Future 3PL Factors to Consider post Covid-19

Team Shadowfax

During the lockdown, where did you spend most of your time? Amidst the four walls of a brick-and-mortar business or a digital screened store? It’s no surprise if your answer is the latter, for that’s what the majority of India is doing.

You must have also noticed that the perilous COVID-19 has disrupted your life in ways you couldn’t have imagined. Right from how you purchase to how you do business, things have changed for you and your consumers.

According to a study, 2020 is predicted to witness a 30.6% rise in online shopping in comparison to 2019. What’s more? These numbers are going to affect the operations of third party logistics and those offering 3PL services. Below are some of the important third party logistics factors you need to consider to weather the COVID-19 storm.

3PL logistics
A 3PL partner can go a long way in enabling your business to succeed

Important 3PL Factors To Consider Post COVID-19

Goods Regulations

Post COVID-19, you would be able to resume your productions with the same vigour as before the pandemic. So alternatively, demands from your consumers would also hike up. The problem at hand, however, is how effectively you would ship the products to your consumers across city and state borders while adhering to the novel customs regulations, formed to keep further outbreaks in check.

So, here are some warehouse management guidelines for your benefit:

  • Minimise traffic and avoid mass gatherings in your warehouses.
  • Split up your warehouses into two or three touch points to prevent the crowding of people.
  • Grocery ferries can collaborate with cab-hailers to deliver the products to the hands of consumers.
  • This serves well to limit the colossal volume of vehicles on roads.
  • Uber collaborating with BigBasket to transit passengers while ferrying groceries is a good example of this.

Similarly, you can also partner with a delivery company and a logistics service provider like Shadowfax and seamlessly ship your products across borders.

3PL logistics
Avoid crowding in your warehouse and keep it streamlined

Supply Chain

You can’t deny the fact that the pandemic has disrupted your supply chain, like that of many others. However, post the pandemic, with stable transportation links between all the supplying units, you should be able to deliver the products from the manufacturing unit to the end-users.

Q. What should be your focus of attention — production or transportation of goods?

As your supply chain gets restored, your production rates must increase to meet the increasing demands. So it would only be savvy of you to concentrate on your core business products to regain your economic moat and you can think about partnering with a company that offers third party logistics solutions.

Q. What are your competitors doing?

Just like you, your competitors would also be striving for their share in the market. And current trends show that the majority of the brands are mulling over logistics outsourcing to double their productions.

You shouldn’t get left behind! Outsource logistics to get on par with your competitors.

Omnichannel Experience

As you know, even after the disaster has passed, people are still going to be afraid of all forms of physical contact, either with people, objects, or surfaces.

So, even if you regulate your supply chains and harness your production, you have to ensure an omnichannel experience for your consumers to keep them safe.

Here are tips to achieve this:

  • Localise your warehouses so that your consumers gain easier access
  • Partner with companies like Shadowfax that offers hyper-local delivery
  • You can then deliver your products at the doorsteps of your consumers

This is a serious step you ought to consider because the buying patterns of people are changing.

Consumer Behaviour

India is indeed going to be hit by an economic shock. For this reason, people aren’t going to indulge in more luxury items. Instead, they would stick to only the necessities. Even while buying those necessary items, your consumers are going to prioritise their safety.

Q. How will your consumers safeguard their shopping experiences?

By preferring online shopping over physical shopping, just like you.

Q. If you are a necessary services provider like a grocer or pharmacist, how should your operations change?

You’d have to make arrangements to facilitate home delivery and online shopping. This is because online delivery is going to see a massive rise in Tier 1 and Tier 2 cities.

Q. How can your business effectively scale up by adjusting to changing consumer behaviour?

Online shopping would also go a long way in increasing the penetration of Indian online retail. So, to cost-effectively scale up your on-demand delivery processes, you need to shake hands with dependable logistics partners like Shadowfax.

3PL logistics

Payment Methods

Did you know that South Korea quarantined its bank cash flows and even burnt some of it to curb the virus outbreak?

This just goes on to show how much people care about contactless delivery. That said, you will surely see your consumers shifting to online payment. And you can also expect the demand for doorstep UPI payment options to increase.

So, what’s in it for you?

  • You can’t embrace cash flows for a long time now
  • You’d have to upgrade your systems to facilitate online transactions

Take Away

COVID-19 has not only made physical distancing the norm of life but has also imposed some serious changes in 3PL logistics operations. Taking these factors into consideration, it would be a savvy move on your side to partner with a reliable brand like Shadowfax that is a logistics service provider to upscale your delivery processes. As a smart business leader, this would be a smart decision for your brand.

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