Today, in the midst of an economic crisis in Ukraine and in the world, some small companies being not always prudent may appear. For this reason, it is necessary to pay attention to a number of specific criteria while selecting the logistics provider. Kateryna Boboshko, the expert of the group of logistics companies ZAMMLER specified the principles of selecting reliable logistics partner, enumerated the challenges that may be faced by the company and explained how did the goods delivery cost change due to coronavirus epidemic during the webinar on “Cargo logistics under the quarantine conditions: general overview”.
“Given the situation today, the ability to quickly respond to any changes and immediately find solutions for timely delivery of goods is regarded as the most critical for the logistics provider. While selecting the logistics provider, it is necessary to consider the company experience of doing business in the market, customer and partner reviews. My advice is to choose the operators providing the full range of logistics services (transportation by road, sea, air, rail, warehouse logistics, customs brokerage services) with an extensive network of agents around the world and being financially sound”, – emphasized the Speaker.
Kateryna Boboshko notified that some companies for spending optimization began to consider a possibility of using class B and C warehouse spaces being cheaper than class A warehouse complexes. Besides, according to the Expert, the commodity stock ratio is slightly changing.
“We observe increase in stock of goods of prime necessity (food products, medicines, spare parts, component parts, mobile communications) by 10-12% together with decline in stock of goods manufactured by the other segments by 15-17%”, – stated the Expert.
Furthermore, the Speaker during the webinar explained in details the influence of coronavirus epidemic on all the modes of transportation. In particular, separated the key factors affecting the logistics processes, including:
– ports of entry closing (increase in transit time for the border crossing, raising of tariffs for almost all modes of transportation expect the road transport, enterprises logistics chains disruptions);
– international borders closing (reduction in number/cancellation of flights, places-for-cargo shortage at the aircrafts, failure to meet the delivery dates specified by the contracts);
– remote work and reduction in force (drop in production, increased deadlines for carrying out of specific activities, reduction in consumer purchasing power).
In addition, the Expert shared the operational experience of the group of logistics companies ZAMMLER during the epidemic and gave an advisory opinion how to find new business opportunities even in a crisis environment, in particular: do not expect quick crisis resolution and adjust to new realities, correct the mistakes made while implementing the previous business model, develop new company strategy having regard to the worst-case scenario, care the company image as the most valuable assets.
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