5 Tips for Logistics During the Outbreak of Covid

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COVID-19 cases have soared again in Indonesia. This pandemic has significantly disrupted supply chain operations and has had a profound effect on the economy in general. This is characterized by long-term problems coupled with a high risk of uncertainty. This is indicated by the high number of layoffs, bankruptcy of entrepreneurs, to changes in people’s lifestyles which lead to a decrease in the level of demand for goods and services.

A research entitled “Predicting the impacts of epidemic outbreaks on global supply chains: a simulation-based analysis on the coronavirus outbreak (COVID-19/SARS-CoV-2)” conducted by Ivanoc in 2020 proves that supply chain constraints occur along with the spread of the epidemic among the population, and the constraints are associated with supply, demand, and logistics (Ivanov, 2020). In Indonesia, supply chain operations are clearly disrupted by regional quarantine policy, not to mention changes in people’s lifestyles that causes decrease in demands, or even increase at an unpredictable time.

To avoid the adverse effects of the COVID-19 pandemic, companies need to implement strategies to prevent the supply chain from stopping. Especially for companies that control the people’s vital needs, such as FMCG products. According to the research conducted by Cappelli and Cini in 2020, FMCG (fast-moving consumer goods) companies have proven to be the least affected by government policies regarding efforts to limit the spread of COVID-19.

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Then, what are the tips that can be applied to prevent supply chain operations from stopping so as to avoid problems arising due to the surge in cases of this pandemic? Here are 5 tips below:

1. Vaccines and tightened health protocols

The company’s procedures for maintaining business remain focused on staff and client safety first. Staff and clients are required to get vaccinated and follow health protocols so as not to be exposed to the COVID-19 virus.

Staff and admins who can do works from home are strongly advised to stay at home. Occasionally they may be allowed to come to the office if they need to such as picking up documents and ensuring that field work continues smoothly. As for employees whose works cannot be done at home, such as drivers and warehouse admins, they remain working in the field by tightening health protocols: keeping a distance, wearing masks, avoiding crowds, and diligently washing hands, adopting a healthy lifestyle with healthy food and diligently exercising.

2. Making shipping plans based on priorities

The decline in demand due to this pandemic has the potential to cause excessive supply stocks at the beginning. A research conducted by Govindan, et al in 2020 stated that one of the most prominent risks faced by supply chains during the COVID-19 pandemic in various regions is making ideal decisions in determining the quantity of demands for services and goods. In this case, data plays an important role in making shipping plans. For example, if previously normal shipping could be in stock for 7 working days, after the pandemic it increased to 14 working days. The factual data will be used as the basis for making shipping plans so that the supply chain can continue to run.

Priority scales need to be made based on which regions whose demand cannot be delayed and do not have substitute goods to meet the related needs. Communication with the government needs to be established regarding coordination whether there will be a lockdown and regional quarantine. Because if the policy is to happen, it is necessary to prepare an adequate amount of supply until transportation routes are reopened. In addition, if things start to return to normal at some point, companies need to be on guard in case of an explosion in demand that was previously held back due to the pandemic.

3. Making contingency plans

In an effort to maintain supply chain stability, companies need to make contingency plans in case of a surge in demands. If demands suddenly rise, companies should not be surprised and meet the demands unprepared. This will cause rushed shipping of goods, causing congestion and high shipping costs.

4. Moving supplies closer to consumers

The stay-at-home campaign has been popular since the COVID-19 pandemic affected Indonesia. Going out of the house does not necessarily make someone directly exposed to the virus, but the risk of contracting it will become greater. In addition, government policies that continue to change make long-distance shipping risks even greater.

It is time for the logistics industry to consider shifting the concept from long-distance trading to shifting supply so that it is closer to the consumers. Accordingly, the shipping quantity is not as much as before this pandemic occurred.

5. Making the most of technology

In order to maintain supply chain stability during the pandemic, companies need to evaluate whether they have made maximum use of technology. Whether it’s the company’s own logistics software (in-house) or software as a service which is obtained by subscription.

Reference: Read better In House vs Saas!

In the midst of the high risk of uncertainty at this time, companies must perform visibility in order to more quickly read the situation and predict things that might happen. Decisions can be made immediately, problems are immediately resolved. Good visibility can be obtained through a logistics platform based on the Transport Management System (TMS) and ERP integration. The platform provides a dashboard containing supply chain information and real-time monitoring to help companies carry out control & monitoring more easily. This information is factual and actual data to understand the dynamics of demand forecasts as the basis for companies to make strategic decisions in running their business efficiently.

In addition, companies also need to evaluate whether they have maximized the utilization of technology by using Internet of Things (IoT), automation, cloud computing & GPS tracking, etc. By utilizing this technology, companies can make reports more quickly and structured, optimize the selection of shipping vehicles, optimize shipping routes, create online documents, track shipments in real time.

By using a shipping logistics platform shipping can be carried out more effectively and efficiently. Administrative costs can be reduced as low as possible, the supply chain can be monitored in real time from upstream to downstream. Especially during the current pandemic, supply chain control and monitoring must be tightened to overcome the negative impact of COVID 19 on business continuity.

Companies are strongly advised to partner with a technology company that provides a TMS-based logistics platform. Has your company done it? Get free information on logistics platforms to find out more solutions that can help your company overcome the challenges posed by the impact of COVID-19 in Indonesia!

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