2020 has been one of the more interesting years in recent times, the coronavirus has left an impact on the logistics of different supply chains globally. Many companies had to adapt their distribution and freight forwarding methods to accommodate the pandemic and the economic downturn. Despite this, an opportunity for learning also arose.
This year came as a surprise to many companies that had to suddenly stop or limit their production due to lockdown. With no production, revenue will not be generated, and companies may close due to bankruptcy. Numerous businesses closed various stores across the nation because they were not ready to handle such a situation. Planning means having a contingency plan in case a catastrophic event like the coronavirus occurred.
Using More Digital Supply Chain Technologies
Being up to date with the current happenings of your supply chain can save time and capital loss. With employers in quarantine, this task became more demanding than before. The solution was to have workers do their jobs remotely. The current progress in working remotely may lead to a greater reliance on overseeing and communicating with the supply chain digitally in the future.
Being Creative Amidst the Chaos
One of the biggest lessons that can be learned from the pandemic is how to be innovative during uncertain times. Many different techniques were used to keep the supply chain processes running, here are a few examples:
- Diversification: The economic downturn created a scenario where jobs had to expand their services to combat the current situation. Restaurants started to sell take-home meals for the first time and breweries started making hand sanitizer from ethanol.
- Reshoring: When a supply chain is spread out across different countries or continents, the time it takes to allocate the goods to the required destination may be longer than if the goods were in-sourced from the same area. Especially with the current shortage of production, reshoring can help speed the process.
- Remodeling: Instead of diversifying or reshoring, some corporations renovated their whole supply chain. Suppliers and vendors were substituted for cheaper means of distribution and methods of transporting freight were changed from ocean to air or land.
Navigating the logistics of a supply chain may sometimes be difficult and confusing to do without proper guidance. A1 Worldwide Logistics is a customs brokerage that is here to make that process easier. Call us at 305-821-8995 for your freight forwarding or customs brokerage needs.