Rohlig

A couple of millions a year – to have or not to have?

by admin

According to more than 50% of the logistics directors of manufacturing companies, the estimated increase in logistics costs per year, which are the result of the phenomenon of transport peaks at the end of the month, sets in the range of 5-15%. This means that for every 1 million zlotys spent per month on logistics, approx. 1/10 are the costs that could have been avoided. In the case of a large company, throughout the year, it can reach a total of up to several million zlotys.

The most common reasons for the additional logistical costs include:

  • increased operating costs for manufacturing companies, including:

    • higher purchasing costs of the cargo area, due to the low availability of means of transport on the market during periods of the transport peaks

    • increased logistics costs, associated with the maintenance of storage capacity in warehouses (surface, equipment, staff) and buffering stocks

    • overtime and increase of the cost of additional staff at the time of execution of orders during the peak

    • additional administrative costs associated with handling errors, returns and other complaints after a period of intense work during the peaks

 

70% of respondents also identified that the lost sales were reported as a result of errors and late deliveries or product damage because of a reduction of the quality of logistics services, and the increase in the volume of transported goods. Tardiness, damage, errors or omissions in supplies also have a negative impact on relations with customers.

 

We have to remember about the non-financial or hardly measurable consequences of the peaks, such as:

  • work under stress, reduced motivation and high staff turnover in the logistics departments in the companies

  • periods of intensive work during the peak periods and the lack of job between the peaks - especially for transport companies and employees in the TSL industry, the formation of the gray zone

  • the risk of breaking the law and exceed the permissible working time of drivers

 

 

  • intense road traffics and the associated increased risk of traffic jams and accidents

  • increased noise and emissions into the environment in the intense periods of traffic for the social environment

 

 

During the peaks the transport service providers and logistics operators have little time to react, therefore, are not able to handle peak volumes or expect higher wages. 

 

 

 

If you know of other harmful effects of traffic peaks, report  here

the risk of breaking the law and exceed the permissible working time of drivers

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