Blog

The best content on costs and profitability

Learn about the main logistical bottlenecks and how to avoid them

Learn about the main logistical bottlenecks and how to avoid them

The logistics sector can present several challenges, some of which are known as logistical bottlenecks. Taking care to avoid them is important, because with bottlenecks, there is an increase in the prices of products and services, which reduces the competitiveness and dynamics of the sales market. Basically, a bottleneck may be related to any obstacle or issue that directly or indirectly influences the processes of a company, interfering in its results and decreased income.

Thus, it is essential that managers promote programs for controlling this productive impasse. This initiative can bring great benefits, such as lower costs, team development, and increased profitability and quality of services provided. With this idea in mind, one of the best ways to deal with this subject is by knowing what the main types are, as well as ways to get around them.

To help in this matter, we have prepared this article containing the most relevant information on the topic. Read on and stay on top of it!

What are the main logistical bottlenecks?

Among the main bottlenecks that we can mention, we have cargo transportation. This is mainly due to the various challenges faced on Brazilian highways by professional truck drivers, who find precarious road conditions in parts of their routes. In addition, factors such as the large size of the country, linked to high investment costs for cargo transportation, make this subject one of the main bottlenecks faced in logistics.

Another point that should be taken into account is the balance of inventory levels. In this regard, poor management of the demand of raw material for stock can be an issue for the company. This occurs when there is an oscillation between the shortage and the excess of products, especially when they have a high loss rate. Thus, the inability to plan the logistical production may be a determining factor for the business’s financial instability and loss of profitability.

Furthermore, it is important to comment on issues relating to high operating costs. Considering that the logistical processes may account for a considerable portion of the company’s debt, the consequences of an action that is more costly than normal can mean a decrease in profitability and business income. Related to this, there is a loss in the pricing of products, which undermines the market dynamics.

How logistical bottlenecks can be resolved

The first tip regarding the solution of logistical bottlenecks is to hire specialized carriers, as this strategy aims to solve part of the problems arising from the challenges of moving goods around the country. As for inventory balance, it is interesting to carry out productive analyses that aim to understand the real need of the business and draw up safer projections of inventory investment.

Furthermore, it is essential to know new technologies related to management and monitoring of raw materials and cargo transportation, in order to have activities operating with greater productivity and ensure lower costs throughout the distribution chain.

So, these were the main information about the various types of logistical bottlenecks and how to avoid them. Thus, it is possible to see that, by adopting a more planned and strategic management, you can take the performance of bushttps://linkedin.com/company/myabcminess processes to another level.

Did you like the article? Then follow us on social media and stay on top of more relevant topics for you. We are on Facebook, Twitter and LinkedIn!