Freight and Logistics organizations have been on the frontline since the very beginning of the COVID-19 crisis, keeping shelves stocked and critical production lines running. But the year started with world merchandise trade growth already below trend – and now the industry is facing disruption on a global scale. No business has been immune to the crisis – with profound impact to the Freight and Logistics industry. Supply chains are impacted, and leaders must make rapid, highly-informed decisions to protect and support their people and ensure that critical business operations support the immediate and longer term societal needs.
Listen to Christopher Logan, Managing Director Accenture, outline the challenges for Freight & Logistics companies due to COVID-19 and the steps to overcome them.
Leaders in the Freight and Logistics industry have already excelled by creating Response Centers to monitor, plan and react to every challenge. Organizations are keeping vital freight moving despite huge challenges such as the loss of belly cargo capacity on passenger flights, new regulations and border restrictions.
Protecting people is as vital as protecting the business: providing personal protection equipment and employing new technologies to keep frontline workers, hubs and distribution centers safe is a priority. Where roles and functions can be performed remotely, IT systems must be upgraded to ensure the resiliency and security necessary to support staff working from home.
And costs must be constantly controlled while preparing for a different operating environment - aligning spend to support the immediate needs should be coupled with investments to develop new capabilities and ways of working that seamlessly enable longer-term operational benefits.
Moving from reaction to action
Smart leaders will seize this opportunity to take swift action to position their businesses for greater resiliency and productivity in a future where ‘business as usual’ no longer exists.
There are three major considerations that Freight and Logistics providers must keep in mind as they retool going forward:
Be future ready
Logistics services and delivery models need to continually adapt to meet new health, safety, and food access provisions. But it’s vital to look further and plan for the new normal which will emerge post COVID-19.
Freight and Logistics companies who act and adapt now will lead the way in the supply chain recovery and will be better positioned for a post COVID-19 world of the new normal.