Indonesia is a developing country with a fairly dense population. Nowadays, many people choose to shop online, of course this is a big opportunity and challenge for logistics service companies to be able to meet existing needs.
Due to the continuing development of existing needs, several logistics companies are having difficulty meeting various kinds of existing needs, starting from the need for better service, better prices, cooperation with various e-commerce platforms , and many more.
The toughest challenge faced by logistics companies today
High number of orders
One of the challenges faced by logistics companies is the high number of existing orders, so they must be able to maintain a ratio between the number of orders and available inventory to be able to respond to orders properly.
Lack of competent human resources
The next challenge is the difficulty of finding skilled and competent human resources. With the growing demand for logistics services, the volume, operations and existing pressures will also increase, thus requiring a lot of additional human resources who are experts and competent in their fields.
For example, a logistics company requires at least 100 people to meet service standards, but the number of employees is only 75 people. It will be difficult for them to be able to meet the service standards that have been set.
Investing in a competent human resources sector is a good idea. Your business requires a highly dedicated workforce and is able to work optimally.
A challenge often faced by logistics businesses in Indonesia is that many customers have high expectations that their shipments will arrive as quickly as possible. In fact, in the process of shipping goods there are many processes that must be passed, such as planning, procurement, and many other operational processes.
An example is when a seller uses a goods delivery service with a delivery duration of 5 days. The seller expects that the item can arrive in 2 days because there are other companies that are able to deliver the item in just 2 days.
Insufficient number of expedition couriers
The lack of existing expedition couriers causes frequent delays in package delivery. Ideally, a logistics company has a large fleet of couriers so that shipments can arrive quickly and prevent delivery delays. For example, if a logistics company needs 100 couriers, it turns out they only have 60 people. This condition causes various obstacles that result in delays in package delivery.
To prevent the problem of delays in package delivery, investment is needed to be able to meet existing shipping needs both in terms of quality and quantity.
Problems with warehousing
Many logistics companies use warehouses to store their packages and make it easier for them to reach their customers when demand is high. Warehouse utilization can reduce transit time and make shipments more efficient. However, using a warehouse requires a lot of money and requires careful planning for optimal use.
For example, if a company needs a goods delivery service with a 3-day deadline but they don’t want their goods to be stored for more than 2 days, the shipping service company still has to pay warehouse rent for 3 days.
Competition with foreign logistics companies
Logistics companies in Indonesia must also be aware of attacks from foreign logistics companies operating in Indonesia. Generally, foreign logistics companies have superior service quality, resources, and capabilities compared to local logistics companies.
Foreign logistics companies such as FedEx, DHL, and many others tend to be more trusted because of their long experience in operating and even being able to penetrate on a global scale.
Difficulty adopting new technology
Technology plays an important role in all aspects. For a logistics company, the use of the latest technology can increase the quality of service that can be provided to customers. However, rapid technological advances must also be balanced with the mastery of these technologies.
For example, with real-time tracking technology, many sellers want their packages to be tracked in real-time or directly, but there are still not many logistics companies that are able to provide this technology.
There are many challenges faced by logistics companies in Indonesia. Even so, logistics companies in Indonesia must be able to provide maximum service and must also be able to answer these challenges. It is also important for a logistics company to continuously improve their productivity so they can send packages more efficiently and effectively.