When the Coronavirus started to scale to pandemic proportions, the Chinese New Year was in full swing and logistics companies had already anticipated the shutdown. Logistics companies in Ocala have taken numerous steps to make sure that the consumer pipeline for goods is filled and that customer satisfaction stays as high as possible during this crisis. With the Coronavirus affecting the entire world including manufactures and shipping vessels, prices of certain goods could increase by 15% or more.
Customers have taken numerous steps to make sure that the consumer pipeline for goods is filled and that customer satisfaction stays as high as possible during this crisis.
- Communication: The importance of communication between all parts of the supply chain cannot be overstated. If you’re able to identify where the pain points in your operation would be then suppliers can react. Companies need to be informed on which part of their supply chain has the weakest links.
- Crisis Management Plan: When these plans are put in place and tested this allows for greater ability to cope with a disruption in the supply chain. Recent trade dealings with China have caused many companies to urgently plan and implement their plans sooner than they anticipated.
- Dual Sourcing: Even though it may take two different international logistic companies, two different manufacturers or U.S. transportation companies, logistics and supply chains need redundancy to be able to react quickly to interruptions.
- Rates: Negotiating rates before a crisis will really pay off because the supplier will ensure that its cargo will not be bumped by e-retail giants during a crisis.
We’re able to consider who wins and loses in the world during this Coronavirus and it’s easy to say the strategic advantage will go to the competitor who plans ahead, tests scenarios, establishes a crisis team and implements the plan accordingly. Companies without a plan will most likely feel the effects of the Coronavirus for the rest of the shipping season.
Although it may be a little too late for some companies to create a contingency plan to help with the current COVID-19 situation, companies should commit themselves to the planning that is needed to ensure that they are prepared for any type of supply chain crisis no matter what.