Facing difficulties from the impact of Coronavirus, businesses are all concerned with the story “How to get Logistics back to normal?”. In other words, is there a solution to help companies bring business activities back to normal but with a new way.
To clarify this question, Mr. Brasca, a representative of Blue Yonder, researched the answers of more than 150 ‘C level’ executives in various industries. To find out the “pain point” the business is facing and the most optimal solution.
Why did Blue Yonder conduct this research?
Before diving into the research, let’s take a look at Mr. Brasca’s discussions about why the research is being conducted at this time.
In the period affected by the Coronavirus pandemic, many problems appear unexpectedly that businesses do not anticipate. Mr. Brasca wishes to capture what is going on in the minds of Logistics executives before the rapid changes of the market and finding some new solutions in management.
In this research, he focuses on different trends and topics in the field of Logistics, most notably technology, training, and recruitment. The aim is to help quell the labor shortage and apply new technology to meet the needs and optimize operating costs.
Answers from research
The research also gives different results, but there is a common trend that is to change towards the application of technology in the management and operation of businesses.
- Many businesses decide towards sustainable investment
This can be seen as a positive signal, up to 57% of logistics enterprises intend to invest in sustainable business activities. In particular, sourcing materials, suppliers, and manufacturing — to maximize supply chain sustainability.
This is not an unexpected result. Mr. Brasca shares more
The change in consumer behavior is a big driver. As consumer behavior becomes increasingly younger, they want businesses to be able to respond quickly to their requests. Therefore, to improve the customer experience, businesses need to have a sustainable, fast operating system and be ready to support customers. At that time, businesses need to optimize the supply chain experience to improve the experience for customers.
- Optimizing convenient options
38% of businesses share that they want to optimize convenience options, including online in-store pickup (BOPIS), and home delivery. There, “home delivery” tops the priority list to enhance the customer experience in the wake of the pandemic.
Explaining this number, Mr. Brasca said that the trend of consumers is increasingly younger, they do not like to do direct work. Fast and convenient are two factors that the majority of customers want to aim for.
Of course, it will be difficult to meet each customer’s unique demands. So many retailers are also looking to change consumer behavior through efforts like ‘if customers were given this time frame for delivery, they would be completely free. In this way, businesses have partly guided the behavior of shoppers in the way that businesses want.
- Experience criteria are gradually loosened in recruitment
In terms of recruitment, 40% of respondents said they are reducing their rigor on the job- and industry-specific criteria to attract talent.
These decisions stem from a severe labor shortage in businesses. This shortfall is growing and persists for the past 5-7 years, especially in terms of driver and warehouse workers and those challenges are certainly not new.
Of course, when attracting talent becomes an urgent issue, employee retention, and tracking will certainly also be an issue that most businesses are concerned about.
So, how to attract and retain talent?
Technology is seen as the core factor in this case. More specifically, it is businesses that can effectively apply technology to schedule and use labor optimally.
Explaining why it is necessary to manage human resources closely with information technology, Mr. Brasca shared more.
With such resources being fleeting, there is no time frame for going through rigorous training. Especially in the current period of urgent recruitment, it is impossible to directly train an employee in a methodical manner. Therefore, instead of spending too much time on recruitment and training, train in the process and manage the work of personnel in a more scientific way.
What solution can help businesses manage logistics better?
48% of businesses said they put their trust in logistics management solutions
Investment in technology received strong feedback, with 48% of respondents saying they plan to implement or also enhance warehouse management systems (WMS) and cloud infrastructure in the next 12 months.
42% enterprises say they are planning to implement or also enhance plans through artificial intelligence (AI) and/or machine learning (ML).
More than 41% of these businesses are very interested in the transport management system (TMS).
Of these indicators, the index of 42% of businesses interested in plans through Ai and ML is the most remarkable.
Mr. Brasca shared that other solutions such as WMS and TMS are not new solutions for the Logistic market. The effectiveness that these two solutions bring to the market is no longer a matter of debate. However, AI and ML are completely different. For many other fields, these two terms are only “academic” and have no practical application. However, Blue Yonder’s solution is completely different, the best thing is that many businesses have believed and successfully applied the features that these two technologies bring.
It is clear that we see a big change in the mindset of the managers and that is the necessary change. When customer behavior changes, when the logistics labor market is increasingly scarce, businesses need to reject old-fashioned thinking and instead know how to grasp and apply new technology. .
This can also be said to be a good result for Blue Yonder when the solution that the company offers is being trusted and successfully applied by many businesses. As the representative of Blue Yonder in Vietnam, TSL will continue to bring this solution to businesses to solve the difficulties that businesses are facing.