The logistics industry will never return to “normal” pre-pandemic conditions and companies that adapt to challenges with modern solutions will be better positioned to thrive.
Expedock’s whitepaper shows that the global impact of the pandemic has hit every industry, and long-term solutions must be put in place to disrupt supply chains. Supply chain was 80% predictable and 20% surprise. Now these numbers are reversed.
Before the pandemic, the average third-party logistics company was 10 to 15 years behind on technology, with a third saying technology was a top business goal. As supply chains have been disrupted by the pandemic, more companies have realized that technology integration should be a higher priority.
85% of businesses are losing money due to supply chain issues due to outdated integration systems and customer service issues. As a result, sea and air freight margins have fallen, operator productivity has declined, and operator turnover has increased.
Logistics companies can take the following actions to manage supply chain variability: Automate responses for consistent customer support and availability, build stronger supplier connections for consistent partnerships, and use technology to automatically check for errors and discrepancies.
Companies will struggle to grow if they can’t keep up with demand and adopt practices that contribute to high customer turnover, the white paper says. Additionally, companies are finding that customer experience is critical because employees are overworked and unable to keep up with demand, employees are disinterested in company goals and customers, or teams lack the insight and information they can provide to their careers. I’m having a hard time keeping up with that aspect.
Without insight, teams can’t identify process pain points, see what features are working well, or provide answers to customers and vendors. According to the white paper, being resilient requires real-time status updates and cargo tracking for shipper transparency, port information to help carriers avoid unnecessary transfers, and competitive pricing for each gig. We need a dynamic pricing model that predicts a certain price.
New technologies can help solve supply chain problems, and companies that integrate the right technologies improve productivity without overwhelming their teams. Technologies supporting logistics company workflows include automation, artificial intelligence, machine learning, data and analytics.