Because of recent Corona pandemic, a lot of people had no choice but stay at home and our lifestyles have changed dramatically, such as working from home, online education, and online medical care service etc, so that we can avoid making any crowded conditions.
It is said that even if the virus comes to an end, we won't be able to get back to previous normal anymore unfortunately, and the above new life style will linger on.
However, I'm supposed that we should think of this situation as an good opportunity to make new definitions of our lifestyles and businesses as well again.
Today, I would like to introduce you one article ( in Japanese ) , which is related to new concepts of logistics industry in With-Corona period and in Post-Corona era.
Please refer to https://movochannel.movo.co.jp/supply-chain-management/631.html
( He has been involved in global logistic industry for more than 24 years. )
What will logistics industry become in With-Corona and Post-Corona ?
As you know, firstly aviation industry and travel industry have been affected dramatically and the flight numbers (amounts) reduced by 70% to 90%.
However, even though there was no customers, lots of airplanes have still been running so as to support air-freight logistics networks. Actually it's become a precious source of revenue on aviation industry.
In addition to lack of capacity of air-freight, urgent items such as medical items that sea-freight can not meet the deadline also adopt air-freight recently.
As the result, air-freight fee has become around double compared to before.
It is said that the current situation will be kept for the moment until global logistics networks and lack of medical care items settles down.
Needless to say, retail industry and food service industry have also been affected, too, because most of shops had no choice but close for the moment.
Instead, both of EC and courier industry have been expanding the scale more and more lately.
As we know, many people tend to buy something online more and more and people stay at home, thus redelivery rate has also been decreased.
Also, Amazon U.S.A. employed additional 100,000 workers for its delivery service, and delivery companies have contribute to those who lost a job.
The above article shares with us about 7 changes of logistics industry in [ With-Corona ] period.
#1 : Conventional global supply chain will be reviewed ( In short and medium term )
The moving of people have already been restricted and the restriction will influence ( cover ) to items gradually.
Also, a lot of countries will place importance on protectionism.
Each country will make much of its domestic supply chain and BCP ( Business Continuity Plan ), and they will have safety stock gradually.
#2 : Many people will place importance on " Decentralization ". ( medium and long term )
A lot of people will avoid crowded places to live, and remote working, online education, and online medical service will become common.
Also people will recognized the value of regional towns ( countryside cities ) again, because of low cost and of low risk for the virus.
Decentralization of the population will accelerate, and its supply chain will be also shifted to decentralization.
#3 : People will need " Logistics being free of the virus " ( short and medium term )
Logistics companies will make much of removing virus on item ( or of preventing virus from touching on item ), and it will become a new added value gradually.
In addition, the workers related to logistics will be checked if they are infected always, and it will also become a new added value.
Our quality standards for safety and security will be also changed.
#4 : Delivery " without human intervention " will become common gradually. ( medium and long term )
Many people can feel relieved if their item is delivered without human intervention, because it contributes to prevent the virus from spreading.
Unmanned warehouse, distribution with automatic driving and robot etc, and unattended delivery(item drop service) will become a new standard.
People, if anything, will prefer to receive their item " without human intervention " .
At the same time, many people will probably recognize the value of 3D printing again.
#5 : Delivery " with touchless interface " will be spread. ( short and medium term )
In order that workers will not touch directly something like equipments and items etc at its warehouse or on its delivery, voice command operation, Iot, and IC tag will become more important.
Also, AR/VR/MR, like " touchless interface " will replace conventional direct touch operations.
#6 : Paperless logistics scheme will accelerate. ( short and medium term )
Even though some logistics companies have already adapt to "Paperless" in Japan now, this trend will accelerate dramatically.
Digitalization of shipping label etc will become must, and some wide range logistics platforms which different companies can access will come out.
#7 : Cashless logistic will become necessary. ( short and medium term )
I'm supposed that it's already become common in some countries, even before the virus.
People feel worried about if there is still virus on paper money, thus cashless transactions must accelerate very soon.
A lot of industries have been affected by the virus since April and the virus has not been over yet, but we need to reopen businesses in order to survive.
The current situations are, to be sure, very hard to solve, but it will become some triggers which will make our business models and lifestyles much better at the same time.
I believe that we can create our new standards through some new challenges.
I would say, some predictions could be useful to consider and decide what we should try next.
We would be happy if this tips could be useful to you and your future business.
If your business is related to printing, newspaper, advertising, logistics, delivery, courier, distribution, or wrapping, you are the most welcome to our website as well.
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Have a beautiful day again today you all too.
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Kenta Kanamori from Pressio
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