The Role of Logistics Service in This Crisis

Role of Logistics

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COVID-19 is disrupting the global distribution at a high level on these days. With increased border controls and customs regulations resulting in the long wait times, there is a huge lack of capacity for the long-haul, and last-mile fulfillment is also creating extreme challenges in the logistics organization. So, several organizations are now involved in the digital transformation agendas. With the development of the eCommerce industry, the logistic business also started to introduce capabilities in real-time order monitoring, super reverse logistics experience, and end-to-end inventory.

In such conditions, some considerations should be given importance for the freight and logistics providers as they retool.

  • E-Commerce industry: The last-minute service providers and eCommerce are drastically increasing their market share and logistic abilities these days. Due to the pandemic virus, more customers are placing orders and relaying on the online medium and this will experience some changes.
  • Customer supply chain: China sent all the shockwaves through supply chain professionals and now they are rethinking for sourcing and logistics networks to reduce some risk in the future.
  • Change in global economic growth: All the indicators are now facing some huge reductions in the economic activities and this is going worse from World War II times. As the logistic services demand movement of physical goods, there will be a huge negative impact in the sector in the current health crisis.

In all such instances, only the professional logistics services can help the business to reach to the people and have growth in the business.

Logistic industry today

The industry is playing a vital role in the manufacturing and transport of some essential products like food, medical types of equipment, masks, and test kits. When you consider that a ventilator requires over 700 parts from all over the world, it is only possible by the supply chain, where the involvement of logistics is huge.

Beyond the immediate response to the pandemic, logistics will be the key to support the long term economic recovery, this sector is about 11% of the global GDP and it is also serving as the backbone of the global trade and it helps for several industries worldwide.

Important factors that will address the impact on logistics

Enhanced visibility

When you need help from the leaders and use insights to respond with some confidence, it is more important for the companies to use the logistics control and handle them for the real-time control over the operation. So, this requires integrating logistics marketing information, demand forecast, inventory, and capacity constraints internally and externally. This will support better and help for some faster decision making. Now, the companies are going for some scale and it is not scope. This will increase the end to end global priorities and lead to business growth in soon in the future.

Improved flexibility

Several companies are looking for the repurposes assessment, inventory, and capabilities, and this will help in meeting the demands and act responsibly for addressing the needs of the local communities in this crisis impact.

  • Balance supply and demand on both the micros and macro scale.
  • Increase spot buying of the freights to some more capability, leveraging online freight platform.
  • Increase contactless deliveries and implement no contact services for pickup, delivery, and payment process.

Effective communication

During this time of intense disruption, clear, regular, and effective communication in the entire ecosystem is more important. Fulfillment and logistics terms should look to engage proactively with some people like,

  • Supplier or carriers: Look for managing the expectations and proactively monitor their efficiency against the new set of expectations in the services concerning the health of the people.
  • Customers: Offer more visibility as to the wholesaler, channels, distributors, and customers about the impact of this hard crisis disruption on the agreements on the service levels.
  • Supply chain functions: Collaborate with and integrate the different supply chain functions like planning for supply and demand alignment, procurement for new carrier agreement, and sales and customer service for the customer prioritizations.
  • Remote Workers: They have to quickly adopt new ways to work on managing remote employees with the audience.

Support the workforce

It might be core or the extended logistics workforce. It is enduring and unfamiliar and it is considered the stressful work area. So, the companies should look to address their mental and emotional health and well being along with the safety measures for the employees. Ensure strict compliance with all the necessary health regulations. This can be achieved by setting some interim workforce protection measures like a non-combined shift or temperature check on a daily basis.

Future of logistic

When months roll on, the COVID-19 situation might pass on, but the speed of economic recovery will be completely based on the ability of companies and industries to bounce back. It means the decision making and the support to the growth requires strong logistic services.

Time to visit us

VSL Worldwide Logistics is one of the leading logistic service providers who can offer higher-end logistic services in the UK and Europe. In this crisis, VSL Worldwide Logistics is helping several businesses and serving as the reasons for the business to establish a presence to the audience and have business growth. At the same time, people can have their products in a more safe and convenient manner. Are you looking for such services for your business? Just feel free to contact us through mail or call and we will reach you shortly.

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