The pandemic has completely changed supply chains and shown their vulnerability. Forward-thinking companies can use these conditions to build flexible innovative processes and systems.

In the pursuit of maximum efficiency, supply chains have become global, multi-layered, yet ‘fragile’. The majority of specialist component suppliers are located in China. This has led to a lack of transparency in supply chains and a lack of capacity in Europe to produce individual components. At the same time there are a number of conditions destabilising supply chains, such as:

• US-China trade war;
• At the beginning of the pandemic, supply from China was disrupted, leading to high demand due to the closure of Western European economies;
• At the beginning of the pandemic, there were not enough goods for regular departures by sea, which forced logistics suppliers to reduce their transport capacities and created the conditions for a subsequent whiplash effect;
• As a result of the faster-than-expected recovery, a shortage of transport capacity from China to Europe has emerged, leading to a several-fold increase in transport prices and a continued lack of transport options;
• Supply disruptions in the automotive industry have led to a huge slowdown in the production of heavy-duty vehicles – tractors, trailers and containers;

Concurrent with the above, the production of low-value labour-intensive goods is shifting from China to Vietnam, Thailand and Indonesia, but this has come at a cost.

There is a reorganisation of distribution channels towards the prevailing direct-to-customer strategies and a shift of goods from store networks to warehouses for internet orders.

All of this is necessitating a shift in supply chains towards diversification of risk versus supply and underwriting, leading to increased cost of services.

In this turbulent economic environment, technology, innovation, simplification and digitalization of processes are key to success. Companies that take this path will become more competitive and win.

Alexander Logistics responds to the emerging needs

As one of the leaders in logistics services, Alexander Logistics has undergone a total redesign of its business processes and its IT infrastructure by implementing innovative technology solutions:

• A new TMS, CRM, WMS system with a multi-layer architecture that allows access on all types of end devices;
• New WEB portals for customers and self-service;
• New WEB portals for partners in supply networks;
• EDI B2B communications with customers and partners;
• Mobile apps for real-time tracking of end-to-end deliveries.

Follow our website, blog and LinkedIn page to find out more about the innovations Alexander Logistics is developing and implementing in response to the changing needs of global business and logistics.