Did you feel the need to ask your suppliers for faster delivery? Do you need to maintain your financial stability and the transparency in your processes (internal and external)?. And did you even think about outsourcing a team that would specifically take care of your company's logistics processes?
That's one option, but developing software or following any of these four tips can work wonders for you.
“Logistics practitioners will need to become even more agile as they navigate recovery in the second half of 2020 and into 2021” are the words of Michael Zimmerman, partner of the consulting firm Kearney, who made a report on the state of logistics in 2020.
The challenges of this pandemic year led suppliers and beneficiaries to rethink their supply chains from distribution to the means of transportation used, so we share the following tips to help you manage your supply chain.
Most deliveries and shipments of supplies and even products are made by land: trucks and railroads.
Since 2019, the market for trucks has decreased somewhat, but this year's efforts were increased to strengthen this link in the supply chain because it became extremely necessary.
“The federal government loaned $700 million under the CARES Act to less-than-truckload (LTL) carrier YRC in exchange for a 29.6% equity stake in that Teamsters union employer.”
It's always good to handle routes and maritime transportation as an alternate method, especially over long distances. If your supply provider covers each of these routes, it's in your best interest.
The rise of e-commerce expanding the demand for warehouses to store, handle, and even work as a distribution center for the products of small, medium, and large companies in the country continue to increase.
The pandemic heightened the need for increased storage because you had to order larger quantities of supplies and even produce larger quantities of products to anticipate potential delays and setbacks in replenishment due to the pandemic. This meant more storage capacity, but also more automation and control in this storage and distribution process.
Many warehouse automation solutions will be in trend, such as autonomous mobile robots, which help you keep costs and operational complexity more under control.
"These trends demand greater attention to the efficient management of both private warehouses and companies providing third-party logistics (3PL) warehouse services, which help customers manage other supply chain needs by providing trucking, freight brokerage, freight forwarding, packaging and materials handling, along with other specialized services."
Previously, the migration of manual logistics processes to automatic warehouse management systems, transport, tracking, and tracing, electronic signatures, among other technologies that promote logistics processes (own and outsourced) towards digital transformation, was already underway. However, some companies were resistant to change.
In 2020 that resistance broke down in favor of technological transformation because it became necessary to keep businesses with fewer workers afloat and with many variations in the demand for supplies, products, and services (depending on the industry in which they were located). Indeed, it was only possible to cope with this wave of change by automating many processes.
Although this is not an absolute reality in all companies, projections point to this trend in the next five years. This, according to the report on the state of logistics in 2020 done by the consulting firm Kearney.
This reduces the need for physical labor, increases productivity, reduces long-term labor costs, makes logistics more efficient, and facilitates control over the flow of products and supplies because the data is carried in an automated manner.
We decided to share only four tips which may look simple, but give us an overview of the changes that the pandemic brought to our country and the rest of the world in logistics and supply chain management. This information also serves as a projection of what supply chain management will be like next year. Which of these aspects would you like to start with? We can help you with anything from automation to technology implementation.