Article   18. 10. 2020 Coronavirus and logistics: do you really have to leave at all costs?

The hectic times of coronavirus have increased the effort of carriers to do their job at all costs.

At stake were the lives of people, if not people, then at least businesses, so the propensity for stubbornness is easy to understand. However, efficiency really gets a tailspin.

We don’t think companies are investing in delivery optimization for nothing. The reasons are usually similar and very compelling.

1. To manage their duties at all. Logistics operations, especially route planning, are too complex to be handled with only knowledge of geography and support for Google or List maps.
2. To keep their business economical. Logistics is not only complicated but also very expensive. Buying and leasing vehicles, drivers’ salaries, the daily filling of bottomless fuel tanks which empty particularly quickly with every unnecessary kilometer driven – the costs are usually huge. Only functioning organizations with perfect planning will stand.
3. To keep everything running smoothly. However, perfect planning is useless if the operation is not carefully managed and controlled. The dispatcher’s immediate ability to respond to field situations is key to efficient operation.
4. So that they are not subject to false assumptions. Not seeing a forest for trees and running a business as a state based only on subjective impressions is dangerously easy. But smart logistics software never loses its head and sees little obvious connection. It can look for reserves or directly prevent damage that is otherwise revealed with a considerable or irreparable delay.
5. To make informed decisions. Solvertech can simulate various situations of real operation. It eliminates trial and error from the register of good practice and speeds up finding the right decisions.
6. To survive in the market. Effective management increases the credibility of carriers with their customers and helps them maintain and expand market share.
7. So that they don’t get lost in the maze of paragraphs. Logistics is a game with extremely complex rules. The help of smart applications with their observance is an essential guarantee of a peaceful sleep of responsible employees.

Coronavirus time

All this was true in the pre-coronavirus period. However, once the crisis struck, there was suddenly no time left for careful management. What will happen when the crisis is over? Will we return to the pre-epidemic priorities?

This will be decided by the further development of the pandemic and the economy. The Czech government has so far invested more words than money to move towards the restart, but the situation is changing every day. In any case, the more incentives, the greater the indebtedness of public budgets and the greater the (future) effort to balance them as much as possible. That is, increased taxation of entrepreneurs. Higher taxes will reduce profits and increase pressure to reduce costs.

Will this also apply to transport companies? Certainly. Some companies will be helped by the increased popularity of online shopping, but many carriers are expected to decline or stagnate.

Therefore, efficiency will inevitably return to the pedestal of logistics priorities. Reducing costs will be the main, if not the only, way to maintain a sufficient profit for a while.

Solvertech has been pushing unnecessary transportation costs down since 2009 and will continue to do so, with or without Covid.

If our team’s knowledge helps you improve delivery efficiency through route optimization, we’ll be happy to provide you with any prompt advice and support we can. Please contact us at +420 739 671 003 or via the contact form.