The impact of Covid-19 on the transport industry

At Maxiloda we are fortunate to work with a variety of logistics operators. From the owners and drivers of trucks / trailers to fleet managers, and suppliers to major retailers. In our view the current situation with Covid-19 has accelerated the focus on efficiency and flexibility in the supply chain industry. Goods are now required faster than ever before, and it is clear that as the pandemic and global response gathers pace that the management of stock and distribution is under stress.

There is only so much infrastructure available to manufacture, store, procure, transport and redistribute and major infrastructure takes time to develop and come on line. For now we just have to make the most of what we have.

Alongside this, a major boost in online shopping has caused major stress on the logistics supply chain as a new level of flexibility and customer focus is required. Customers expectations are changing, if you don’t have the products when the customer wants them, someone else will.

There is an increasing understanding of the need to maximise the ability of the logistic chains to move goods quickly, without damage and with flexibility. The types of questions we are hearing from our customers now are;

• Is the use of mega DC’s the best approach or is a more flexible and nimble model required?

• Can we get our products to the customers faster and fresher?

• Should our supply chain be in-house or outsourced??

• The less each item is handled the lower the cost to the end customer, and the faster they will receive it. How can we do this?

There are now far more ways for customers to purchase, importantly there are many new companies that are experts in sourcing and distribution – they are not tied to brands – this high level of customer connection is putting pressure on traditional branded formats that have large expensive infrastructure and complex supply chains.

Covid-19 has accelerated changes to the supply chain that have been evolving over the past few years, e-commerce has exploded – to the point where those companies that can only implement incremental change will soon find themselves left behind. Connectivity, speed, customer focus and flexibility are essential now in any companies supply chain. Maxiloda is loving being part of the growing movement to make this industry more efficient and sustainable for generations to come.