provide valuable insights into demand patterns, allowing you to optimize stock levels. Additionally, adopting just-in-time inventory practices and implementing automated reorder triggers can help maintain an optimal balance between supply and demand.

Poor Communication

Effective communication is the lifeblood of any successful logistics operation. Miscommunication between stakeholders, including suppliers, carriers, and internal teams, can lead to delays and costly mistakes. To address this, consider implementing a centralized communication platform or a Transportation Management System (TMS) that allows real-time tracking, instant messaging, and status updates. Regular meetings, both internal and with external partners, can also help ensure everyone is on the same page.

Transportation Cost Overruns

Fluctuating fuel prices, unexpected surcharges, and inefficient route planning can all contribute to transportation cost overruns. To combat this problem, consider utilizing route optimization software to identify the most efficient routes and modes of transportation. Additionally, negotiate contracts with carriers that provide transparency on pricing and terms, and regularly review these agreements to ensure they remain competitive.

Regulatory Compliance Issues

The logistics industry is subject to a myriad of regulations and compliance standards, from customs documentation to safety requirements. Staying up-to-date with these regulations and ensuring full compliance is essential to avoid fines, delays, and disruptions. Invest in training and education for your team to ensure they are well-versed in the latest compliance standards. Additionally, consider partnering with a logistics provider with a proven track record of regulatory compliance to help navigate complex international logistics.

While the logistics industry is rife with challenges, proactively addressing common problems can lead to smoother operations, reduced costs, and improved customer satisfaction. By diversifying your supply chain, implementing efficient inventory management practices, prioritizing communication, optimizing transportation routes, and maintaining regulatory compliance, you can navigate the complex logistics landscape with confidence. Remember, continuous improvement and adaptability are key to staying ahead in this dynamic industry.

Your Trusted Partner

For more personalized guidance and expert support in optimizing your transport strategy, contact Red Arrow Logistics. Our team of logistics professionals is here to help you navigate the complexities of transportation and drive your supply chain success.

Red Arrow offers the scale and scope of services including air, ocean, and ground transportation to meet the budget and schedule requirements of the largest and smallest companies alike. If we can be of assistance, please email us at [email protected] or give us a call at 425-747-7914 .

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Supply chain optimization explained—with example

November 15, 2021 Anastasiya Malinovskaya

Creating and maintaining a result-oriented, efficient supply chain can be tricky since it brings together the procurement, production, transportation, sales, and financial sides of your business. This is where optimization can help.

In this article, we explore what ‘supply chain optimization‘ means, look at the typical supply chain management and optimization problems, and go through a practical example to learn how to solve those problems.

• What is supply chain optimization?
• Typical problems supply chain network optimization solves
• Example: Facility location problem and production planning

WHAT IS SUPPLY CHAIN OPTIMIZATION?

Many definitions of supply chain optimization exist but all generally fall into two categories:

• In the broad sense, the term refers to all kinds of processes that help improve supply chain performance and efficiency. It applies to managerial approaches, both quantitative and qualitative, that help make a supply chain more lean and agile, grow profit, and reduce costs.
• The narrower meaning of supply chain optimization focuses on a mathematical problem-solving method. Also called supply chain network optimization , this is a quantitative approach for finding the best combination of facilities, warehouses, the flows between them, production resource allocation, and other elements under specific constraints. Such optimization can solve large-scale data-intensive problems and uses mixed-integer and linear programming solvers (such as IBM ILOG CPLEX®).

In this article, we will focus on the narrower term, because it is the one that usually causes the most confusion, and we will show you how to perform supply chain network optimization .

Network optimization, as a quantitative approach, combined with management-based qualitative methods (case study research, action research, etc.) helps solve various supply chain challenges. Managers typically divide those challenges into three levels:

• Strategic issues include size and location of manufacturing plants or distribution centers, the structure of service networks, and supply chain design .
• Tactical issues include production , transportation, and inventory planning while balancing supply and demand.
• Operational issues address production scheduling and control, inventory control, and vehicle routing.

Optimization usually deals with the problems on the first two levels – strategic and tactical. Let us have a closer look at them.

TYPICAL PROBLEMS SOLVED WITH SUPPLY CHAIN NETWORK OPTIMIZATION

Supply chain design – Includes finding optimal locations for new facilities (distribution centers, warehouses, and plants), defining the flows between them, and balancing costs. An optimal supply chain design should be reliable, cost-efficient, and ready to deal with supply and demand uncertainty.

Master planning by period – Its goal is to align production, storage, and transport with demand fluctuations. When aligned, they help maximize a supply chain’s efficiency, cut costs, and increase profit.

Transportation – The objective is to transport products from one facility to another (from warehouses to customers, for example) while satisfying supply and demand and keeping the transportation costs at the lowest level.

Now let us see network optimization in action.

EXAMPLE: FACILITY LOCATION PROBLEM AND PRODUCTION PLANNING

From the supply chain network optimization example below, you will learn to:

• Find optimal locations for several distribution centers ( supply chain design problem ).
• Plan production and analyze demand fulfillment for the main and by-products ( master planning and production planning problems ).

Linear and mixed-integer programming are commonly used methods for solving supply chain optimization challenges. While many companies use MS Excel to implement these methods, we would like to show a more efficient and easier way to solve the same supply chain problems in anyLogistix software.

Sunflower Oil Supply Chain Model Description

A company acquires sunflower oil factories in several countries and wants to merge its supply chains. These are zero-waste factories that produce sunflower husk and pressed cake as by-products. The by-products are then further processed into fuel and animal food.

A supply chain network design for the model consists of Suppliers (which transfer raw materials to factories), Factories , Distribtion centers (DCs), Ports (used to transfer products by sea), and Customers . The screenshots below show this network’s structure and on-map view.

The supply chain’s on-map view (left) and its network’s structure (right) in anyLogistix supply chain optimization software (click to enlarge)

Main Characteristics of the Supply Chain Model

Distribution Centers, Factories, and Ports

• In total there are 14 potential DCs but we set a constraint that the optimizatior must only select up to 7.
• The maximum stock level and storage expenses differ for DCs, factories, and ports.
• Factories also have maximum monthly throughput of refined and unrefined sunflower oil – 4,000 and 2,000 tons respectively.
• Selling price and production cost differ for each product.
• Tariffs (customs duties) are considered. They are calculated when importing or exporting a certain number of products.
• By-products don’t have their own bills of materials (BOM) defined. But their production is set as a ratio of the main products and the by-products.

Production of the main and the by-products in the supply chain optimization model

We have a demand forecast for the next three years . The demand

• Is constant during the first year for all products;
• Increases for oil by 30% in August and September during the second and the third years;
• Decreases for pressed cake by 30% from April to October during the third year.

Demand also varies for each product. If demand fails to get fulfilled, penalties (or SLA violation fees) per product unit are charged.

• anyLogistix software uses online GIS map providers to identify real roads between supply chain facilities.
• Transportation costs are calculated according to distance travelled and transportation load .
• We use two vehicle types : trucks and container ships.
• Each vehicle type has certain capacity and speed values .

Why Do You Need Optimization in This Case?

The dilemma lies in the balance between demand and production for both the main products and by-products.

If we try to completely fulfill demand for the main products, we end up with too many by-products than required to meet demand and must therefore find storage for them, at a cost.

