{"id":13470,"date":"2020-10-01T19:34:00","date_gmt":"2020-10-01T19:34:00","guid":{"rendered":"https:\/\/camms.bubblestaging.com\/?p=13470"},"modified":"2023-09-19T11:48:46","modified_gmt":"2023-09-19T11:48:46","slug":"transport-and-logistics-organisational-resilience","status":"publish","type":"post","link":"https:\/\/camms.bubblestaging.com\/en_au\/blog\/transport-and-logistics-organisational-resilience\/","title":{"rendered":"Transport and Logistics: The tipping point of 2020 for organisational resilience"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"13470\" class=\"elementor elementor-13470\">\n\t\t\t\t\t\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-469eaff elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"469eaff\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-8070c3e\" data-id=\"8070c3e\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-32c5dc3 elementor-widget__width-initial elementor-widget elementor-widget-text-editor\" data-id=\"32c5dc3\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.14.0 - 26-06-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>Transferring products from A to B quickly and efficiently is the name of the game in the constantly moving world of transportation and logistics. Unfortunately, a myriad of variables means this process is rarely as easy as ABC at the best of times \u2013 and 2020 is proving more algebra than alphabet. Navigating a clear course within the sector has never been so challenging. Existing risks have been overshadowed \u2013 or in some cases accelerated \u2013 by an unprecedented global event that has brought the importance of organisational resilience into sharp focus: the COVID-19 pandemic.<\/p>\n<h3>The pre-pandemic risk landscape&nbsp;<\/h3>\n<p>The&nbsp;growth of the&nbsp;transportation&nbsp;and&nbsp;logistics sector&nbsp;has been driven by some of the most significant business trends in recent times: the rapid development of digital technologies, globalisation, the evolution of sophisticated supply chains, and the rise of e-commerce. But it hasn\u2019t been all plain sailing.<\/p>\n<p>With progress comes change, and with change comes risk. New technology, new market entrants, new customer expectations, and new business models have given rise to a wave of challenges that require proactive organisational resilience strategies \u2013 from demand for&nbsp;a better service at a lower cost&nbsp;and the need to finance&nbsp;\u2018digital fitness\u2019&nbsp;to customers establishing their own logistics operations.&nbsp;<\/p>\n<p>If that wasn\u2019t enough to keep&nbsp;executive leaders and risk professionals&nbsp;busy, the UK and EU have been grappling with an unprecedented period of political change in the shape of Brexit. The uncertainty surrounding this historic \u2013 and extremely divisive \u2013 event has spawned major operational concerns: delays at ports, mandatory border checks, availability of drivers and their eligibility to operate, and processing the required paperwork.<\/p>\n<h3>COVID-19 puts the breaks on&nbsp;<\/h3>\n<p>In the dynamic world of risk and resilience, anything is possible. While whispers of a virus in China were uttered in late 2019, as 2020 dawned it was still Brexit et al. that were considered the most immediate risks to the&nbsp;transportation and logistics&nbsp;sector. By March, however, organisations were forced to do a U-turn after the rapid spread of COVID-19 precipitated lockdowns across the globe.<\/p>\n<p>These government-mandated emergency measures triggered sudden complications for the sector:&nbsp;international travel restrictions, declines in oil demand,&nbsp;interruptions&nbsp;to operations,&nbsp;and&nbsp;damage to&nbsp;supply chains. To complicate matters, they also sparked a sudden surge in the use of&nbsp;e-commerce and home delivery services&nbsp;by consumers attempting&nbsp;to avoid potential health risks&nbsp;\u2013 increasing demand and leading the UK&nbsp;government&nbsp;to&nbsp;assign many within the sector as \u2018key&nbsp;workers\u2019.&nbsp;<\/p>\n<p>Let\u2019s take a closer look at how some of these disruptions have manifested themselves:<\/p>\n<ul>\n    <li>Supply chains:&nbsp;disruptions to manufacturing&nbsp;have&nbsp;rippled through global supply chains. Shutdowns&nbsp;during the&nbsp;pandemic have&nbsp;revealed how fragile lengthy, complex supply chains can be \u2013&nbsp;and how much society&nbsp;relies&nbsp;on them remaining efficient.&nbsp;Even when factories and warehouses reopened, social distancing protocols \u2013 introduced to ensure the safety of workers \u2013 have contributed to bottlenecks for freight.<\/li>\n    <li>Land freight:&nbsp;trucking capacity has been strained by additional demand \u2013 particularly for food and medical supplies \u2013 combined with reduced employee availability. For example, in India, lockdown restrictions created a shortage of truck drivers, resulting in a build-up of over 50,000 containers in the ports of Chennai,&nbsp;Kamajarar, and Kattupalli.&nbsp;<\/li>\n    <li>Shipping:&nbsp;global ports have imposed operational restrictions, leading to shipping capacity reductions.&nbsp;For example, total container volumes handled at Chinese ports fell by more than 10 per cent in the first months of 2020.