Logistics Post the COVID-19 Pandemic

Covid-19 Logistics

In the few months that the pandemic has been around, it has completely changed our global economy, impacting every industry in some way or another. During this time we have seen people having to completely change their lives and adopt a new normal that will continue after the lockdowns have lifted and borders are open again. With post COVID-19 on our minds, how will the logistics industry look? We shed some light on some changes we can expect to see post coronavirus.


Decrease in Single Sourcing

As the first country affected by COVID-19, China was hit especially hard by the pandemic, and manufacturing shutdowns impacted many countries and businesses who imported goods from China. Moving forward, we can expect to see companies trying to lessen their dependence on China by sourcing goods from other Asian companies, or locally. This will be especially apparent in the pharmaceutical industry, with China supplying more than 80% of active ingredients for anti-biotics before the COVID-19 pandemic. We can expect to see more pharmaceutical products being produced in Europe in the near future.


Larger Inventories

When the lockdown was enforced, companies who had low inventory levels and had stretched their supply chains were hit hard. Due to this, once the lockdown has been lifted and going forward we can expect to see companies increasing their inventories to keep more stock on hand as a safety buffer, especially when it comes to essential items such as pharmaceuticals. We can also expect to see larger companies buying smaller rivals, and more businesses filing from bankruptcies. This will create an increase in concentration of power among fewer companies, narrowing consumer choice in the COVID-19 logistics market.


E-commerce Will Become More Popular

During the lockdown, many stores have enabled an e-commerce element, selling goods online and delivering to people so that they don’t have to leave their homes. Now that consumers have gotten used to having almost everything delivered, from clothing to groceries and everything in between, we can expect to see this becoming a new norm. Companies who have online stores and offer quick delivery will be able to capture a new market of consumers. With many businesses struggling and looking to get back on their feet, not having to rent a store, but rather having some storage facilities, might also be more cost-effective.


Faster Adoption of Technology and Increased Digitalization

Businesses who have been quick to adopt technology and digitalize have fared better during the pandemic, made being able to work remotely a lot easier, as well as enjoying the cost saving benefits when things have been especially tight. Post COVID-19, companies will be quicker to adopt new technologies that will help their business and digitalize.


When it comes to digitalizing your logistics, look no further than TSI Central Station. For more information on our technology, services and expertise, send an email to pricing@centralstation.co.za.

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