After running the scenario, we see that the demand for oil is completely fulfilled, however, inventory carrying costs for husk are charged

Alternatively, the company can choose to reduce the production volume . In this case, factories only produce a certain amount to avoid expenses for storing unsold main products. Average demand is fulfilled this way but demand peaks are not. Eventually, the company will have to pay SLA penalties.

After running the scenario, we see that while the average demand for oil is satisfied, the company fails to do that during demand fluctuations. As a result, SLA penalties are charged

Network optimization aims at finding the best configuration alternatives for our sunflower oil supply chain. While striving to reach the optimal balance between demand and production , it also considers our costs, penalties, and other constraints. For example, it takes into account the total amount of DCs that we can include in our network and the maximum throughput of the factories.

Statistics for the three supply chain optimization scenarios described earlier. Compare (Inventory) Carrying costs, Penalties, and Objectives (profit in US dollars)

Statistics for the three supply chain optimization scenarios described earlier. Compare Demand fulfillment (in %) and Penalties

Supply Chain Optimization Results

Running the network optimization experiment for the sunflower oil supply chain model in anyLogistix, provides several network configurations with detailed statistics.

For example, the statistics show that during the first modeled year, the demand for sunflower oil was completely satisfied, while for the by-products, it was only partially satisfied. Therefore, no penalties are charged for oil, as you can see in the table below.

During the first modeled year, the demand for sunflower oil was completely satisfied, while for the by-products, it was only partially satisfied

Producing additional batches to completely satisfy demand for the by-products would have created an excess of the main product. This, in turn, would result in extra storage costs and decrease supply chain operation profits.

The result of this supply chain optimization example is a three-year production plan that was calculated considering all constraints. This optimization example can be adapted and applied to your real supply chain tasks.

Together we have explored what supply chain optimization means and the problems it solves. Now what?

To start, download the the sunflower oil example and import it in anyLogistix Studio Edition (File → Import → Import Scenario from File or follow the guide ). Then explore the network structure, and examine the tables to see all the settings and parameters for the supply chain. Finally, you can run the optimization experiment in anyLogistix and analyze the results yourself.

If you don’t have anyLogistix Studio, we recommend you watch these short videos on related supply chain optimization topics and try the corresponding examples yourself in anyLogistix PLE for free .

Supply chain master planning

Learn how to organize a two-tier network and estimate the amount of product a cheese plant should produce each month.

See the example’s description in anyLogistix Documentation

Global network optimization

Discover how to organize a multi-tier network. The goal of this example is to find the best configuration of DCs while considering transportation, initial, carrying costs, and the list of locations where a company could build warehouses.

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Effective Logistics Problem Solving

iiseise,ogistics is a crucial aspect of efficient supply chain management. It encompasses the procurement and movement of materials, scheduling of personnel, and organization of manufacturing processes. These processes work together to convert inputs into finished goods that meet customer demand and generate revenue. Logistics, procurement, and supply chain professionals  must assure that all logistics and supply chain activities add value to customer and stakeholder portfolios:

The value must be the driving force of all activities an organization undertakes.  According to various experts, value has three characteristics.

• A physical transformation takes place, such as the conversion of raw materials to finished goods
• We perform all logistics and supply chain activities correctly the first time.
• The end-user or customer is willing to pay for these goods or services.

Through a careful analysis of an organization’s value-creating and value-enabling activities, we can uncover numerous problems and inefficiencies. These may include defects, inventory build-ups, customer dissatisfaction, errors, cost overruns, and process waste. The list goes on, highlighting the importance of identifying and addressing these issues to improve overall performance.

Logistics and Supply Chain Professionals must be proficient in Business Problem Solving. Two very powerful problem-solving methodologies are the DMAIC (Define, Measure, Analyze, Improve and Control) and PDCA (Plan, Do, Check, Act) Models.

The Define Phase

The Define Phase of the DMAIC process can be described in simple terms as such: “To have the team and its sponsor reach agreement on the scope, goals, and financial and performance targets for the project” (George, Maxey, Price, & Rowlands, 2005, p. 4).

The Measure Phase

The Measure Phase of the DMAIC Model is responsible for establishing the current state performance of a process. Verification should be done through a process of value stream mapping and capability measures. Identify and measure Key Performance Indicators (KPIs) and current process capabilities to depict the current state of performance.

Analyze Phase

Leverage the Analyze Phase of logistics problem-solving to understand the root causes of deviation from customer requirements and specifications.

Improve Phase

Likewise, in the Improve phase of the DMAIC problem-solving model, we verify critical outputs, design process improvements, and pilot new processes. Resulting outputs include newly defined KPIs, action plans for improvement, future state process maps, control plans, and associated new documentation. (Goetsch, 2013). The PDCA model can be leveraged in the Improve phase, where effective solutions are the plan, deployed, checked or verified.

Control Phase

The Control Phase focuses on ensuring that the improved processes continue to work well, produce desired outcomes, and maintain agreed-upon quality levels.  Standardization, Change Management, Response, and Counter Measure Management are crucial to this phase

Indeed, effective problem-solving is more than just a mindset or philosophy. It’s a powerful assembly of tools and know-how that no supply chain or logistics professional can function or lead without.

Effective logistics problem-solving requires a thorough understanding of the industry and the ability to address challenges that may arise.

Furthermore, as highlighted in  “ Qualified to Handle Your Company’s Logistics? Think Again! ” companies need to ensure that their logistics professionals possess the necessary skills and knowledge to handle the complexities of the job. With the right training and support, logistics professionals can identify and address issues in a timely and effective manner. Moreover, this will ensure that operations run smoothly and efficiently. By investing in the development of logistics professionals, companies can achieve significant cost savings and improve customer satisfaction.

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Join us on 30th April for a  deep dive into how Cloud EDI enhances your competitive advantage.

Solving Supply Chain Problems in the Logistics Industry

Supply chains across the world have been impacted by the challenges posed by the COVID-19 pandemic. In 2020 alone, up to 35% of companies experienced delays in cross-border transportation, along with a host of other issues. 1

This disruption magnified both old and modern supply chain challenges. As a result, the identification of effective solutions has gone from a back-of-house consideration to a priority for businesses across industries, logistics included. 

At Data Interchange , we’ve spent decades helping businesses overcome supply chain and supplier management challenges with Electronic Data Interchange (EDI). In this article, we will look at some common supply chain issues in the logistics industry and the solutions available to businesses. 

Let’s get started.

Suggested reading: Find out how you can gain a competitive advantage with EDI with our free eBook — The Supply Chain Centred Business

A lack of accuracy

Regardless of how smoothly a supply chain runs in theory, a lack of transparency can prevent the efficiency and performance levels necessary for prolonged success. This can arise from inaccurate or incomplete data across global supply chains, many of which were operating under challenging circumstances even before the pandemic.

Put simply, supply chain management processes will struggle to ensure high-quality products or efficient lead times if there are consistent inaccuracies reported in crucial processing data. These inaccuracies can emerge from:

• Product descriptions
• Product imagery
• Product specifications

For the logistics industry specifically, this is an issue that needs to be overcome to ensure accurate and on-time deliveries, particularly with customers that increasingly want to track shipments and get updates in real-time.

