The supply chain industry faces big challenges ahead. New tariff regimes, persistent inflation, and rapidly evolving technology are exerting pressure on logistics companies worldwide.
In this post, we’ll take a closer look at five immediate challenges in the supply chain industry and how each one can be solved with logistics process outsourcing.
Challenge # 1: Staffing shortages
The supply chain industry isn’t exempt from the staffing shortages that are affecting many sectors in developed economies. Logistics companies are struggling to find qualified professionals because of an aging workforce and a general lack of interest among younger generations.
To maintain quality service and grow business, companies must find effective ways to hire and retain talent.
Solution: Logistics process outsourcing can augment your hiring efforts. Or it can be your primary strategy to fulfill key functions cost effectively. From administrative tasks like accounting and order processing to customer service, outsourcing to an experienced BPO provider will help keep your business running efficiently.
Challenge # 2: Declining customer service
Declining service quality amid rising costs and a disruptive business environment is a bad sign for any company. It’s a sure-fire way to drive customers and partners away, and into the arms of competitors.
What’s more, if companies let bad or inconsistent customer service linger longer than they should, negative reviews (online or by word of mouth) and a bad reputation can quickly take root. You want to keep existing customers happy and give them reasons to say good things about your company.
Solution: With the right provider, outsourcing can both remedy staffing shortage and customer service issues. Our team at the Offshore Hive, in particular, rigorously vets and trains staff based on industry best practices. Additionally, hiring outsourced teams from a different time zone ensures that key business functions continue running even after you’ve called it a day.
Challenge #3: Navigating complex supply chains
On top of tracking an array of shipments, logistic providers are also dealing with increasingly tighter regulations and managing vendor complex partnerships. Companies must have sound strategies and long-term forecasts in place to ensure business continuity.
The supply chain landscape in 2025 is undoubtedly more complex than ever before, and companies can’t afford to make strategic mistakes. Poorly managed supply chains lead to serious problems down the line—unscheduled delays, unforeseen expenditures, and increased exposure to disruptive trade policies.
Solution: Working with BPO providers like Offshore Hive allows you to focus on strategic business decisions. While professionally trained staff handle the day-to-day aspects of your company, your department heads and key decision makers can dedicate more time and effort to business growth.
Challenge #4: Demand for faster deliveries
The massive growth of the e-commerce sector has made a variety of products more accessible to consumers all over the world.
However, as competition ramps up, more and more consumers are expecting faster deliveries (same-day deliveries as well, depending on the market and products). Logistics providers need to find efficient ways to meet demand sustainably.
That task is no easy feat. Aside from delivering on time and on target, logistics companies must also provide reliable platforms to track updates in real-time and answer urgent queries as they come.
Solution: An outsourcing strategy tailored to your needs can help you keep up with consumer expectations at scale. You can outsource tasks like order tracking/management, shipment registration, and invoicing without missing a beat. Offshore teams in different time zones ensure that tasks and customer concerns are addressed fast.
Challenge #5: Rising operational costs
In 2025, logistics providers face increasing operating costs due to inflation and higher fuel and labor/staffing costs. It also doesn’t help that a growing trade war between the US and other major economies is contributing to an unpredictable trade environment.
All these factors add up and result in significantly higher expenses to do business. The question now is how will companies manage profit margins to ensure they’re still in the black?
Solution: Remain competitive while keeping costs manageable through outsourcing, which allows you to hire competent staff for immediate needs. Additionally, outsourcing providers also bring much-needed expertise in various areas (export operations, accounting, order tracking/management)—removing the need to train people from scratch.
Navigate supply chain challenges with Offshore Hive
In an increasingly uncertain economic climate, logistics process outsourcing can ease the pressure on companies and their supply chain partners.
Find the right outsourcing solution for your needs. The Offshore Hive has a proven track record to help you stay efficient and revenue positive in these challenging times.
Send a message here to tell us more about your outsourcing needs.