Amid Covid-19 and its impact on the Operation of Logistics and Transportation
Covid-19 has taken the logistics and transportation industry and the entire world like a storm. Early this year, the pandemic that has spread worldwide had lead to lockdowns and border closures that restricted the movement of goods. The government also implemented additional protocols like social distancing at warehouses and the skeletal workforce to ensure the safety of workers. All of this leads to delivery delays, congestion, and higher delivery rates. No one expected the challenges that everyone is facing. It has placed an unprecedented strain on transportation and logistics resources.
Let's take a look at the logistics operations before and during the pandemic. BEFORE
Before, there are no lockdowns and restrictions when it comes to the number of people that come to work. The logistic distribution process includes fleet manager or logistics personnel creating and printing delivery schedules, assigning a task to drivers, and coordinating with them thru calling if they arrived at their destination. Logistics companies and personnel can freely move the goods from warehouse to store.
So how should the transportation and logistics industry respond to this crisis?
The pandemic has tested and shaken the traditional way of thinking when it comes to transportation and logistics operating models. In the new normal many processes had to go digital quickly. In times of social distancing, for example, it is clear how outdated manual or even paper-based information transfer is and can affect the safety of the employees. Digitization provides the basis to ensure that the logistics processes are reliably working even under extreme conditions. Business leaders must take urgent action to innovate and adopt new digital tools to support new processes and support the workforce and sustain business operations.
Here are three key actions to address the COVID-19 impact on logistics:
Improve the Logistics Process- In this time of intense disruption, regular, clear, and effective communication across the whole logistics and supply chain ecosystem. Quickly adopt new and innovative ways of working to manage remote workers. A logistics solution can lessen administrative tasks and issue orders across multiple departments to minimize paper touch-points in a sector and allows work from home set up.
Plan a Recovery Assessment – It's crucial to analyze your current business operations to plan and recovery assessment. To help, leaders should use insights and data to respond with confidence, transportation, and logistics companies should have an end-to-end logistics platform that lets them have a real-time view of operations. Planning a thorough recovery assessment of your transport operations can help identify inefficiencies, weaknesses, and high-cost drivers impacting cost-to-serve profit margins.
Adapt Digitalization- Offering a more digitized end-to-end service is now the key to business resiliency. Simply put, Digital Transformation improves customer experience, business efficiency, and operational performance. 3PL and Haulers need to embrace new transportation and logistics technologies such as fleet management and logistics solutions, business analytics, and data management that will enable a more safe environment for your employees and a customer-centric process.
The pandemic shows how vulnerable the transportation and logistics industry to disruptions. And it is now crucial to invest in new technologies and digital solutions that are key to developing more advanced last-mile logistics capabilities. It is now a necessity for strategically planned, thoughtfully implemented digital processes as a way to manage the impact of Covid-19. Start leveraging digitized solutions today and be prepared for future disruptions.
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