How EDI can help

By deploying an effective EDI solution, human errors that result in inaccurate data, like illegible handwriting, repeated manual errors and the loss of documents, can be permanently eliminated. As a result, the digitised sharing of supply chain documents that EDI facilitates is a cost-effective solution for increasing reporting accuracy and transparency across supply chains. 

Moreover, EDI’s ability to improve real-time communications is becoming imperative, ensuring that documents don’t quickly become outdated or irrelevant. Instead, accurate and up-to-date information is easier to access and maintain than ever before.

Trading partner relationships

In recent times, global supply chains have drastically enhanced the reach and profitability of trading partnerships. However, growing distances can also pose problems within these relationships. 

Issues such as logistical communication barriers, incompatible technology, and high levels of pressure in modern supply chains all have the potential to prevent the trust and efficiencies on which effective trading relationships ideally rest.

This is a significant problem within the logistics industry, hindering the benefits of effective supply chain management, which include:

• Reducing costs
• Aligning technologies 
• Open and honest communication 

In extreme cases, an inability to foster positive partner relationships can result in unfulfilled agreements, meaning that new suppliers have to be onboarded at higher than usual operational and monetary costs.

Effective communication that enables increased operational ease and transparency to all partners across the supply chain is fast becoming a supplier relationship management touchstone. EDI solutions are making this possible by streamlining transactions and communication through the seamless exchange of relevant business documents.

Modern EDI solutions are proving crucial in creating positive relationships across even the most complex logistics supply chains. As a result, deficiencies within legacy EDI systems, such as incompatible standards and complex onboarding processes, can finally become a thing of the past. These new, modern solutions offer smooth integrations with partners who have little or no EDI experience, thereby accelerating the seamless sharing of files across supply chains.

Limited supply chain visibility

Limited visibility can lead to a range of issues within logistics supply chains, including a lack of accuracy and difficult supplier relationships. This is an issue impacting businesses across industries, with one survey suggesting that 57% of companies have poor visibility across their supply chains. 2

Reduced visibility can be a particularly pressing issue when operations already have to contend with a range of other challenges. The result leaves a number of desirable supply chain outcomes out of reach, including:

• Risk foresight
• Positive partnerships
• Optimised inventory management
• Planned supply chain activities
• Resilient supplier management

At the most basic level, EDI is designed to deliver the smooth transfer of digital files throughout supply chains. The result is increased levels of visibility facilitated by enhanced communication, thereby driving continual improvement and long-term efficiency.

Whilst undoubtedly improving visibility, legacy EDI has its limitations. By comparison, modern EDI solutions make it easier for all partners to operate across global supply chains. These new solutions can provide real-time file transfers that offer a previously unattainable level of visibility, allowing supply chain managers to better understand how the supply chain operates, where improvements can be made to optimise outcomes and how to build resilience.

The struggle for efficiency

As businesses around the world learnt the hard way after the onset of the COVID-19 pandemic, efficiency across supply chains is fundamental to gaining a competitive advantage and, in some instances, just for survival. 

This was particularly true for the logistics industry, with one survey suggesting that 86% of respondents experienced a general downturn in business due to work or orders being cancelled in the early days of the pandemic. 3

From visibility to relationships and beyond, everything that you do within a supply chain is leading towards the ultimate goal of efficiency, the achievement of which can open the doors for not just exceptional functioning, but also the optimisation of everyday processes, such as:

• Request fulfilment
• Timely delivery
• Budget management

In light of the increasing focus on business continuity and flexibility, efficient processes that make it easier to forecast and react to real-time changes in demand and operation are imperative for success.

EDI has already proved pivotal in helping the logistics industry minimise the risks posed by inefficiency. This is primarily due to EDI’s ability to facilitate the seamless, real-time sharing of critical business documentation in real-time, regardless of the distance between suppliers and customers.

However, continually evolving customer expectations in logistics mean that EDI solutions themselves need to continue to develop. Customers are now increasingly expecting logistics partners to solve problems and help them drive growth, while delivery speeds are becoming more and more important to customers. 

That’s why modern EDI solutions are looking to help improve efficiency further within global supply chains with the help of:

• Access to data that helps facilitate improvements in forecasting, risk assessment and decision-making processes
• Smooth onboarding processes
• Holistic supply chain oversight

Modern solutions are available

Strict supplier deadlines and trading requirements across territories mean that the supply chain issues detailed above can cause significant disruption in the logistics industry. Legacy EDI solutions and in-house expertise have previously helped to mitigate these issues. However, legacy solutions are struggling to meet the demands of modern supply chains, and in-house experts aren’t equipped with the tools to meet strict SLA timelines.

In-house expertise is practically necessary to meet strict supplier demands but EDI teams aren’t always equipped with the tools necessary to meet them. In order to be able to fulfill supplier requirements from the moment of agreement, in-house EDI teams require the tools to fulfill requests in sharply reduced timelines.

At Data Interchange, we call this DiNet . Used by our own teams, our Value Added Network grants access to a library of mapping templates that can be utilised by in-house EDI teams. By accommodating a range of standards and protocols, this approach removes barriers to EDI adoption across supply chains, ensuring agile and productive relationships even when partners have specific requirements around EDI. With DiNet, businesses also benefit from cutting-edge EDI tools that go beyond traditional solutions and can obtain additional support from experts who act as an extension of their in house teams, enabling smooth integrations and enhanced visibility.

Learn more about how your organisation can overcome complex issues within the supply chain and gain an edge over the competition by talking to an expert today.

1 Impact of the coronavirus pandemic on supply chains across industries 2020 2 2019 Supply Chain Statistics | 10 More Shocking Figures 3 Logistics UK’s Coronavirus Logistics Impact Surveys

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AI Revolutionizes Complex Problem-Solving in Logistics and Beyond

By Adam Zewe, Massachusetts Institute of Technology December 17, 2023

Researchers from MIT and ETH Zurich have developed a machine learning-based technique to speed up the optimization process used by companies like FedEx for routing packages. This approach, which simplifies a key step in mixed-integer linear programming (MILP) solvers and tailors the process using a company’s own data, has resulted in a 30 to 70 percent increase in speed without sacrificing accuracy. It has potential applications in various industries facing complex resource-allocation problems.

A new, data-driven approach could lead to better solutions for tricky optimization problems like global package routing or power grid operation.

Researchers from MIT and ETH Zurich have developed a new, data-driven machine-learning technique that could be applied to many complex logistical challenges, such as package routing, vaccine distribution, and power grid management.

While Santa Claus may have a magical sleigh and nine plucky reindeer to help him deliver presents, for companies like FedEx, the optimization problem of efficiently routing holiday packages is so complicated that they often employ specialized software to find a solution.

This software, called a mixed-integer linear programming (MILP) solver, splits a massive optimization problem into smaller pieces and uses generic algorithms to try and find the best solution. However, the solver could take hours — or even days — to arrive at a solution.

The process is so onerous that a company often must stop the software partway through, accepting a solution that is not ideal but the best that could be generated in a set amount of time.

Researchers from MIT and ETH Zurich used machine learning to speed things up.

They identified a key intermediate step in MILP solvers that has so many potential solutions it takes an enormous amount of time to unravel, which slows the entire process. The researchers employed a filtering technique to simplify this step, then used machine learning to find the optimal solution for a specific type of problem.

Their data-driven approach enables a company to use its own data to tailor a general-purpose MILP solver to the problem at hand.

