What Happens Next for Logistics?

The current economic landscape created by COVID-19 has taught the world some very valuable business lessons. We mentioned in our blog last month (What is 3PL and Is It Essential For You Right Now) that this pandemic has upended business, and we’re seeing those changes already. They’re not just rippling through the warehousing and logistics world, but affecting how businesses at every level handle their fulfillment. 

As the world slowly gets back to work and we recover from an unprecedented situation, we’re seeing businesses mandating social distancing guidelines in every facet of their day-to-day. From limited person-to-person contact, rotating shifts to provide more space on the floor, and stringent hygienic procedures, precautions are being taken everywhere to keep us all safe. 

But how are businesses preparing for the next time that we see such large-scale interruption in logistics and operations?

Businesses still using manual systems were likely in a tailspin when demand started to skyrocket, inventory started to fluctuate, and products got harder to source. Managing quick moving inventory, returns, and sourcing platform providers is too much to do when human error can cause a logistic catastrophe. 

If a business hasn’t already done so, the past few months should have them at least thinking about investing in the right technology for their business. Unable to institute an inventory management system in-house? It could be time to start considering a 3PL partner who has the capability to find a flexible solution for them. While it can seem like a large investment up-front, the ability to see logistical interruptions before they happen will be invaluable next time.

It’s not just logistics adjusting, but wholesalers supplying retail spaces have pivoted their business to provide for e-commerce retailers. This is a significant shift in business that likely would not have been possible had they not had the analytics to efficiently track the changes in the market. These same businesses have had to completely diversify sourcing, leading to businesses looking to their own community for their needs.

Along with diversified sourcing, businesses are looking more closely at their logistics and warehousing providers. Longstanding relationships with platform providers, experience handling fluctuations in the market, available technology and how long they’ve been established is now mandatory information for any business picking a 3PL provider.

No one can tell the future, but COVID-19 has made it clear that all businesses who depend on logistics and warehousing need to be cognizant about the next big interruption.

How will you adjust?

For more information on how CRWS 3PL Warehousing and Logistics can help you, email info@crws.ws.