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Digital disruption in Freight and Logistics

Recently, the digital entrants have been having an upper hand in changing conventional relationships in the freight and logistics business. 
Digital disruption in Freight and Logistics

They usually base their information on findings from the big data, and using cloud and similar platforms to provide their clients with a smooth user experience. Many logistics providers offer ease of access and price transparency along with the promise of a smooth, near real time service experience to gain a customer base.

Still deeply in touch with large manual and efficient processes, they are dependent on many tools without which they cannot compete. With a lot of research behind it, they are aware of the fact that that if they ignore the tech and go on with conventional ways of doing business, they risk losing competitiveness and eventually value and their business altogether. The disruption in the logistics industry is a threat to many conventional business giants unless they use the same tactics to face them. Digital capabilities are of utmost importance in order to face the challenges of digital disruption in a successful manner and the players need to act on it and drive this their way by implementing on the newer tech strategies which others use. This can be a step in their way to consciously and deliberately knowing the act of transformation of their core business.

Since the digital disruption is such a threat to the logistics industry, it threatens the conventional players in the industry and so it becomes really hard to make sense out of the right way to go about it. New, digital entrants are changing the relationships in the freight and logistics business really fast which is becoming a matter of concern. What they offer, built on big data and the cloud and connected platform technologies could pave way for the customers to gain a smooth experience and not only that, they have many things to benefit from such as the ease of access, price transparency, and real time experience. 

There have been many things integrated with the largely known platforms and with the recent research, it has been clear that they could just go on with the usual business practices. To conclude, it is in the best interest for people to keep up with the digital technologies so that their business models can thrive and their earnings can boost. But for anything to happen in a productive manner, they first have to recognize the urgency of the digital disruption challenge. They should always have faith in the digital technologies starting from an early stage before it gets disruptive for their business. 

Impact Of COVID-19 On Transportation & Logistics

The coronavirus pandemic is a situation that is almost unprecedented in the UK and has a huge impact on every aspect of our lives, including public transportation.

The rise in COVID-19 has transformed our cities because people are struggling to avoid infection and keep their friends and family safe while staying at home. Transportation providers must overcome this new normal and its impact extends from staffing to cleaning and scheduling. Transport providers have reported the financial impact of staying at home - what does this mean in the coming months?

Transportation is reduced

Because coronavirus (COVID-19) continues to expand its global reach, its impact is absorbed in every corner of the economy, and global supply chains are no exception. With a sharp decline in manufacturing, exports, and overall global trade, the transportation, and logistics network is being tested. While there are hopeful developments to point to the epicenter of the epidemic, the global economy still has many challenges going forward.

The global lock on COVID-19 has had a major impact on the global transportation network:
  • Passenger movements around the city have almost stopped, with a reduction of more than 90% of movements throughout New York and London
  • Where people have to travel locally, mass transit has proven unable to overcome social distance, forcing the return of cars in the city center
  • International travel is mostly for people whom panic trips to home, with airlines reporting a decline in demand of more than 80%

But while network usage has greatly decreased, transportation remains important during locking:
  • Cities depend on important workers who need a safe, efficient and affordable transportation network to maintain their health and support systems
  • Lockdown has created a surge in demand for home delivery because people still need food and other needs
  • The global supply chain needs to be maintained to ensure that goods continue to move and that the crisis is not exacerbated by shortages of medical supplies or food

City leaders, transit agents, and operators around the world are grappling with this challenge. Although there is no simple solution, an integrated approach is essential to ensure all modes of transportation remain safe and operational.

The Role of the Transportation Network

COVID-19 has triggered significant disruptions in travel requests, while also creating unprecedented operational challenges. Nevertheless, transportation continues to have a key role to play during the current crisis and will remain an important service when the world recovers. Therefore, transportation leaders must overcome the current challenges and drive the evolution of the industry to maintain safe, efficient, and reliable services throughout the crisis, recovery, and so on.

The economic impact will be profound on the public transportation industry

What is clear is that the financial impact of COVID-19 will be far-reaching in most industries, and public transportation is no exception. The results will be expanded from the money generated by ticket sales and parking, to vending machines and transport fines. The effect on employees and peripheral businesses, such as shops and cafes, will also be very large. Transport for London estimates that the financial implications of coronavirus could reach £500 million.

Why Use a Logistics Consultant?

If you want to improve your supply chain, you might have considered using a logistics consulting service. However, you might worry whether it's worth the cost or bring tangible benefits to your business. Here are some reasons to seriously consider using a consultant.

Product knowledge

Working with a logistics consultant who has a broad knowledge base and experience working through problems similar to those you experience brings a number of benefits to your team.

You might receive a lot of literature from salespeople, for example, saying how great their products are, but how can you choose between them? Independent logistical consultants do not sell products and do not get financial incentives from the products they specify, so they can provide objective advice.

A project that is run internally can often be distracted by day-to-day management problems. Bringing a consultant who can focus on delivering results will ensure that goals are achieved faster.

Consultation does not need to take ownership of the project from management. However, as long as management is clear about its objectives and can carefully choose, direct and manage consultants, tangible value can be seen.

When should I use a consultant?

All organizations reach a point when they realize that they can do things better or differently. It may be that one or more operating areas are not achieving their goals or are not functioning as efficiently as possible.

The main reasons for using a consultant usually focus on:
- Complexity
- Time scale
- Expertise
- Resources

Efficient Staff Designation

Problems or problems may be short term. To manage changes effectively and maximize benefits will require intensive efforts, potentially jeopardizing the performance of subsequent operations. Increasing the number of employees permanently to handle short-term projects will increase operational costs. A consultant can assist in managing change until the introduction is complete and the operation has stabilized.

Often specialist knowledge exists within the company but assignments cannot be arranged within the required time period. Consultants are suitable for providing skills that are not available from permanent staff.

Decisions that produce major changes or financial commitments from the company will often involve consultants to review any analysis before the decision is made. Outsiders can ensure that approaches and objective attitudes are taken and that all potential alternatives are known and explored. Often the consultant will find additional alternatives that were not even considered beforehand. At other times, asking consultants to confirm a competent and comprehensive analysis can add weight to the business case.

If a project loses momentum or does not deliver the expected results, a consultant can quickly provide the input needed to get it back on track.

Work with Logistics Consultants

The use of a consultant is unlikely to bring benefits if you ignore the involvement of consultants as an expensive disruption of daily operations. However, if you choose the right consultant or consultation, clearly determine the project objectives, provide the information needed by the consultant, and set aside time to review progress and buy their ideas, the benefits will be seen.

JWS Logistics is a team of independent logistics consultants specializing in all aspects of commercial supply chains. Find out how JWS Logistics can help your company by calling Phone: +44(0)1604 904334, or sending us a message using our Contact Form.

Why Use a Logistics Consultant?

Why Use a Logistics Consultant?

If you want to improve your supply chain, you might have considered using a logistics consulting service. However, you might worry whether ...

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