This new technique sped up MILP solvers between 30 and 70 percent, without any drop in accuracy . One could use this method to obtain an optimal solution more quickly or, for especially complex problems, a better solution in a tractable amount of time.

This approach could be used wherever MILP solvers are employed, such as by ride-hailing services, electric grid operators, vaccination distributors, or any entity faced with a thorny resource-allocation problem.

“Sometimes, in a field like optimization, it is very common for folks to think of solutions as either purely machine learning or purely classical. I am a firm believer that we want to get the best of both worlds, and this is a really strong instantiation of that hybrid approach,” says senior author Cathy Wu, the Gilbert W. Winslow Career Development Assistant Professor in Civil and Environmental Engineering (CEE), and a member of a member of the Laboratory for Information and Decision Systems (LIDS) and the Institute for Data, Systems, and Society (IDSS).

Wu wrote the paper with co-lead authors Sirui Li, an IDSS graduate student, and Wenbin Ouyang, a CEE graduate student; as well as Max Paulus, a graduate student at ETH Zurich. The research will be presented at the Conference on Neural Information Processing Systems.

Tough to Solve

MILP problems have an exponential number of potential solutions. For instance, say a traveling salesperson wants to find the shortest path to visit several cities and then return to their city of origin. If there are many cities which could be visited in any order, the number of potential solutions might be greater than the number of atoms in the universe.  

“These problems are called NP-hard, which means it is very unlikely there is an efficient algorithm to solve them. When the problem is big enough, we can only hope to achieve some suboptimal performance,” Wu explains.

An MILP solver employs an array of techniques and practical tricks that can achieve reasonable solutions in a tractable amount of time.

A typical solver uses a divide-and-conquer approach, first splitting the space of potential solutions into smaller pieces with a technique called branching. Then, the solver employs a technique called cutting to tighten up these smaller pieces so they can be searched faster.

Cutting uses a set of rules that tighten the search space without removing any feasible solutions. These rules are generated by a few dozen algorithms, known as separators, that have been created for different kinds of MILP problems. 

Wu and her team found that the process of identifying the ideal combination of separator algorithms to use is, in itself, a problem with an exponential number of solutions.

“Separator management is a core part of every solver, but this is an underappreciated aspect of the problem space. One of the contributions of this work is identifying the problem of separator management as a machine learning task to begin with,” she says.

Shrinking the Solution Space

She and her collaborators devised a filtering mechanism that reduces this separator search space from more than 130,000 potential combinations to around 20 options. This filtering mechanism draws on the principle of diminishing marginal returns, which says that the most benefit would come from a small set of algorithms, and adding additional algorithms won’t bring much extra improvement.

Then they use a machine-learning model to pick the best combination of algorithms from among the 20 remaining options.

This model is trained with a dataset specific to the user’s optimization problem, so it learns to choose algorithms that best suit the user’s particular task. Since a company like FedEx has solved routing problems many times before, using real data gleaned from past experience should lead to better solutions than starting from scratch each time.

The model’s iterative learning process, known as contextual bandits, a form of reinforcement learning, involves picking a potential solution, getting feedback on how good it was, and then trying again to find a better solution.

This data-driven approach accelerated MILP solvers between 30 and 70 percent without any drop in accuracy. Moreover, the speedup was similar when they applied it to a simpler, open-source solver and a more powerful, commercial solver.

In the future, Wu and her collaborators want to apply this approach to even more complex MILP problems, where gathering labeled data to train the model could be especially challenging. Perhaps they can train the model on a smaller dataset and then tweak it to tackle a much larger optimization problem, she says. The researchers are also interested in interpreting the learned model to better understand the effectiveness of different separator algorithms.

Reference: “Learning to Configure Separators in Branch-and-Cut” by Sirui Li, Wenbin Ouyang, Max B. Paulus and Cathy Wu, 8 November 2023, Mathematics > Optimization and Control . arXiv:2311.05650

This research is supported, in part, by Mathworks, the National Science Foundation (NSF), the MIT Amazon Science Hub, and MIT’s Research Support Committee.

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• 3 easy steps to solving complex logistics problems

by franklinadmin | Dec 16, 2021 | logistic | 0 comments

Do you have complex logistics problems hanging over your business? If you’re struggling to kickstart your business due to challenges holding you back in storage, transport, and fulfillment, look no further than the cleverly designed solutions that Franklin Logistics has to offer.

Based in Pennsylvania, Franklin Logistics is a company that envisions moving you forwards in the areas you are struggling with. You don’t need to be an expert in solving complex logistical problems – it’s time to destress and pass these tasks onto Franklin Logistics’ professional team with years of experience in approaching individual situations. This company takes on logistics problems by following a few easy steps, helping countless businesses in a range of industries get on their feet and impress an array of customers.

So, what do you need to do? Simply get in touch with Franklin Logistics and Development today and allow this incredibly reputable company to take care of your every need in solving complex logistics problems!

What is logistics?

Logistics in the business sector concerns the whole process of monitoring how resources are sourced, stored, and delivered to the desired location. Logistics is now commonly associated with manufacturing industries, referring to the handling and transportation of these products within the supply chain. Logistical problems come into play when business plans fail to account for something, often relating to the management or strategies used in a process.

Why is logistics important?

Logistics is important because it heavily contributes to the success of a supply chain, ultimately helping increase sales, profits, and customer loyalty. Dealing with the production, shipment, storage, and distribution of products and services ultimately encompasses the key elements of a product’s journey. So, executing these services in the right way can enhance your reputation as a business, improving your brand’s image of exemplary customer service.

Step 1: identify the problem

The first step that companies like Franklin Logistics take is identifying potential issues in business. This probably seems like common knowledge, but it is essential to the success of overcoming any potential logistical problems. Giving focus on the objective nature of a problem helps this company get a better sense of what they are dealing with and how to deal with it. Challenges in warehousing, transloading, transporting, and eCommerce and fulfillment are targeted. This includes problems in attempting to target struggles to meet customer demands across a wide range of areas, dealing with transportation costs, and considering environmental issues and regulations.

Step 2: Thinking about potential solutions to the problem

Franklin Logistics is well-practiced in thinking up innovative ideas to approach a range of problems in different industries. By generating a number of potential ideas for solving logistical problems, the company then breaks it down into problem-solving steps that can be taken one at a time. Various options can be useful in giving the company the freedom to explore different approaches and perspectives to help them decide on the best option available to them.

Step 3: Executing the solution to a problem

Franklin Logistics then works to execute solutions to the best of their ability concerning warehousing, transporting, transloading, and eCommerce and fulfillment. In this final stage, solutions are chosen and implemented, with low-risk solutions often being tried to begin with. The success of solutions is monitored at Franklin Logistics so that the company’s team is constantly working towards providing the best service available to customers. If a solution isn’t working too well, the team will then discuss alternative ideas to create a better solution.

This professional logistical problem-solving company has worked to offer a range of solutions concerning logistical problems which cover a whole wide range of industries. These supply chain solutions cover needs in the storing, transporting, and distributing of products to help ensure that your products are protected at every step of the way in their journey. These streamlined methods help companies approach logistical solutions with a new perspective, with Franklin Logistics constantly being ready for shifting focuses, altering unforeseen plans, and collaborating with new players to develop efficient plans.

