How the supply chain is changing?
“Will Covid be prevented?” It is a matter that none of us can be sure of. However, as we move into the new year with more vaccines being rolled out globally, there is still hope that epidemic will be pushed back.
Throughout 2020, the logistics industry faces a major challenge, with a series of regional blockade requests from governments of countries. In addition to some completely frozen 3PLs, there are still many silent units still increasing container handling, delivery, and order handling to ensure that they can access food, medical equipment to deliver to the customer.
Not only is it a matter of responding to market demand, but the logistics industry also has a drastic change, and this starts with changes in customer buying behavior. If in the past, customers still wondered between choosing traditional methods of buying goods or buying online, when Covid exploded buying online has become a compulsory trend of the market. At first, some customers still feel uncomfortable with this way, but when they get used to it, online shopping has become the hobby of many people, especially women.
Many people believed that the demand for goods has decreased due to the impact of the global economy. However, in reality, essential goods such as medicines, foods, and household appliances are required in any context. Besides, these items are not too large in size, so they are suitable for shipping online.
This is an opportunity but also a challenge for 3PLs, the huge demand means that they need a large source of human support. And at that time, it was extremely difficult to recruit qualified personnel. In particular, for 3PLs that still apply traditional warehouse and transportation management methods, and this is indeed a very difficult problem.
However, at that time, there were many businesses quickly looking for a new direction that is the implementation of WMS in the supply chain, which has helped many logistics businesses get out of the crisis epidemic season. It can be said that the Covid epidemic has reflected that the learning and positive changes in the supply chain will last longe and create a competitive advantage for businesses.
Pay more attention to investment in technology
Diversified supply chains with flexibility and visibility will become mainstream
Relying on sensory assessments to race trends and plan for the future can lead to major risks. In particular, when countries have a gap, the customer’s buying behaviors change continuously without historical index, that’s why it is difficult to analyze and find the rule of buying in the future.
Organizations that lack an overall view of inventory in transit or at rest, have struggled to redirect goods quickly to where they are most needed. This is made even more difficult due to the effects of a sharp decrease in international traffic capacity.
Multichannel execution strategies are most successfully applied in this challenging period.
What will be the solution for supply chains?
From all the above we can see that, with the supply chain, Covid is not a scary thing. Maybe the whole operation in the past has changed, but looking in the other direction, this could be a positive change, helping 3PLs go faster, get out of the old rut. In addition, in the management stage, the core issue is not to spread too many personnel, we should recruit experts and finding technology solutions to support them.
Warehouse management solution that allows for a higher degree of automation, visibility to meet the need to help minimize clutter and minimize manual handling for increased accuracy and timeliness. That is the bright spot to help businesses thrive in the midst of this difficult time.