Logistics issues
in Latin America
Logistics is understood as a set of planning, implementation, and control processes that ensure an efficient flow of goods. In aggregate terms, logistic performance in Latin America lags significantly behind other regions due to the region’s economic growth, poor quality of infrastructure in the transportation sector, insecurity within and outside cities, leading to high transportation and logistics costs. This has consequences for small and medium-sized enterprises both in marketing their products within and outside the country, as well as in increasing revenues and enhancing their growth.
In this article, we will discuss the most relevant challenges facing logistics in Latin America.
Insecurity
For many years, crime in Latin American countries has been the most significant problem for the transportation of products, causing significant damage and negatively influencing delivery times and cost increases due to insecurity, leading to higher insurance premiums, resulting in economic loss for companies and an exponential increase in prices.
Road closures
Another major problem in Latin America is the constant closure of roads, whether due to landslides, road repairs, potholes, or natural disasters. This increases transportation costs and delivery delays, forcing companies to have a strategy to respond in case such events occur when delivering a product.
Lack of trained personnel
Every company aiming for results must prioritize having trained personnel in the functions they will perform to reduce errors and offer high quality service.
However, not all distribution centers prioritize hiring the right personnel. In Latin America, with the lack of trained employees and the urgency to fill gaps in different areas of the company, it becomes complex for the team to solve unforeseen problems, affecting both the quality of service and customer satisfaction.
Conclusion
Companies, regardless of the sector, face various challenges and problems for business growth. In the case of logistics in Latin America, adverse situations such as insecurity, the lack of optimal roads, and the shortage of trained personnel are the most common obstacles to providing quality service.
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