So, whatever logistical problem you are struggling to solve, don’t waste time on the stress of coming up with options yourself when Franklin Logistics’ streamlined methods can provide you with the solutions you need in no time. With simple but efficient solutions driving the experience and expertise of this company forwards, you can put your faith in Franklin Logistics and follow the 3 easy steps to generate ultimate business success today.

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Content for Drivers

Solving Logistics Together

Solving Logistics Together is a Pace passion . As we celebrate our 25-year anniversary as a preferred Logistics Service Provider (LSP) and seasoned regional carrier, renewing and recalibrating that passion in today’s market is important.  As valued carriers in our regional transportation network, independent delivery drivers and fleet owners collaborate with us in logistics planning and provide the resources to execute these team-built plans.  

The final mile, as a component of collaborative logistics transportation planning, is very much in demand, but it is also ever-changing. Shippers need to find reliable final mile providers, and maintaining a strong pipeline for scenario planning is the key.   

Collaborative Logistics Planning = Solving Logistics Together

A lot of research has been done on the benefits of problem-solving with a team-based approach. As a result, many businesses utilize multi-disciplinary teams. In our industry, does working with final mile service providers collaboratively from the ground up produce better solutions?    

While logistics planning methodology often depends upon full-service supply chain management software, we can argue that this technology – with its advanced business intelligence and data analytics – paired with a solutions-based collaborative approach with your final mile solutions provider has the potential to unlock opportunities for better decision making and more positive logistical outcomes.   

Benefits of Collaboration in Logistics   

Benefits of collaboration are well documented. Albert Einstein relied heavily on collaboration with two friends from his student days, Marcel Grossmann and Michele Besso, to develop his theory of relativity. Good teamwork for the most part generates better solutions and strategies. The total knowledge and experience put into problem solving and planning is enhanced when a diverse, multi-disciplinary team puts their heads together.   

John J. Murphy, author of  Pulling Together: 10 Rules for High-Performance Teamwork says that “everyone has unique gifts, talents, and skills. When we bring them to the table and share them for a common purpose, it can give companies a real competitive advantage.”  

Scientific research reinforces the concept that many brains together are better than one. Dr. Patrick Laughlin, a researcher at the University of Illinois at Urbana-Champaign, says that “we found that groups in sizes of three, four, and five outperformed the best individuals. This performance is attributed to the ability of people to work together to generate and adopt correct responses, reject erroneous responses, and effectively process information.”  This curious concept follows the odd math behind the oft repeated equation that “1 +1=3.” Renowned advertising executive and author Dave Trott’s book titled One Plus One Equals Three speaks to creativity and the impact of tapping into the power of broad collaboration. “The more varied the input, the more unexpected the combinations, the more creative the ideas,” states Trott.   

Research on Collaboration   

Furthermore, other research backs the thesis that collaborative problem-solving leads to better outcomes.  The AMA 2012 Critical Skills Survey defined the skills necessary for effective collaboration:   

• Critical thinking and problem solving —the ability to make decisions, solve problems, and act as appropriate 
• Effective communication —the ability to synthesize and transmit your ideas both in written and oral formats 
• Collaboration and team building —the ability to work effectively with others, including those from diverse groups and with opposing points of view 
• Creativity and innovation —the ability to see what’s NOT there and make something happen 

Collaboration Between Shippers and Final Mile Providers   

So, collaboration between shippers and final mile providers can produce better results. It can also provide better security. A well-developed collaborative partnership can help to strengthen a vulnerable supply chain. As major macroeconomic factors such as pandemic shutdowns, labor shortages, inflation, and increased consumer demand have stressed an already fragile supply chain to never before seen levels , it is more important than ever to develop mutually beneficial solutions among trusted partners.  

Shippers and final mile providers who collaborate in developing effective logistics strategies are stronger together. They can trust each other, assured that every member of the team is doing their part to get the job done. They can depend on one another to step in and help when needed, to solve unexpected problems, and work with each other to anticipate future needs while crafting robust strategies to prepare for any contingency.  

Shippers and final mile transportation providers who practice solving logistics together discover the benefits of learning together as well. The shipper can see the process through the final mile provider’s eyes, and the final milers can listen and better understand the shipper’s goals, issues, and concerns. A synchronized plan is underway.   

Successful collaborative problem-solving results from the melding of the distinct skills and expertise of each group member, generating a broader range of viewpoints and knowledge to apply toward tackling each issue. The wider range of backgrounds and experiences between shippers and carriers, the better. The broader the perspective, the more impactful the plan.   

Great listening skills and keeping an open mind are paramount toward arriving at better solutions and without a doubt can produce a stronger bond between shippers and final mile providers.   

Strength Through Collaboration is a Competitive Advantage   

In a business climate that is constantly changing, strength and flexibility are competitive advantages, producing continuous gains over time. A nimble company, fortified with strong partnerships, is better protected against competitors, market forces, and a world of uncertainties. The advantages of effective collaboration are many, but the reality is that collaboration isn’t just nice – it’s necessary. As our friend Albert has demonstrated, no single person or organization can solve every problem on their own. Even the most brilliant minds in the world work better when they work together.   

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What does a logistician do?

Would you make a good logistician? Take our career test and find your match with over 800 careers.

What is a Logistician?

A logistician specializes in the management and coordination of the flow of goods, services, and information within an organization or supply chain. They are responsible for overseeing the entire logistics process, from sourcing and procurement to distribution and delivery. Logisticians work to ensure that products or services are efficiently transported and delivered to the right place, at the right time, and in the right quantity. They analyze and optimize various aspects of the supply chain, such as inventory levels, transportation routes, and storage facilities, to maximize efficiency and minimize costs.

In addition to operational tasks, logisticians also play a strategic role within organizations. They collaborate with internal teams, such as procurement, manufacturing, and sales, to align logistics activities with overall business objectives. Logisticians are skilled in utilizing data analysis and forecasting techniques to anticipate demand, plan for contingencies, and optimize supply chain processes. They also stay updated with industry trends and advancements in logistics technology to leverage innovative solutions that enhance operational efficiency and responsiveness.

What does a Logistician do?

Logisticians are key contributors to ensuring the smooth functioning of supply chains, enabling organizations to meet customer demands and achieve their business goals.

Duties and Responsibilities The duties and responsibilities of a logistician can vary depending on the specific role and industry. However, here are some common responsibilities associated with the role of a logistician:

• Planning and Coordination: Logisticians are responsible for developing and implementing logistics plans to ensure the smooth flow of goods, services, and information. They coordinate with various stakeholders, including suppliers, manufacturers, transportation providers, and customers, to establish effective logistics processes and schedules.
• Supply Chain Management: Logisticians manage the entire supply chain, from sourcing raw materials to delivering finished products. They monitor inventory levels, forecast demand, and ensure that materials and products are available when needed. They collaborate with suppliers to negotiate contracts, monitor quality, and maintain positive relationships.
• Transportation and Distribution: Logisticians oversee the transportation and distribution of goods. They determine the most efficient and cost-effective transportation methods, select carriers or logistics service providers, and track shipments to ensure on-time delivery. They may also handle customs documentation and compliance for international shipments.
• Inventory Management: Logisticians manage inventory levels to meet customer demands while minimizing costs. They analyze sales and demand patterns, maintain stock levels, and implement inventory control measures such as just-in-time (JIT) or lean inventory management techniques. They also monitor product quality and manage returns or recalls, if necessary.
• Logistics Technology and Systems: Logisticians utilize logistics software and information systems to track shipments, manage inventory, and analyze data. They stay updated with advancements in logistics technology and leverage tools such as enterprise resource planning (ERP) systems, transportation management systems (TMS), or warehouse management systems (WMS) to optimize operations.
• Risk Management and Problem Solving: Logisticians identify and mitigate potential risks in the supply chain. They develop contingency plans for disruptions, such as natural disasters or transportation delays, and implement strategies to minimize their impact. They are skilled in problem-solving, troubleshooting logistics issues, and finding solutions to ensure the smooth operation of the supply chain.
• Continuous Improvement: Logisticians actively seek opportunities for process improvement and cost reduction within the logistics function. They analyze data and performance metrics, identify areas of inefficiency, and propose and implement changes to enhance operations. They also stay updated with industry best practices and trends to drive continuous improvement.

