The logistics industry in 2020: halftime score
We almost enter the month of June and are almost halfway the year 2020. Up until now, this year has brought different challenges for almost everyone. However, about one thing we can be sure: the coronavirus has ruined almost all plans and predictions of 2020. Or did it not? Before the start of the year, analysts wildly speculated about the trends of the upcoming year. How many of those trends can still be seen in the logistics industry? And what do we have to keep in mind during the second half of the year?
Coronavirus vs economy: 1-0?
December last year, the Dutch bank ING predicted a growth in revenue of 2% for the logistics sector. However, the Rabobank predicted a slight decrease in the reach of the sector (0,6%). Now, almost halfway in 2020, these predictions can be thrown in the trashcan. Besides, the coronavirus makes the differences in the logistics industry even bigger. Some e-fulfillment businesses are flushed in work while other logistic service providers can barely keep their heads above water. Research says that 70% of the logistic service providers are affected by the corona crisis. That results in red figures on the corporate result in comparison to the year before. Logistics service providers see an average decrease in revenues of 30% in comparison to the same period in 2019.
Time for the counter attack
The numbers are quite negative, but there is light at the end of the tunnel. The importance of the logistics industry has come to attention more than ever. Besides, the logistics industry is one of the first industries that will benefit from a stabilizing and growing economy, as says Jan Fransoo, professor at Kühne Logistics University in Hamburg. Furthermore, the industry will already grow at the end of the year and next year. Predictions are that, after a loss of approximately 9% over the entire year, the industry will grow around 4% next year.
Using the right technical tools
The current corona crisis, and the regulations that have come along with it, do not only bring problems. It also brings out the best in our creativity, perseverance and solidarity. It does so in the logistics industry as well. As a logistic service provider, you find innovations, ideas and tools everywhere you look. All to keep your business going while social distancing. Therefore the earlier predicted trends could find their way to the logistic field earlier than we think.
Your software plays a big role in this and the second half of 2020 this will only get bigger. You used to use your software to optimize the efficiency in, for example, your warehouse. However, in the next period you will have to use your software to keep your employees safe as well.
For example, you can use order picking per zone to optimize your warehouse process, but also to make sure your employees do not work in the same zone or closely to each other. Furthermore, with a smart strategy applied in your WMS, you can correspond your expedition locations with the docks where the order must be loaded. This does not only increase the traceability, but it also prevents your employees from traveling from a expedition location on one side to a dock on the complete other side. By minimizing the distance, you immediately minimize contact between employees, work according to the regulations and increase your efficiency.
The ball rolls again
Now, the economy is slowly opening up again. This will continue in the second half of 2020 and the logistics industry will benefit from that immediately. However, prevent your business from being tackled by a similar crisis in the future. Make sure your software offers the possibilities to be flexible an to give tools to work according to the measures that should be taken, while increasing the efficiency in your warehouse. Do you want to learn more about the Boltrics solution and what it has to offer? Mail to email@example.com and make the shot.