The pandemic has been an incredibly challenging year for many sectors. Businesses that have not been able to adapt have rapidly ceased operations. The transport and logistics sector has, for the most part, come out the other side of the pandemic quite well. Robust adaptations and a willingness to be versatile has allowed companies to persevere.
In this article we’ll be discussing the impact that Covid-19 has had on our industry, and the changes that the transport and logistics sector had to make in order to persist and thrive through unprecedented difficulties.
Adoption of Online Shopping & E-Commerce
While the high street was already suffering before the pandemic, Covid-19 has proven the last nail in the coffin for many businesses that weren’t able to adjust.
Fortunately for the transport and logistics sector, more e-commerce necessitates robust & consistent logistics in order to provide the service that customers demand. More people than ever are turning to online shopping for everything – groceries, clothes, gifts and more. Higher demand means that businesses are relying on storage and delivery services in order to remain operational.
This ‘new normal’ has continued through into 2021, and is likely to become a mainstay as people become accustomed to the convenience of online shopping.
Hospitality & Logistics After Covid-19
Despite consumer habits shifting towards staying in & shopping online, people still need to eat! Many hospitality businesses have managed to continue through the pandemic and, as things start to open up, are beginning to thrive again. While restaurant & hospitality deliveries ceased for a period, things are recovering quickly as lockdown is eased.
Transport and logistics have always had a close relationship with the hospitality sector, and this is looking to continue well into the future; if the pandemic has taught us anything, it’s how much we love eating out!
Use of Technology in Day-to-Day Tasks
Social distancing measures and safety concerns have altered the way many of us conduct our daily business. Technology has played, and will continue to play, an important role in how the logistics sector will develop. Adjusting to digital meetings & organisational methods in order to meet consumer demands has proven convenient, successful and cost-efficient. This innovation and accessibility has broadened the scope of what can be achieved in a shorter time.
In addition to this, end-to-end technologies such as product tracking (that allows consumers to accurately track their packages) have increased transparency in the sector, promoting distinct lines of communication between businesses and customers that otherwise wouldn’t exist.
Building on this theme of technological improvement, the rise of artificial intelligence has helped logistics companies to identify patterns and trends, adjusting their processes to suit. This benefits everyone – consumers get a more efficient service, and the business becomes more profitable.
Contingency Logistics
While supply chains were ordinarily maintained via just-in-time supply chains, businesses are now gravitating to less risky contingency planning. This is largely in response to the huge impact that the pandemic has had on manufacturing in China where many businesses relied on production from the country which suddenly stopped as travel restrictions were tightened. Just-in-time supply chains are where companies store as little stock as possible, restocking at precise times in order to meet consumer demands. This worked great pre-Covid, but in a world where supply chains have been notoriously uncertain, many businesses are adjusting their logistical storage solutions to compensate.
Companies are now utilising contingency logistics in order to ensure that their stock levels remain consistent, and their businesses can continue to operate. Contingency supply is the opposite of just-in-time supply; businesses store far more than they need to ensure that they always have supply. However, more stock means more storage space is required. This means that businesses looking to function this way will likely need more warehouse space in order to cater to their needs. Others, who have specific perishable goods requirements, have sought the help of temperature controlled logistics specialists in order to efficiently store chilled and frozen goods.
Green Energy and Sustainability
As a result of a relative boom in transport and logistics, many companies are facing both consumer and government pressure to reduce carbon emissions. Logistics businesses across the UK and EU are actively developing many green alternatives, including, but not limited to:
- Clean energy sources (such as solar panelling)
- Sustainable packaging
- Green distribution centres
- Reducing air miles
- Incorporating electric/hybrid vehicles into fleets
Many larger conglomerates and smaller companies are looking to adjust their operations to accommodate increasing pressure to become more sustainable.
Changing Tariffs in International Trade
In response to Covid-19, Brexit and a variety of other factors, many countries will be looking to impose stricter regulations on imports and implementing increased tariffs in the UK. Many of these restrictions are likely to impact logistics companies a great deal, and may make international trade either impossible or less attractive to many businesses. There’s a chance that we see a big focus shift to domestic trade, especially for smaller companies.
Quality Temperature Controlled Logistics & Storage with SUBZERO
In an ever changing sector, we understand the need for both consistency & flexibility. That’s why at SUBZERO, our focus has, and always will be, on delivering customer focused, bespoke solutions for businesses throughout the UK, no matter the size.
With decades of experience, we understand the pressures that you’re under. Whether you’re looking for temperature controlled delivery, or expert cold storage, we’re here to provide exactly what you need with a scalable service that suits you.
We’d love to hear from you. If you’ve got any questions, or would like to learn more, get in touch with one of our friendly team by clicking here!