Types of Logisticians There are various types of logisticians, each specializing in different aspects of logistics management. Here are some common types of logisticians:

• Supply Chain Analyst: Supply chain analysts focus on analyzing and optimizing supply chain processes. They gather and analyze data related to inventory levels, transportation costs, demand forecasting, and supplier performance. Supply chain analysts use this information to identify inefficiencies, recommend process improvements, and develop strategies for cost reduction and performance enhancement.
• Inventory Control Specialist: Inventory control specialists are responsible for managing and maintaining optimal inventory levels. They monitor inventory levels, analyze demand patterns, and coordinate with suppliers to ensure timely replenishment. Inventory control specialists use various techniques, such as just-in-time (JIT) inventory management or economic order quantity (EOQ) models, to minimize holding costs while meeting customer demands.
• Transportation Manager: Transportation managers oversee the planning and execution of transportation activities within the supply chain. They select carriers or transportation service providers, negotiate contracts, and coordinate the movement of goods from suppliers to customers. Transportation managers optimize transportation routes, manage logistics documentation, and monitor carrier performance to ensure timely and cost-effective delivery.
• Warehouse Manager: Warehouse managers are responsible for the efficient operation of warehouses or distribution centers. They oversee receiving, storage, and shipping activities. Warehouse managers develop warehouse layouts, implement inventory control systems, and optimize warehouse processes to minimize costs, improve productivity, and ensure accurate order fulfillment.
• Procurement Specialist: Procurement specialists focus on the sourcing and procurement of materials, products, and services. They identify and evaluate potential suppliers, negotiate contracts, and manage supplier relationships. Procurement specialists ensure that goods and services are procured at competitive prices while meeting quality standards and delivery requirements.
• Reverse Logistics Specialist: Reverse logistics specialists manage the flow of products or materials back through the supply chain, such as for returns, repairs, or recycling. They develop processes and systems to handle reverse logistics efficiently, including product returns, warranty management, and disposal or recycling programs. Reverse logistics specialists aim to minimize costs and environmental impact while maintaining customer satisfaction.

Are you suited to be a logistician?

Logisticians have distinct personalities . They tend to be enterprising individuals, which means they’re adventurous, ambitious, assertive, extroverted, energetic, enthusiastic, confident, and optimistic. They are dominant, persuasive, and motivational. Some of them are also conventional, meaning they’re conscientious and conservative.

Does this sound like you? Take our free career test to find out if logistician is one of your top career matches.

What is the workplace of a Logistician like?

Logisticians can work in a wide range of settings, including manufacturing companies, retail organizations, logistics service providers, government agencies, and consulting firms. Here is a description of some typical work environments for logisticians:

Office Environment: Many logisticians work in office settings, where they spend a significant amount of their time analyzing data, coordinating logistics operations, and communicating with stakeholders. They utilize various software and information systems to track shipments, manage inventory, and analyze logistics performance. In the office, logisticians collaborate with colleagues, such as procurement teams, sales representatives, or transportation managers, to ensure smooth logistics operations. They attend meetings, prepare reports, and strategize on improving supply chain efficiency.

Warehouse or Distribution Center: Logisticians may also work in warehouse or distribution center environments, especially if they are responsible for managing inventory or overseeing order fulfillment. In these settings, they oversee the receiving, storage, and shipping of goods, ensuring efficient material handling and timely delivery. They may work closely with warehouse staff, supervisors, and forklift operators to manage inventory levels, optimize storage space, and coordinate order processing. Logisticians in this environment may also monitor inventory accuracy, implement quality control measures, and ensure compliance with safety regulations.

Field or Operational Settings: Depending on the nature of their role, logisticians may spend time in the field or operational environments. For example, transportation managers or logistics coordinators may visit transportation hubs, ports, or manufacturing facilities to coordinate shipments, monitor logistics operations, and assess the efficiency of transportation networks. They may also be involved in overseeing logistics activities during special events, emergency response situations, or military operations. Field settings may require travel and on-site presence to ensure smooth logistics operations and address any unforeseen challenges that arise.

Logisticians often work collaboratively with cross-functional teams, including procurement, manufacturing, sales, and customer service departments. They may interact with suppliers, carriers, customs officials, and other external stakeholders to ensure effective coordination of logistics activities. The workplace of a logistician can involve a mix of office-based work, collaboration with colleagues, and occasional field visits. The nature of their work often requires strong analytical and problem-solving skills, effective communication, and the ability to work in fast-paced and dynamic environments.

Logisticians are also known as: Logistics Specialist Logistics Analyst

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Career Solutions: Hiring a Logistics Problem Solver

Executives and recruiters in the supply chain industry spend a lot of time interviewing prospective employees. And while many logistics candidates look good on paper, their resumes don’t always reveal the level of problem-solving skills they possess.

Companies need to hire logistics problem-solvers—people who can walk into an operation and help make its problems disappear. It is management’s job to bring these people into the organization. Finding problem-solvers by making the right hiring decisions is crucial for keeping your supply chain on track. But is it easier said than done? Not if you know what to look for.

A Shared Philosophy

Every management team aims to improve shareholder equity returns, and this can only be accomplished through revenue growth, efficiency improvements, and capital optimization.

Make sure you know which of these strategies is of the greatest importance to your company, and be prepared to recruit from firms that share your supply chain philosophy, even if they’re not in your industry.

For example, if your company’s strategy is to grow sales through constant new product introductions, it might make more sense to recruit from Merck or Honda than from Wal-Mart.

Job candidates may have enjoyed successful careers within the industry, but their logistics philosophies may not match up with your company’s. Imitation—while an excellent form of flattery—is a lousy form of strategy.

A logistics executive’s supply chain philosophy is no small matter, and it can tangibly impact how that executive meshes with your company’s internal accounting, information technology, manufacturing, marketing, sales, and other departments. It can also significantly affect their relationships with your company’s customers, outsourcing partners, and vendors.

Once you have decided which target companies share your supply chain philosophy, decide specifically what problem(s) you want a new employee to solve in the first 90, 180, and 360 days.

Having a clear picture of what type of candidate—and what logistics philosophy—best serves your company’s needs puts you in a better position to find the right problem-solver during an interview.

The Seven-Step Approach

When solving problems—whether in “real life” or in a job interview—it is important to follow a logical process. Indeed, most business problems are not solved because people don’t clearly define the problem.

