Top 7 tips managing Logistics during Covid 19 Crisis

Nobody saw this Black swan coming. These are extraordinary and unprecedented times and every sector has being affected by the COVID 19 virus aftermath and precautionary measure of “social distancing” and “lockdown” announced and invariable these are going to have a crippling effect on all economies. This crisis inadvertently is going to change the nature of business and will leave tell tale effects on all.

Organisations will need to adapt to this new reality and re-calibrate their strategies to survive and overcome the impending slowing business scenario.
we have made an effort to highlight some of the top points that Logisticians in Shipper clients and Personnel in 3PL will need to be sensitive and adapt to in these changing business climate.

Top 7 tips on how Logisticians can adapt to the Covid-19 situation:

1. Be Efficient:

Be ready to work with sparse or overworked man-power. Every company management is going to have to prepare contingency plans to keep their businesses afloat, optimize their workforce, prepare for exigencies. Also there would be commutation issues in transporting workforce to the location due to restrictions.
One recourse would be collaborating with partners, using technology that would reduce the dependency on manpower and also drive in efficiency.
This could be implemented for activities in transportation, warehousing, documentation, communication etc.

2. Shorten Loading & Unloading time: 

A study of logistics data shows that logisticians pay 23% in addition to their logistics costs as detention / demurrage charges in better times. There are chances that this could rise further due to un-availability of manpower for loading and unloading, delays, improper coordination & communication. There for logistics manager should keep a hawk’s eye on manpower, the activity of loading & unloading time of cargo to ensure they are no surprises and exigent costs by planning and simulating their activities in advance.

3. Social distancing at workplace:

Covid19 will change the way we work. While factories will work with skeletal staff, the way we work will change. You must encourage communication & coordination using technology to reduce the spread of the virus. Every logisticians should embrace technology & should be trained on how to use it effectively. Every employee should be equipped to complete his / her tasks by working from remote location and also have good control on the activity with vendors, transport drivers etc.

4. Advance Payments & Collections:

With the economy having a liquidity crunch, cash will be king especially in a fragmented logistics marketplace.  Cash / Payments will be of vital importance, ensuring  right documentation of agreements, detention clauses are in force and agreed to. Due to uncertainty and abrupt change in the demand supply you may have to be equipped to give & receive
advance payments to vendors until there is normalcy.

5. Route Planning & Purchasing:

With State Governments adopting various measures to contain the virus viz; Lockdown of state borders, allowing only essential services, Logisticians may have to seek opportunity within territories to keep their businesses rolling. The decisions will need to be made considering external scenario, regulations, the type of goods, reliability of transport partner etc.
Partnering or embracing a Technology platform may give that additional edge for your Logistics and Supply Chain activities.

6. Minimise Risks

These situations have the inherent uncertainty & lead to higher transit times and thereby risks. It may be prudent to cover your transportation with Transit insurance which is a marginal cost and gives you as a shipper better peace of mind. Added to this if you also have the ability of getting visibilty to you shipment its a proposition you would’nt want to miss. Technology platforms like VALUESHIPR offer you all these solutions to have better control on throughput and peace of mind.

7. Penny Wise Pound Foolish:

Logisticians will search for the cheapest transportation in these times and the market is full of fly by night operators. This often cascades into unnecessary challenges later, eventually spending more time, money and effort; making the solution more expensive in retrospect. A smart Logistician will search for an efficient solution & then work to make it cost efficient.

Tough times don’t last, tough people do.

Share how you are making changes in your business processes to survive these times .

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