2022 Trailblazer Award Winner
How do you react when suddenly your customers have shipped practically everything from your facility and their supply chains are unprepared to manufacture to levels capable of replenishing stock levels? When left with a completely or partially empty distribution warehouse with rent and payroll expenses, what do you do to get back on track? You adapt. It is even possible to thrive. COVID-19 and its implications taught lessons about resilience and adaptability. Unusual buying behavior caused by consumers’ concern over COVID-19 led to an unfamiliar strain on supply chains. Cross functional operational best practices and diversification of services for 3PL warehouses were needed to navigate the new frontier. Manufacturers’ agility was tested because of strained back-end supply chains of raw materials suppliers, the need to immediately convert production lines, absenteeism due to spreading contagion and increased demand for trucking services. Disruptions to the nation’s food supply chain during the national emergency influenced a new way of thinking about inventory. New opportunities emerged for agile 3PL warehouses. 3PL warehouses traditionally focused on conventional retail distribution shifted focus on strategic growth plans of their ecommerce services. Never in recent history has any other crisis tested the modern food and CPG supply chain like the COVID-19 pandemic. The crisis pushed supply chains to be more flexible and exposed some weak links. COVID-19 prompted companies to reevaluate systems and processes to improve how they execute if faced with another national or global calamity in the future. In the wake of supply chain disruptions caused by COVID-19, many companies are looking to bring production of off-shore materials and finished goods back to the United States. Ingenuity and adaptability, paired with diligent planning and execution will continue to empower 3PLs to play a vital role in our economy, post-pandemic. The forecast for 3PLs is bright.
MEASURABLE RESULTS AND OBJECTIVES ACHIEVEMENT:
This white paper opened the door for an IWLA webinar and an additional opportunity to author a similar article for Ackerman Warehousing Forum. Although the goal is always lead generation, our real intention was to continue building brand awareness and perception of The Shippers Group as a leader to manage the crisis with agility and resilience. Analytics:
BLAZING A TRAIL!:
This white paper, like no other, addressed the unique challenges for 3PL warehouses at the onset of the COVID-19 pandemic. It provides specific examples of the importance of collaboration with manufacturers, how the evolving pandemic impacted labor, productivity and profits and the impact to food and consumer packaged goods supply chains. The paper illustrates the foundational strength and strategic thinking of The Shippers Group, and it sets the company apart as a thought leader in the mid-tier 3PL warehousing sector.