Getting Out of the Woods
COVID-19 radically changed the workplace and how supply chains operate. Shippers that scale their technical infrastructure and put the customer first will thrive, says a study by Reuters Events and CalAmp. Other key findings include:
Preparedness: Shippers say their logistics solution providers are managing the uncertainty of customer demand, scoring them an average of 72/100. However, providers score shippers only an average of 59/100.
Demand: 51% of shippers say a lack of clarity on customer demand is the biggest bottleneck, echoed by 46% of solution providers.
Sourcing: Dependence on Chinese manufacturing greatly challenged shippers. Without visibility into alternatives or a validated sourcing procedure, companies shoulder potential risks when switching suppliers.
E-commerce: 47% of shippers say they increased their e-commerce operations. U.S. retailers have seen year-on-year e-commerce revenue growth comparable to peak seasons, from a high of 49% at the start of 2020 to 68% by April 2020.
Remote work: Most shippers and providers report a smooth transition to remote work (see chart) and high productivity. However, employees with child care duties and uncertain living arrangements may struggle with productivity in the long term. Creating a digital office environment and social practices will play a pivotal role.