The COVID-19 pandemic of 2020 has extended into 2021 and has wreaked havoc in virtually every corner of the globe. Businesses, both big and small, have suffered, and many have scrambled to find ways to deal with the changes the virus brought about effectively. Early on, when the United States started to be affected, suddenly there was a shortage of toilet paper, paper towels, personal protective equipment (PPE) — such as masks, hand sanitizer, and anti-bacterial wipes — and even staples such as orange juice. Some businesses were caught flat-footed, while others quickly adapted to the “new normal” and made quick changes to ride out the crisis.
However, it’s not going to simply be a case of “everything going back to normal” when the immediate health crisis has eased up — the world has turned a corner, willingly or not, and now a new paradigm is in place. That change is seen in the growth (not to mention ease) of ordering virtually anything online. With all the restrictions and fallout from COVID-19 (lockdowns, nonessential businesses closed, social distancing, etc.), consumers quickly realized that online ordering and delivery was easy and convenient and, in some cases, the only game in town.
E-Commerce Is on a Serious Growth Trend
In the overall scheme of things, online shopping is a relatively new phenomenon, which, for the most part, kicked in right when the internet became mainstream. Before 2000, it was a minor part of any retailer’s profit; however, that has changed drastically. According to McKinsey, e-commerce numbers in the U.S. have grown from 1.3% of total sales in 2000 to over 14% in 2019. Today, it is a normal part of business, both for the consumer and for the supplier.
Strategies for Shipping Companies
For the suppliers of consumer packaged goods (CPG), this sudden disruption has forced new rules for getting products to the end user’s doorstep. Since the dust has started to settle on the pandemic, suppliers and shippers need to consider what lies ahead (most likely paired with an upward trajectory on the numbers/percentage of online sales) and plan accordingly.
If the COVID-19 pandemic taught us anything, it’s that an entire industry can change in the blink of an eye. When the brakes slammed on many industries as fear set it, a whole new way of doing business took effect — almost overnight. Suddenly, consumer demand for online ordering and delivery skyrocketed, and only the most agile suppliers weren’t caught flat-footed.
With this increased need to keep up with orders, along with planning to keep pace with the growing trend of online sales, there are a few things that companies should keep in mind when it comes to their shipping and logistics and keeping up with the increased shipping demands.
Inventory Management
This includes the ability to maintain inventory of the items most requested by consumers. Of course, this may represent having to alter or redirect deliveries on the fly, depending on the circumstances. This also means the possibility of adding capacity to areas of the business that find themselves short. The goal of all of this is to deliver seamlessly and reliably, hopefully hitting pre-COVID-19 delivery benchmarks.
Maintaining Safe Working Conditions
Keeping the workspace safe means something different in 2020 than it did any other previous year. Nobody wants their workspace compromised by a virus, both to protect workers’ health and to avoid slowing down business and shipments. Keeping current on regulations and following the recommended guidelines is vital to operating a fully-functional facility and moving your supply chain.
Look To The Technology
With the increase of online shipping and demand over the past two decades, considerable improvements in the available technology have provided cost savings and greater efficiency. Supply chain management, which includes hardware and software components, has become a vital part of any company involved in shipping products. It provides cost savings and timely (and increasingly accurate) reporting and tracking, resulting in faster, more on-target delivery times. This, of course, leads to increased profits along with boosting consumer goodwill.
Partner With a Trusted Third-Party Logistics (3PL Firm)
Outsourcing your supply chain to a 3PL firm to handle your distribution, warehousing, and fulfillment services makes sense in times of unprecedented change. Because a 3PL company is in business full-time to handle that complex part of logistics and inventory management, it can quickly scale up (or down) depending on external factors. It saves your company the hassle of pivoting to deal with a fluid situation out of your control.
In Closing
In uncertain times, the ability to remain flexible is one of the many keys to success. Using all the tools at your disposal, including a trusted 3PL partner, will help you stay focused on your core competencies and help build customer goodwill for your company.
Chris Capelle is a technology expert, writer, and instructor. For over 25 years, he has worked in the publishing, advertising, and consumer products industries.
References:
https://www.accenture.com/us-en/about/company/coronavirus-business-economic-impact