The most important thing for supply chains is stability, which is a guarantee of their liquidity. Since the COVID-19 pandemic, the logistics industry has faced chaos and uncertainty. We have time to change consumer habits, be more careful in our behaviour, be more flexible in our business and save money, leading to the reorganisation of our supply chains.
COVID-19 has changed consumer behaviour
We’ve moved our shopping to the network. The sudden increase in the popularity of online shopping made the owners of online shops do everything to locate goods closer to the recipients and shorten delivery times. So the demand 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 allows to find and book empty warehouse space in the EU. This trend also applies to Asian online stores, which are increasingly willing to move their stores to Europe. After all, customers have become more demanding and no longer want to wait weeks for orders.
The coronavirus has also changed the perception of warehouse logistics, which is becoming one of the elements of competitive advantage. Some companies taught by the painful “covid-19 experience” are moving production from Asia to Europe to be closer to consumers. Suppliers or subcontractors from Europe often turn out to be worth their weight in gold, as they increase 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 – Rubik adds.
China quickly felt the painful effects of the pandemic. While Japan immediately announced that it was going to withdraw its production facilities from China, the relationship between China and the US has also changed, with their dependence on each other being loosened and reduced. There was a trend to withdraw production from China, which appeared even before the coronavirus, at a time when labour costs were rising. However, the pandemic definitely accelerated this process and made it global.
Central or regional?
Trade and distribution companies are analyzing which is more advantageous 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.
- 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.
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