Supply chain. How to find yourself in a new reality?

Dmitrij Sadovskij 23.07.2020

It happened faster than anyone could imagine and no one was ready for it. Especially Supply Chain. Do not forget that one of the most important things for Supply Chain is stability and balance, which is a guarantee of their liquidity. And since the COVID-19 pandemic, the logistics industry has faced disarray and chaos. We have time to change consumer habits, be more accurate in our practice, be more plastic in our business, and save money, pointing to the rearrangement of our Supply Chains.

COVID-19 has reshaped consumer habits

We’ve moved our shopping to the network. The immediate rise in the popularity of online shopping made the owners of online shops do everything to find goods closer to the recipients and reduce delivery times. So the need for warehouses serving e-commerce has increased. Today, short delivery times are one of the main factors determining the success of business in the network – says Patrycja Rubik, CEO of wareh.com, a platform that enables us to discover and book empty warehouse places in the EU. This course also refers to Asian online stores, which are more amenable to move their stores to Europe. After all, buyers have become more troublesome and no longer want to wait weeks for orders.

Why in Europe?

The coronavirus has also shaped the perception of warehouse logistics, which is converting one of the elements of competitive advantage.  Some companies taught by the painful “COVID-19 experience” are driving production from Asia to Europe to be closer to buyers. Suppliers or subcontractors from Europe often turn out to be worth their power in gold, as they improve the guarantee of supply chain liquidity which is now the most important for the industry. And it doesn’t have to be unprofitable for companies – P. Rubik adds.

China immediately felt the painful consequences of the pandemic. While Japan immediately declared that it was going to withdraw its production facilities from China, the relationship between China and the US has also shifted, with their dependence on each other being released and overcome. There was a trend to withdraw production from China, which appeared even before the coronavirus, at a time when labor costs were rising. However, the pandemic definitely accelerated this process and made it global.

Central or local?

Trade and delivery companies are analyzing which is more beneficial for them: to carry out shipments from one central warehouse or from regional and local warehouses. And although there is no clear answer here, the conclusions based on market changes directly point to greater caution of companies in their activities and redefining supply chains.

In the case of warehouse logistics, caution can be seen in concluding lease agreements – customers no longer want to be bound by long-term contracts for years. They prefer the short ones, with the possibility of extension. This allows them to remain flexible in case of unexpected further changes, including another wave of coronavirus in the autumn. When looking for savings, they are also less willing to choose intermediaries.

At wareh.com we enable people from all over the world to manage their supply chains safely, carefully, and flexibly and optimize their business – says Patrycja Rubik.

Wareh.com is:

  • a free search and quick reservation of a warehouse in any EU country along with payment;
  • no intermediaries and the need to meet – without exchange lots of phones or e-mails;
  • no need for long-term contracts with a warehouse – we give you flexibility and the ability to make quick decisions, react to market changes;
  • you book the warehouse for how long you want and for how much you want because you choose the one that suits you best in a few minutes;
  • you can find a warehouse located close to your customers and reduce the delivery time of your goods;

We have also implemented a solution that will help enterprises weakened by the coronavirus. We have introduced an additional Corporate Account service that allows you to make immediate reservations but with deferred payment – Rubik adds.

You need to find and book a warehouse? Do it on WAREH.COM!

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