The impact that COVID-19 has had on the logistics industry has been staggering. Whereas some industries like consumer goods, health, and life sciences have seen staggering growth as a result, retailers and various industrial companies have struggled to maintain operations despite significant losses. Depending on what industry your clients are in, they’ve likely experienced numerous challenges with their manufacturing logistics strategy.
The leadership teams for small and mid-size manufacturers and distributors have a great deal on their plates already, particularly with the unknowable challenges that lie ahead due to COVID-19, ongoing tariff negotiations, and other industry trends. While these times are filled with a great amount of uncertainty, it’s nevertheless important that your clients’ leaders are asking themselves the right Logistics questions to understand how logistics fits in with their overall strategy.
Whether you are a trusted advisor to manufacturers and distributors, an investor in those spaces, or a manufacturer or distributor, understand that logistics is the way that businesses move forward — literally and in terms of their strategic goals. The logistics function governs how supplies, products, and other goods get to where they need to be. And just as with any other aspect of business, it’s important to benchmark logistics so you can understand what’s working well and what needs improvement.
Recent events, market conditions, and the mantra to further strengthen and sustain long-term relationships with clients have compelled trusted advisors to get creative and even more proactive with their manufacturing and distributor clients. The very best trusted advisors are adept at bringing ideas and suggestions to their clients in the spirit of helping improve margins, competitive positioning, business valuation, and customer service. In many cases, that means aligning with subject matter experts outside of their wheelhouse.
As if COVID-19 didn’t already turn our sense of normality on its head, companies around the world were already struggling when it came to their logistics strategy. The Amazon effect (ongoing retail disruption), continually shifting government regulations, and relentless competition for and focus on capturing the best opportunities have left many companies that aren’t at the enterprise level struggling — let alone able to create and sustain a logistics strategy that results in positive bottom-line movement.
As a key service provider to your clients, you know what’s keeping them up at night. Finance. Innovation. Talent. Compliance. Cybersecurity. These are just some of the many concerns CEOs and other C-suite leaders are trying to tackle head-on in 2020. Trade and economic factors rank highly among them — and depending on who you’re talking to, some believe it’s the greatest threat their companies will face throughout 2020. But when it comes to the importance of logistics in business planning and strategy, this critical function is often further down on CEOs’ lists than it should be.
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As the saying goes, “What gets measured, gets managed”—meaning, if you want to improve a particular activity, you first need a way to gauge its performance.
Logistics is no exception. A vital part of a company’s business, logistics can have a profound impact on an organization’s operations, not to mention its overall health. That’s why logistics measurement is so important.
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