Logistics service providers will require a mindset of f lexibility and visibility, along with a healthy command of data science, if they want to tackle the new challenges faced in these unprecedented times.“The coronavirus pandemic has upended the world, including supply chains. While we all knew about the complexities of supply chains before Covid-19, the unprecedented interruption introduced even more variables,” said Drew Wilkerson, XPO Logistics president of North American transportation during a recent online conference about the impact of the virus on the logistics sector.
“The most important lesson we have learned is the importance of agility. This pandemic required us to be exceptionally agile with our staff and our customers and it is going to remain important going forward.”
According to Wilkerson, the ability to be f lexible and adaptable has also proven to be essential. “Capacity can go up or down at a moment’s notice and as a logistics service provider we needed to be able to provide it as and when required. We had some of our retail customers who saw their peak season come out of the blue and cargo had to move very quickly. We had to show we had the ability to meet their requests. On the other hand, we had customers who were suddenly in a position where they required logistics for products they had never manufactured before. We moved more than 20 million face masks, for example, for a motor manufacturer.”
Wilkerson said another important realisation had been the need to build in the ability to shift modes of transport at very short notice.He says this has highlighted the importance and need for multi-modal transport as well as a need for a variety of solutions to deal with demand in the moment. “The differentiating factor was t ech nolog y. Companies who have the technology in place have been able to adapt more quickly to this new operating environment.”
Mario Harik, XPO Logistics chief technology officer, agreed saying the pandemic had highlighted the importance of logistics track and trace capabilities.
“End-to-end visibility, no matter what mode of transportation is being used, has been highlighted as incredibly important in our operations the past few months.”
Both Wilkerson and Harik acknowledged that the pandemic had allowed for logistics companies to work more closely and partner more with each other, but also with governments, customers and non-profit organisations. “It has showcased the importance of collaboration in the supply chain,” said Wilkerson.
“Change in logistics is imminent. Customers are looking for scale, flexibility, capability and capacity in fast-changing circumstances. They also want technology solutions that work. Technology investment will become critical in the logistics industry,” he said.“Customers are driving the change as they need all of the above as well as a service that is accurate and cost effective.”While improvisation had possibly enabled solutions that would otherwise not have been solved, across the logistics industry flexibility was winning, said Wilkerson