How COVID-19 Changed the logistics and 3PL industry?




With the effects of COVID-19, the international supply chain market has broken out in this pandemic. The global air freight volume was down 38.7% year-on-year as passenger flights were taken out of duty, causing air freight rates to surge.

With nonstop air cargo capacity down 44% from the United States into Europe, and 58% in the reverse direction. Charter rates are moving four to six times higher than normal, though we presume rates to come down as passenger air capacity revives some ground in the near months.

Undoubtedly, like many others, 3PL Logistics industry has witnessed acceleration in the digitalization of processes, not just in terms of consumer behavior but also within companies.

The future of 3PL logistics in a post-COVID-19 world

Without a doubt, this has been the most difficult shipping phase for supply chain and logistics experts in the history, but as an industry, logistics companies are continuing to produce and deliver the primary goods that we all need to survive. As tough as the past quarter has been, and though the industry is still far from a full recovery.

With COVID-19 revealing for many organizations that they have a lack of clarity in the further reaches of their supply chain. Technology has a pivotal role to play here. Excellent data analytics will prove pivotal in helping firms achieve more visibility into their supply chains and better alleviate anticipated disruption. Strengthening communications with Tier 1 suppliers is an additional necessary element of improved visibility. When dealing with primary suppliers, it’s essential to properly understand where they source from and any supply chain risks associated.

Actions for shippers to take in preparation for the bounce back post COVID-19

Develop an out-and-out return-to-work strategy - whether you are completely lethargic right now, or just have some piece of your workforce working remotely, you need to document your process and talk with your employees

Communicate with your strategic providers - whether it’s a supplier or a carrier, you need to understand what will be available for you in the coming months, both in terms of inventory and how you’re going to move it.

Add flexibility - find out ways to streamline production. Pare back product lines and minimize SKU counts. Make the transfer with a mind towards in-home consumption. Work with providers that are going to be ready to help you pivot quickly

Have a stable understanding of what money is owed to you - now more than ever, every pound counts, make sure the well-deserved income you earned is getting into your account

Total Freight International is the best third party logistics company offering reliable services to businesses across UAE. Talk to our experts now: www.tfiworld.com

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