A good way to gauge the strength of candidates’ problem-solving abilities is to walk them through the following seven-step framework, while they describe a specific problem they solved in their last job.

It is crucial to look for applicants who demonstrate an ability to do these seven things:

1. Define the problem. Have candidates identify the problem by including both a cause and an effect. This is the time to infer whether or not candidates can think holistically about your company’s supply chain, and to assess whether they have a push or a pull orientation toward supply chain management.

2. Define the objectives. Ask candidates to explain their desired outcome. What did they want to achieve as a result of solving the problem?

3. Generate alternatives. Evaluate the alternative plans each candidate generated. How many alternatives did they come up with? Did the quality of the alternatives vary greatly? Was there a significant difference in the hard and soft costs associated with each idea? This is helpful for assessing the candidates’ creativity and resourcefulness as problem solvers.

4. Develop an action plan. Usually, for an action plan to be effective, several steps must be taken over a period of time. Have candidates recap their action plans, and evaluate how detailed the plans were. Did they specify who did what? And by what dates? Detailed problem-solvers are more effective than generalists.

5. Troubleshoot. Give candidates the opportunity to recap worst-case scenarios. What could have gone wrong in their plan? What might the side effects have been? How did they ensure the plan’s effectiveness? Were there any unintended consequences?

6. Communicate. Getting information to the right people is key to making any action plan a success. Have candidates discuss which individuals or groups affected the success of their action plan. Do they explain who was impacted by it and who needed to be informed? How did they communicate with relevant parties? The most effective executives are those who can communicate clearly.

7. Implement. Have the candidate explain who carried out the plan and monitored its implementation. Who was accountable for each part of the solution? What were the consequences for failure to meet the plan? As a manager, will the candidate be hard on the issues and soft on the people?

Predicting the Future

Drilling down on how candidates have solved problems in the past gives you a good idea of how they will solve problems in the future. Knowing what type of problem-solver candidates are helps you evaluate what type of impact they will have on your company.

During the interview, think in terms of the quality, consistency, and costs of candidates’ solutions. You must get them to be specific about their problem-solving experiences. Minimize the chances of being duped by having candidates recap in vivid detail exactly what happened in a given situation.

Think as a child would: ask “why?” or “how?” to everything candidates say. If you don’t challenge them during the interview process, you may pay a steep price later.

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Solving Logistics Problems with Data Series: How to Reduce Shipping Costs

Welcome to our series on solving logistics problems with data. In this post, we share a real-life example of how data and analytics helped a customer reduce shipping costs and solve their problem of paying carriers on time.

The first step in reducing shipping costs is to understand what influences the cost. Shipping costs are always determined by the same four characteristics: distance, density, shipment size, and speed. When a shipper has a clear picture of their four characteristics, they now have a way to understand their costs. This is when they can see that there are some profit leaks, most generally due to outdated rules and the use of the incorrect carrier on some lanes.

Analytics Reveal Faulty Logic

After the data reveals profit leaks, how can shippers determine if they are spending too much in the first place? The answer is analytics. Analytics makes the data actionable . Analytics exposes the number of excuses or justification statements a shipper uses when explaining their shipping rules. Statements like “I have to use this carrier because they’re the only one that knows how to haul in this lane correctly” or “I’ve tried other carriers and they just didn’t get it right” oftentimes reflect rules that were put in place many years ago. As these excuses pass down from person to person without question, the faulty logic persists.

Analytics Untangles Tactical Problems

Many times, a company will become a customer of RateLinx because there is a tactical problem they can’t solve. For example, one of our customers was having an issue paying their carriers on time. To the customer, it appeared that they had hundreds of problems that were preventing them from paying freight bills. Sometimes, the dollar amount on the invoice for a given carrier would match their contracted rate and other times not. Sometimes they would get invoices from a carrier and their system didn’t have a rate for the carrier. With all these seemingly unrelated variables, they didn’t know where to begin to solve the problems.

In this situation, we started with PayLinx Intelligent Invoice Management (IIM) . This is how we were able to quickly and easily diagnose the issue. We contacted the carriers and had the freight invoice (EDI 210) transmitted to IIM. IIM then standardized and cleansed the data, and transmitted a clean freight invoice (EDI 210) back to the customer for payment. We receive the data needed to diagnose the problem, with no internal IT resources needed from the customer. Once the data was flowing, we turned on analytics, enabling collaboration with the customer and the carrier for a solution.

Define the Problem Correctly, then Solve

To find the correct solution, you must first define the problem correctly. We wrote about the consequences of solving the wrong problem here. Through analytics, we found three problems to address:

• Miles calculated incorrectly by the carrier,
• Tender passed to the carrier was incomplete, and
• Out-of-date addresses used by both the carrier and shipper.

Once we understood the root cause of the problems, we developed and deployed strategies to solve them.

• The first issue was solved by talking to the carriers and tell them the exact setting they had wrong on their mileage calculation.
• Second, the solution was to update the tender record (EDI 204) that was being transmitted from the TMS to the carrier so it had complete instructions for the given shipment.
• The solution to the third issue was to have the master data in the TMS, and the carrier’s system updated with the right addresses.

Analytics Reveals Unknown Problems too

With the analytics turned on, we also found a fourth issue that the customer didn’t know they had: incorrect routings. There were certain customer locations that were using an outdated routing guide for some lanes. By having all the locations use the latest routing guide, the customer prevented freight invoices from entering their system that did not have a rate which meant they were able to leverage the right carrier with a lower cost.

Overall, the solution saved the customer about 5% on freight costs with zero internal IT resources required. Now the company has standardized and cleansed data they can leverage to diagnose the next issue, develop a strategy, and deploy it for the next round of freight savings.

We hope you enjoy this series: Solving Logistics Problems with Data. A few weeks ago, we discussed solving noncompliance and business rules logistics problems with data , another common logistics problem we solve through our analytics. If you would like to have our blogs articles delivered to your inbox, subscribe here .

Or if you’d like to talk about how we might help you reduce shipping costs through actionable data, please reach out .

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Warehousing puzzle: which baby needs changing.

Do what we’ve been doing as long as we’ve been doing it, and sometimes you can feel like you’ve seen it all. Fact is, every client and job is different. Can you tell which of the below is unique?

See the Answer

With global sales in the billions, Kimberly Clark’s demand spikes are just a fact of life. So when KC calls us and asks if they can send in 200-300 truckloads tomorrow, we’re never surprised. What we are is immediately responsive, either clearing or finding the space every time we’ve been asked. Because, the reality of the situation is, whether it’s tissue paper, towels, or diapers, when stuff’s gotta go, it’s gotta go.

Warehousing Puzzle: Space Out of Nowhere

One of our favorite pastimes is handling a space crisis quick, fast, in a hurry. See if you can create some extra space above by moving three lines to make 7 boxes out of the 5.

A major manufacturer of household cleaners was consolidating one of its facilities near Augusta. Unfortunately, their warehouse was not ready for the additional inventory, and they were beginning to have problems fulfilling orders due to space, labor, and trucking shortages. Within two hours of a phone call, we had our trucks at the manufacturer’s facility and, for the next four weeks, handled the warehouse over-flow until the consolidated facility was up and running.

