3 Major Challenges Affecting Logistics Sector Amid of COVID-19 Pandemic

Covid-19 is still here with us, and its impacts are still flashing through our minds like a movie show. At the beginning of 2020, everyone woke up with positive energy and a mindset. Everyone had their goals on notepads and diaries. Companies across the globe had their strategies in place; some were planning to open new branches and offices.

Transport and logistics business was doing very well; businesses were importing and exporting products across different nations. All of a sudden, the Covid-19 hit and every company went back to the drawing board. Most of the transport business had to shut down operations and send their staffs for unpaid leaves. Some closed down completely and fired all their employees.

When businesses are experiencing financial constraints, they have to make some tough measures that affect people attached to them, from stakeholders, employees and suppliers. Such actions contribute massively to trigger business challenges.

Impacts of Covid-19 on Transport and Logistics Sector

The global pandemic has been deeply hurting the transport industry. The supply chain is the transport model affected massively. Over the previous years, China has been at the forefront in manufacturing and distributing products and items.

But everyone can remember that it was the epicentre of the Covid-19. After the widespread of the virus, lockdowns followed globally. Can you guess the figures that China lost since then? Infinity, but it was not China alone; the UK is affected, just like China.

E-commerce Growing

It is not always negative; there are some positive impacts as well. The growth of eCommerce has increased over the last one year. When lockdowns were first introduced in the UK, people shifted to online shopping to avoid engaging themselves with unnecessary crowds. The eCommerce sales in 2020 elevated to US$84,885m, and it may rise by 95% by 2040. The eCommerce doesn’t show any sign of slowing soon.

Labour Shortage

With the mega increase of online sales, interests are today shifting towards personalized services and product variety. This creates more opportunities for people across the UK. From the supply chain specialists, warehouse team to HGV drivers. And the biggest challenge that every industry experience is the tough process of recruiting new employees.

There is an immeasurable shortage of labour in the logistics and transport sector, specifically in the UK, where the Brexit program is starting to discourage EU workers. The new immigration guidelines are strict in implementing the points-based system and salary range to limit the number of what they refer to as low-skilled workers they admit into the UK, which affect the HGV drivers.

Technological Innovations

Many inventions have been witnessed and utilized within the logistic and transport industry. The inventions continuously help in improving accuracy, efficiency and offer real-time experience and insights across the supply chain.

The Internet of Things (IoT) is a type of the tech examples that contributed amazingly to the logistic industry. IoT helps in planning, monitoring and boost the security of their operations. It aids in end-to-end product tracking, allowing consumers to track the whole delivery process.

Covid-19 triggered both positive and negative impacts on companies. Some are making forward steps while some are making backward moves. The other impacts may include the cost and level of production. The only way to survive during this period full of turbulence is to cope with every challenge and develop new remedies.