The logistics industry is growing at a record rate, with more businesses popping up everywhere, and more companies in need of better logistics management in general, due to expansions, adding new markets, and going global. However, managing shipments and the transportation of goods is no easy task, especially when you’re dealing with a business that has storage units scattered overseas and across the world, more than one manufacturing and production facilities, and customers all over the globe. 

While the complexity of the listed work may very well be enough to kick smaller players out of business, it actually comes with different challenges even for the giants of the industry. For example, legal compliance, the most feared and often most frequent problem arising for shipping and transportation companies. But, in addition to understanding the finest routes to keep things legal and transparent, it’s good to know where your legal procedures can go wrong, and how you can prevent and treat them to keep your company a leader in the industry. 

Misaligned global laws

This, perhaps, might not be an issue that you can cause, per se, but you can definitely complicate matters further if you enter an agreement without understanding the rules and regulations that are considered common in a new country of operations. That is precisely why any business expansion for companies that work in shipping and transporting should be conducted under legal supervision, and of course, thorough research prior to the actual expansion and signing of agreements.

There are agencies that deal with corruption prevention and other legal matters of international scope, but you also need to make sure that your internal structure fits the nature of international laws. Even when you manage to find a way to adjust your procedures and processes to match international laws, you also need to educate and train all of your staff dealing with international shipments and transportation. A single person not understanding their role in such a trade could lead to legal problems. 

Lack of transparency in logistics

Managing even a single warehouse can often lead to numerous missing documents, people not signing in when they should, lack of proper inventory management, and not to mention cargo transportation issues. One missing signature or a misspelled address can lead to an entire avalanche of trouble. What may seem like an isolated issue, however, is often a much more complex one that can be traced back to a lack of transparency. 

With the help of warehouse management software the likes of CartonCloud, businesses have the opportunity to track every step of the shipping and transportation process. The main perk? Every single change is automatically registered, you can track the movement of your fleet, and you can track the route of each shipment down to a mile to optimize your operations. With a single tool such as that one, companies dealing with logistics can have their peace of mind, always staying in the know of every single change inside their organization, thus preventing a slew of potential legal issues that stem from a lack of transparency. 

The security of data and products

While software solutions do work wonders for data protection, it’s equally important to note that security doesn’t end with technology, since people are the ones who often lead to legal issues because of data mismanagement. The presence of security software in such instances is helpful, but it cannot prevent the factor of human error, or even malice when you’re dealing with a disgruntled employee. 

Security breaches often jeopardize your entire reputation, as legal action can be taken against you by those businesses with whom you collaborate and whose data is exposed without their explicit permission. To prevent such situations, it’s best o give specific security clearance for shipping and transportation tasks to people who are trained to manage sensitive information. 

Irregular paperwork 

Especially when you’re dealing with shipments outside of your own country or state, you need to have a legal team supervise all paperwork and contracts. Everything from obtaining the right certification and licenses for conducting transportation in the first place, all the way to documentation pertaining to the products themselves, your legal team can prevent severe legal fines and potential bans for trading in certain regions due to poorly managed paperwork.

Since every country has different requirements, make sure that your legal experts always check for any missing data, up-to-date licenses, and of course, anything else that could help protect your logistics operations. 

Missing insurance 

Sometimes, you cannot prevent an issue that occurs on the road or in the air while transporting goods to your business partners or directly to the customer. Damage can happen, but that’s precisely why you need to have proper insurance on all of your transportation vehicles, crew, and every piece of product you ship under your supervision. 

That way, you can avoid legal fines, unhappy customers filing complaints for mismanagement, and the like. Talk to your legal team as to the best coverage, so that you can include the most common hazards as well as the ones that might not be as frequent, but more specific to your industry.

Legal issues are often not just a stain on your reputation, but a severe hindrance in your operations. Make sure to avoid these errors with the right preventative action, and you’ll protect your shipping and transportation business and keep it successful for years to come.