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Freight and Logistics providers leading the supply chain recovery

April 20, 2020

The speed and scale of the escalation of the COVID-19 crisis requires continuous end-to-end assessment, optimization and monitoring.

Moving from reaction to action

1. eCommerce is surging

Last mile service providers and eCommerce are rapidly increasing their market share and their logistics capabilities. Customers have dramatically increased online orders and home delivery of food and supplies, and future service expectations will change.

2. Customer supply chains will change

The lockdown in China sent shockwaves through supply chain professionals, who are now rethinking their sourcing and logistics networks in order to reduce future risk.

3. Global economy growth will slow down

All indications point to a major reduction in economic activity, one of the worst since World War II. Since logistic services are a derived demand from the movement of physical goods, there will likely be a significant negative impact on the sector long beyond the current health crisis.

Be future ready

Accelerate your plans

  • Respond to the eCommerce surge. Strive to meet the raised customer expectations as eCommerce providers increase market share and logistics capabilities.
  • Automate physical processes and facilities. Consider future workforce resiliency benefits when investing in physical automation or future technology. For example, co-bots and worker-plus-machine could be effective and safer in a future health crisis.
  • Update technology capabilities to enhance flexibility. Incorporate work force flexibility requirements in future technology investments and initiatives. Ensure your IT systems have the bandwidth, security and remote systems protocols to enable working from home at scale.
  • Rethink people-heavy processes. Standardise, centralise and automate non-customer facing and non-core tasks.


  • Become a data driven enterprise. Data-driven enterprises are those that maximize the value of data and treat it as a strategic asset to anticipate and respond to future events.
  • Create the Ultimate Agile Enterprise. Model organization, processes and technology to achieve speed, adaptiveness and stability.
  • Establish a Control Tower. Monitor the regulatory, market, customer and competitive environment to execute with certainty as markets begin to re-emerge.
  • Build virtual branches. Explore the possibility of converting smaller physical branches into permanent virtual branches.

Strengthen the network

  • Rebuild the last mile through collaboration. Demand for last mile delivery has exploded and will likely remain higher than normal after the crisis. Build partnerships to orchestrate a smart last mile network.
  • Rapid adjustments to cost structure. Adopt an accelerated strategic cost assessment and reduction program. Flexible staffing could help with administrative or operational functions.
  • Adapt the Network and Services. Evaluate and re-align network models, locations and service capabilities for the New Normal. Keep monitoring customers’ operations and regulatory bodies to adapt network nodes and services to what evolves.
  • Position for a growing Chinese market while the rest of the world remains in recession. The logistics system in China is already back up and running at around 80-90 percent functionality – and production and domestic consumption is expected to soon follow.

Contact us

Sarah Banks

Managing Director – Global Lead, Freight and Logistics

Christopher Logan

Managing Director – Freight and Logistics Lead, Growth Markets

Tomas Tichy

Managing Director, Freight and Logistics Lead – EMEA
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