Calm within the storm

2020 has already been a year like no other. ‘Unprecedented times’ and the ‘new normal’ are phrases that in January we had rarely used, yet today form part of our daily conversation and highlight the constantly changing world in which we now live. 

From the initial panic-buying as Covid-19 took hold, to the huge demand for certain products such as flour, pasta, hand sanitiser and PPE equipment, the BCMPA’s search facility and online enquiry form have been experiencing record levels of activity providing huge opportunities for the Association’s logistics members to respond to the wider commercial impact of the pandemic.

Now, having had several months to adjust, members are unanimous in their view that the face of consumerism has changed for the foreseeable future, with the coronavirus crisis driving a huge surge towards online shopping. 

“Even pre Covid-19, e-commerce was already on a strong upward trajectory,” says Mark Catley, business development director, supply chain for UK and Ireland at XPO Logistics. “Now it has accelerated as one of the fasting growing sectors, as consumers have fundamentally altered many of their buying habits to online store purchases.”

Duncan Merritt, contract packing manager, at Clipper Logistics agrees: “The pandemic forced consumers to change their behaviour, accelerating a shift to online that was already under way.

“As a result, they have increased their use of digital and omni-channel services including contactless payments, social commerce, virtual consultations and Click & Collect – behaviours they plan to continue.”

The need to deal effectively with this explosive growth in e-commerce has clearly been a major focus for the logistics sector this year. Alistair Plant, divisional operations manager at Carlton Forest, sees flexibility as being key to meeting this challenge: “Because of the bespoke nature of our 3PL (third party logistics) solutions, and the flexible nature of our warehouse capacity, we’ve been able to support both existing customers and new customers who have sought warehouse solutions with immediate effect.”

Clipper Logistics also highlights the ability to deal rapidly with change as fundamental to supporting the latest demands from customers. “Colleagues were transferred across facilities to support those sites that needed it and continue to service demand,” says Merritt. “In addition, thousands of feet of warehousing space were re-planned.”

Whilst busily adapting to meet the client requirements, the safety of employees and operating within the latest Government guidelines have been paramount for all members. Here too, flexibility and constant communication have been essential, with information passed between sites to ensure best practice was shared in helping to deal safely with the increased volumes across the supply chain. 

“For some customers, peak volumes are now being managed on a nearly daily basis, and by adapting rapidly and with agility we have learnt from each other within our network in order to meet this demand,” says XPO’s Catley. 

Communication across the supply chain has also been central for logistics businesses. “This was an unprecedented time for collaboration,” states Merritt. “We worked with a wide range of customers, suppliers and other logistics service providers to ensure that the overall supply chain wasn’t impacted.”

Clearly the sector has adapted significantly to meet demands in these changing times. Nevertheless, very often the actions taken have simply been how the sector would normally react to new requirements. “We’re pleased to say that the current situation has not really impacted on our productivity at all,” confirms Plant. “If we have faced a challenge we’ve just found a new and safe way of dealing with it and then carried on – business almost as usual!” 

So, what of the future?

Undoubtedly Brexit is a challenge that logistics providers see looming fast, but it is one the industry is facing head on, in particular using the learning from this year as a central part of the process. “Over the past few months, we’ve become even more adaptable than usual in delivering solutions that add value to our customers’ business operations,” says Plant. “With Brexit we are helping through the provision of increased stock and services to facilitate an easy transition; indeed we predict ongoing growth here as the ‘Just in Time’ lean logistics approach is revised in favour of enhanced stock levels and increased resilience.”

Catley agrees that enhanced resilience in the supply chain will be a critical factor. “Brand owners and retailers are very aware of the potential supply issues and are making sure their contingency plans deliver the continuity required,” he points out. “The systematic improvements they have already made will help ensure the system is able to cope, whatever the outcome of Brexit.”

System changes will also be supported by the latest innovation and advances in technology. Clipper Logistics is planning increased automation in its warehouses and distribution centres as part of its long-term strategy to improve fulfilment and eliminate risk for clients. An improved flow of goods through warehouses will free up employees to focus on added value tasks that utilise people’s creativity, critical thinking, and customer engagement. 

XPO Logistics sees technology as part of its DNA, having invested $550 million each year into the latest developments. Autonomous robots are already used to support employees in the transport of goods and help with the validation of products accurately and efficiently, whilst also avoiding repetitive movements among staff. 

Carlton Forest meanwhile also identified the importance of sustainability as part of future technology investment. The company is home to the UK’s first continuous pyrolysis plant that delivers energy from waste to reduce the impact on the environment. “We love innovation, so who knows what the future will hold,” says Plant. 

It is this ability to adapt and embrace innovation and the latest technologies that will continue to drive the industry forward and support the ongoing provision of Value Added Services (VAS). 

“VAS have always formed part of our overall strategy,” says Merritt. “They allow businesses to rapidly evolve, expand and upgrade without investing in expensive technologies or facilities themselves.” 

Similarly XPO Logistics plan to continue developing their VAS offering.

“From co-packing services that deliver efficiencies and reductions in touch points for brands, to dealing with online store returns and getting goods quickly back into circulation, we are always looking to deliver additional value to our customers,” confirms Catley.

In addition, XPO Logistics operates its ‘e-commerce incubator’ as part of its VAS offer, providing access to 3PL fulfilment services for small to medium sized businesses to support for their online sales, which gives them the headroom to develop their brand and build their customer base. 

Initiatives like this are key to the future of the sector and despite the upheavals of the year, there are good reasons to remain upbeat. 

As Plant concludes: “While the industry is facing some uncertainties, it’s important to not lose sight of how much has been achieved in this most unusual of years.” 

And having weathered the storms of 2020, the adaptability, flexibility and responsiveness of logistics providers demonstrate that they are more than capable of meeting the challenges and demands thrown at them in the future.

For more information, visit www.bcmpa.org.uk