Understanding the Problems and Roadblocks
The courier and logistics industry faces several significant challenges that can impede business growth and operational efficiency. One of the primary issues is the lack of brand identity for smaller courier companies. These businesses often get overshadowed by larger logistics partners, losing their distinctiveness and autonomy in the process. This dependency can result in restrictive conditions and targets that limit growth and innovation.
Additionally, the industry is plagued by slim profit margins, which are further strained by high unpaid credits extended to consignors. This financial burden can destabilize courier companies, making it difficult to maintain liquidity and manage day-to-day operations effectively. Moreover, the complexity and inefficiencies in acquiring instant forwarding numbers like AWB (Air Waybill) and LM-AWB (Last Mile Air Waybill) can cause significant delays. The inability to provide these numbers promptly can lead to missed revenue opportunities and customer dissatisfaction.
Another major hurdle is the inefficient management of cash flow. Courier companies often struggle to keep track of earnings, manage credits, and handle return-to-origin (RTO) shipments, which can disrupt financial stability and operational efficiency.
