COVID-19 has resulted in a crisis for most businesses. Production and supply chains have been especially hard hit. The production of goods has been stalled. The supply chains of goods have been impaired.
Logistics companies have never faced more challenging conditions than right now. This has resulted in a change of tactics and strategies to improve supply chain management. It’s also opened up learning opportunities to find resilient and safe practices to delivers goods to customers.
Here are some of the logistic solutions companies have implemented to adapt to the COVID-19 crisis.
1. Regional Manufacturing
It’s quite common for global companies to have production plants in the same area. This has helped decrease the cost of production. However, this may not be the best tactic anymore with COVID-19.
When companies have plants in different regions, they are better able to adapt to the severity of the crisis in different locations. One week, Colombia may be the best place to produce. The next week, it might be Brazil.
The agility of regional manufacturing allows us to match supply points with appropriate demand points. The downside of this solution is that it takes a lot of planning. The best first step is for manufacturers to be aware of the status of all their production facilities, and to coordinate responses as the conditions of the pandemic change.
Companies can also find a balance between surplus and lean manufacturing. This means they produce only what’s necessary, rather than having a surplus available. Companies can try better controlling their merchandise by using cross-docking.
2. Embracing 3D Printing
Some logistic companies can adapt to the crisis with the help of technology. Although some have doubted the efficiency of 3D printing, this crisis has proved the worth of this technology.
3D printing helps fill the gaps in the supply chain. For example, the healthcare sector faced major shortages of ventilators. These are intricate products that require time and effort to create. Some companies were able to reverse-engineer 3D-printed ventilators and begin to print more in just a few days!
Companies are using these printers as a back when their operations are hit by the pandemic. In fact, various suppliers have popped up to offer their printing services to companies in need.
3. Safety and Humanity at the Core
Most logistic companies have built their supply chains with cost optimization at the forefront. This can no longer be the case. Supply chains need safety and humanity at the core.
Supply chains are not just systems that move products. There are humans at every corner of the system. These humans need to have safe working conditions so that products can continue to be supplied. And not at the cost of their health.
There is an obligation for logistic companies to find ways to ensure safe practices. This will take collaboration across all teams and a change in processes.
Logistics Companies Need To Prepare
This is a tough time for all companies. Logistics companies need to prepare now to ensure sustainable and resilient practices in all areas of the supply chain. This includes trucking! Preparations will be expensive at first, but it will pay off.
If you’re interested in cross-docking solutions, then you’ve come to the right place! Check out our services here and find more interesting posts on our blog.