<\/li>\n    <li>Airfreight:&nbsp;lockdowns resulted in a 19 per cent fall in air freight volumes in March, due to widespread cancellations in passenger flights \u2013 which carry freight as belly cargo \u2013 combined with a drop in manufacturing in China. While air freights have&nbsp;increased, as&nbsp;governments turn to air cargo for essential goods, some carriers are experiencing delays caused by increased congestion at airports.<\/li>\n<\/ul>\n<h3>How&nbsp;can&nbsp;the sector&nbsp;get&nbsp;back on track?&nbsp;<\/h3>\n<p>Looking ahead, organisational resilience planning for the&nbsp;transportation and logistics&nbsp;sector must have supply chain resilience at its core \u2013 from production and storage to shipping and delivery. Proactive measures that can mitigate the impact of similar events on&nbsp;intricate networks&nbsp;in the future include:&nbsp;<\/p>\n<ul>\n    <li><strong>Stock building:&nbsp;<\/strong>this practice of building up stock facilities \u2013 such as warehouses and external storage \u2013 is commonly used to reduce risk and build resilience during uncertain times.<\/li>\n    <li><strong>Automation:&nbsp;<\/strong>technology such as&nbsp;automated guided vehicles (AGVs)&nbsp;and&nbsp;automated storage and retrieval (ASRS),&nbsp;increase efficiency, speed, accuracy,&nbsp;and productivity by reducing human error and intervention.&nbsp;Automation also addresses labour shortages by mechanising highly manual and repetitive processes.&nbsp;<\/li>\n    <li><strong>Dynamic and near sourcing:&nbsp;<\/strong>the pandemic has highlighted the difficulties associated with being dependent&nbsp;on&nbsp;just&nbsp;a few&nbsp;international&nbsp;suppliers.&nbsp;Dynamic Sourcing helps&nbsp;businesses&nbsp;overcome the risk of discontinuity in supply by allowing them to&nbsp;switch suppliers dynamically depending on&nbsp;the&nbsp;circumstances.&nbsp;Near sourcing&nbsp;reduces the risk of disruptions by&nbsp;helping&nbsp;businesses&nbsp;work with&nbsp;alternative&nbsp;suppliers in the local market.&nbsp;<\/li>\n    <li><strong>Embracing e-commerce:&nbsp;<\/strong>the convenience and efficiency of e-commerce is forcing businesses to&nbsp;rethink their overall sales and distribution strategies&nbsp;\u2013 a trend that has been accelerated by the pandemic. E-commerce is not just here to stay; it\u2019s growing exponentially,&nbsp;and companies&nbsp;must&nbsp;adapt to&nbsp;survive.&nbsp;<\/li>\n<\/ul>\n<h3>Driving positive change using technology&nbsp;<\/h3>\n<p>How can&nbsp;a business&nbsp;integrate software that drives&nbsp;meaningful decision-making from a risk perspective using data that is aligned to&nbsp;its&nbsp;objectives and KPIs?&nbsp;This question is often asked by organisations as they strive&nbsp;to adapt and be resilient during normal business operations and through disruptive events.&nbsp;<\/p>\n<p>Camms&nbsp;<a href=\"https:\/\/cammsgroup.com\/products\/\">business solutions<\/a>&nbsp;have&nbsp;the power to integrate meaningful&nbsp;<a href=\"https:\/\/cammsgroup.com\/products\/risk\/\">risk<\/a>,&nbsp;<a href=\"https:\/\/cammsgroup.com\/products\/strategy\/\">strategy<\/a>,&nbsp;<a href=\"https:\/\/cammsgroup.com\/products\/project\/\">project<\/a>, and&nbsp;<a href=\"https:\/\/cammsgroup.com\/products\/talent\/\">people<\/a>&nbsp;solutions,&nbsp;helping&nbsp;you make the right decisions, manage risks, align talent and focus on what matters.&nbsp;<\/p>\n<p>Find out more about how Camms support&nbsp;other Transport and Logistics organisations&nbsp;and&nbsp;<a href=\"https:\/\/cammsgroup.com\/demo\/\">request a demo<\/a>&nbsp;today.&nbsp;<\/p>\n<p><strong>Sources:<\/strong>&nbsp;<a href=\"https:\/\/www.ifc.org\/wps\/wcm\/connect\/2d6ec419-41df-46c9-8b7b-96384cd36ab3\/IFC-Covid19-Logistics-final_web.pdf?MOD=AJPERES&amp;CVID=naqOED5\">International Finance Corporation<\/a>&nbsp;<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>Transferring products from A to B quickly and efficiently is the name of the game in the constantly moving world of transportation and logistics. Unfortunately, a myriad of variables means this process is rarely as easy as ABC at the best of times \u2013 and 2020 is proving more algebra than alphabet. Navigating a clear &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/camms.bubblestaging.com\/en_au\/blog\/transport-and-logistics-organisational-resilience\/\"> <span class=\"screen-reader-text\">Transport and Logistics: The tipping point of 2020 for organisational resilience<\/span> Read More &raquo;<\/a><\/p>","protected":false},"author":3,"featured_media":13471,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","footnotes":""},"categories":[21,22],"tags":[],"class_list":["post-13470","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-resilience","category-risk"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.2 (Yoast SEO v21.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Transport and Logistics: The tipping point of 2020 for organisational resilience | Camms<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Transport and Logistics: The tipping point of 2020 for organisational resilience\" \/>\n<meta property=\"og:description\" content=\"Transferring products from A to B quickly and efficiently is the name of the game in the constantly moving world of transportation and logistics. 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