Post-COVID19 Supply Chain Trends

Apart from the global disruption of goods and services during COVID-19, many weak links and vulnerabilities have been revealed in organizations, Supply Chains being one of them. While some businesses were able to adapt with the changing circumstances and saw it as an opportunity for growth and innovation, others were not so lucky. Some organizations had to rethink about their processes and analyze things in a different light. But here is what was found out: Inclusion of Technology drives power into Supply Chain Networks. It has been pivotal in anticipating, sensing and responding to the unforeseen pandemic scenario, while minimizing the impact at the same time.

The second global wave of lockdown has already prompted retailers to hold products at origins and halt shipping until early 2021. This is triggered by a steep increment in ocean tariffs and the lockdown of non-essential stores also had a negative impact. Here are the key trends that will shape the supply chain and logistics in 2021:

  • Shifting from single-channel operations mode to dynamic e-commerce model:
    This transition is occurring fast. It’s clear that the tech landscape of pre Covid-19 was inefficient for this new normal. There is a dominant shortage of collaborative and contributive tech tools, which can build ecosystems across data silos. Logicsols Digital Platform can be an effective growth partner for organizations. Collaborators are predicted as the winners in 2021 and the year to come. 
  • High volatility is expected in freight rates:
    All modes of transport will experience frequent jumps in freight rates. The shortage of ocean containers will become more common between markets, demanding higher rates. The airfreight market will similarly remain high until passenger aircraft traffic gets back to normal.
  • The supply chain and the new pressure test:
    The post-pandemic era will standardize the practices of preparedness and frequent pressure tests. The distributed global business model, optimized for minimum cost, is diminishing. Tomorrow’s model demands new priorities in optimization. The volumes will become more unsteady, more adaptive supply chains can only cope-up. Large suppliers and logistics operators of the industry are advised to be ready for any major catastrophic events or unseen events of social unrest and linked disruptions.
    The need is to have comprehensive dashboards that lay out the full status of production and shipment, down to the last detail. Logicsols Solution offers dashboards that provide real-time overview of the entire supply chain.
  • Rapid consolidation of 3PLs:
    Traditional players will be tested; and on failing either to adjust or to transform will make them go obsolete. The 3PL industry is expected to split between the ones that focus on customer solutions against the ones aimed at hard-core execution. The companies quickly adopting to the transforming technologies are ones destined to survive.

The supply chain, which was often underrated to a mere organizational cog, on the contrary emerged out as a stakeholder of definitive roles amidst the pandemic. Major learning is that most of the organizations were not prepared to handle this kind of an adverse situation and lacked the interconnectivity for supply chains. So, in order to thrive in the long run, one needs to adapt in a dynamic environment.

Supply chains will have to bean integral part of the corporate strategies. Foundations will have to be laid down in order to rethink a company’s technology approach in order to allow innovation at a low cost and faster go-to-market strategy.

COVID-19 has changed a lot of things around us, but we should be prepared to adjust with that change. There is no denying that the transitioning for businesses to digital platforms will be a challenge and businesses should be ready to invest in their future, embrace the new normal and be prepared to thrive and shine in coming years.