Freight Services Puzzle: In the Eye of The Storm

One thing we’ve learned from being in this business forever is that the devil fools with the best laid plans. Case in point – the weather. See if you can deal with it and bring this shipment home. Don’t draw on your screen.

When product comes from overseas, the situation can be a lot different from the time it leaves until the time it arrives. One really nasty example of this was Hurricane Katrina. When Henry P. Thompson’s tea shipment left, all was clear. However, as it approached its destination in NOLA, it was obvious that was no longer a viable port. Within days, RBW worked with HPT to reroute to our facilities, saving our client from dealing with the storm by avoiding it altogether.

Puzzle #2: One Smart Move

With freight services, it’s all about making the most out of your moves. See if you can, moving only 1 bucket, make the pattern above alternate between full and empty buckets.

Going international can not only take you out of country, it can also take you out of your area of expertise. One of our customers recently experienced a big boom, which entailed exporting 90 containers per month around the world. Unfamiliar with navigating the export waters, they weren’t aware that getting over-weight permits and cubing out their containers was an option. RBW worked with the customer and the Georgia Port Authority to reduce the load, saving the happy, and more efficient, customer a bundle.

Freight Services Puzzle: Let’s Turn This Thing Around

In the logistics business, sometimes you gotta turn things around in one heck of a hurry. See if you can, moving only 3 batteries, get this shipment pointed in the opposite direction.

After a battery manufacturer had scheduled a load of their product to be delivered to Augusta, GA, they suddenly realized they needed to coordinate delivery with pick-up at a different location. Without missing a beat (or the deadline), RBW was able to make the change and report back pick-up and delivery times to the customer. It’s a perfect example of how empowered staff and strong client relationships can make the difference in a seemingly impossible turnaround.

Value Added Services Puzzle: Breaking Down The Boxes

RBW handles lots of bulk everything, as you can imagine. Often we take 1 big thing and break it down into lots of little ones for our partners. See if you can make 3 equal boxes moving only 3 lines.

Promotional mailers and catalogs require a tremendous amount of supply chain coordination. Didn’t know if you were aware of that, but they do. Retailers who practice mass mailing often “staff up” to handle their spikes in business immediately after their materials hit customers. Therefore, timing in these instances, is everything. RBW handles storage of catalogs and outbound logistics to ensure that our customers hit their customers at exactly the right time.

Value-Added Services Puzzle: A Logistical Impossibility?

We’re in our fourth generation of family ownership at RBW Logistics, so we’ve had to move a lot of stuff. See if you can move only two bars to make another glass which the tea bag is outside of.

Just like the solution to this puzzle, sometimes pushing your business forward simply requires making a few smart moves. While we were warehousing tea for Henry P. Thomson, they began to expand their product lines to offer more exotic mixes of tea. Rather than ship the tea to a secondary location, Henry P. Thomson built a custom tea-blending machine at our facility and outsources blending duties to us. We fondly refer to the machine as “Mr. Tea.” The result: increased profitability for HPT and 40,000 lbs. of tea blending a day for RBW.

Supplier-Pull Management TM Puzzle: Keep Everything Balanced

Logistics demands precise measurement of receipts, deliveries, and inventory. Your challenge: determine how many clubs, diamonds, or spades it takes to bring balance to the last scale.

That’s big, fancy industry jargon for making sure our customers have what they need when they need it. That, and having the field-vision to see the supply problems coming. At RBW, we began handling this responsibility for Textron Specialized Vehicles to ensure their golf cart production lines never go down, saving them astronomical cost. Since then, this concept has been embraced by other RBW customers who let us be the strong link in their supply chain.

Quality Control Puzzle: Rounding Up & Recycling

At RBW Logistics, we’re all about efficiency. That, and the creative problem solving akin to what you’ll need here. See if you can connect all the trees by using only four straight lines.

Nylon-6 fiber, know what that is? We didn’t either, until Shaw Carpet told us about their logistical problems in handling its recycling. Nylon-6 fiber, when recycled, is indistinguishable from virgin N-6 product, from which most carpets are made. Shaw operates the only Evergreen Nylon Recycling Center in the world. RBW handles all inbound carpets for reuse, making sure fiber and moisture content are acceptable, and removing all debris and metal objects prior to sending the clean materials to Shaw.

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Semiconductors at scale: New processor achieves remarkable speedup in problem solving

A nnealing processors are designed specifically for addressing combinatorial optimization problems, where the task is to find the best solution from a finite set of possibilities. This holds implications for practical applications in logistics, resource allocation, and the discovery of drugs and materials.

In the context of CMOS (a type of semiconductor technology), it is necessary for the components of annealing processors to be fully "coupled." However, the complexity of this coupling directly affects the scalability of the processors.

In a new IEEE Access study led by Professor Takayuki Kawahara from Tokyo University of Science, researchers have developed and successfully tested a scalable processor that divides the calculation into multiple LSI chips. The innovation was also presented in IEEE 22nd World Symposium on Applied Machine Intelligence and Informatics (SAMI 2024) on 25 January 2024.

According to Prof. Kawahara, "We want to achieve advanced information processing directly at the edge, rather than in the cloud or performing preprocessing at the edge for the cloud. Using the unique processing architecture announced by the Tokyo University of Science in 2020, we have realized a fully coupled LSI (Large Scale Integration) on one chip using 28nm CMOS technology. Furthermore, we devised a scalable method with parallel-operating chips and demonstrated its feasibility using FPGAs (Field-Programmable Gate Arrays) in 2022."

The team created a scalable annealing processor. It used 36 22nm CMOS calculation LSI (Large Scale Integration) chips and one control FPGA. This technology enables the construction of large-scale, fully coupled semiconductor systems following the Ising model (a mathematical model of magnetic systems) with 4096 spins.

The processor incorporates two distinct technologies developed at the Tokyo University of Science. This includes a "spin thread method" that enables 8 parallel solution searches, coupled with a technique that reduces chip requirements by about half compared to conventional methods. Its power needs are also modest, operating at 10MHz with a power consumption of 2.9W (1.3W for the core part). This was practically confirmed using a vertex cover problem with 4096 vertices.

In terms of power performance ratio, the processor outperformed simulating a fully coupled Ising system on a PC (i7, 3.6GHz) using annealing emulation by 2,306 times. Additionally, it surpassed the core CPU and arithmetic chip by 2,186 times.

The successful machine verification of this processor suggests the possibility of enhanced capacity. According to Prof. Kawahara, who holds a vision for the social implementation of this technology (such as initiating a business, joint research, and technology transfer), "In the future, we will develop this technology for a joint research effort targeting an LSI system with the computing power of a 2050-level quantum computer for solving combinatorial optimization problems."

"The goal is to achieve this without the need for air conditioning, large equipment, or cloud infrastructure using current semiconductor processes. Specifically, we would like to achieve 2M (million) spins by 2030 and explore the creation of new digital industries using this."

In summary, researchers have developed a scalable, fully coupled annealing processor incorporating 4096 spins on a single board with 36 CMOS chips. Key innovations, including chip reduction and parallel operations for simultaneous solution searches, played a crucial role in this development.

More information: Taichi Megumi et al, Scalable Fully-Coupled Annealing Processing System Implementing 4096 Spins Using 22nm CMOS LSI, IEEE Access (2024). DOI: 10.1109/ACCESS.2024.3360034

Provided by Tokyo University of Science