The Impact of Coronavirus on the Logistics Industry
The Impact of Coronavirus on the Logistics Industry
Changes for logistics & warehouses due to coronavirus
The coronavirus (COVID-19) pandemic has undoubtedly had an impact on all sectors globally. The logistics industry has proved critical at this time but has also been affected by the circumstances created by COVID-19, undergoing significant changes and facing several challenges.
There has been an enormous need for effective and immediate logistics services due to increased e-commerce activities resulting from the COVID-19 crisis. Since January 2020, existing customers have been purchasing online more frequently, while new customers – mostly people coming from older age groups or rural areas have made an online purchase for the first time. Evidence of the growth e-commerce is facing is the fact that the market capitalization has increased by more than 25% since the beginning of the coronavirus outbreak. Moreover, the Chinese e-commerce sector, which accounted for less than 20% of sales on the market, has also significantly risen.
In addition, supermarkets and grocery retailers specifically have been largely expanding their e-commerce capabilities using home delivery services to cope with the increased customer demand for food and grocery. In fact, between the January 31st and March 20th 2020, the food and grocery market grew by more than 4%. However, to fulfil this customer demand, putting further logistics in place has been a necessity.
Increased risk due to increased activity
This rapid increase of e-commerce has affected the landscape of logistics and warehousing in several ways. As the number of deliveries rises, so does the volume of loading dock operations. With logistics firms facing even higher than usual pressures to ensure on time deliveries of goods and services, the risk of accidents at loading docks (such as accidental drive-aways) also increases. Dock inactivity, the loss of assets, staff, time and loading dock capacity resulting from an accident are only a few of the numerous impacts that could affect a business.
During the colder seasons, truck drivers will be wanting to stay in waiting rooms, but with social distancing in place due to coronavirus restrictions, maintaining social distancing might not always be possible and result in some drivers staying in their vehicles. This decreases the risk of truck drivers contracting or spreading coronavirus, but in some situations might not be best practice and could increase risk of drive-aways. Some companies are even reducing the number of staff on site and using advanced technologies such as remote forklift truck driving, although that can come with additional risks to be considered.
Solution
The best way to ensure continued safe operation of the loading dock during this period of increased activity is to have a simple, reliable solution that ensures the safety of the warehouse staff and drivers with minimal operational disruption.
One such available safety solution is the Salvo Loading Dock Safety System. The system’s uniqueness lies in the fact that it interlocks the vehicle’s air brakes with the dock door. Loading/unloading of goods can take place safely, and the risk of accidental drive-aways is mitigated. Moreover, Salvo is very easy to use as personnel need to follow a few simple steps to operate the dock, making the solution easy for all to understand.
Drivers in the vehicle do not pose a risk with Salvo because the air brakes are locked out. Dispatch managers can ensure that accidental drive-aways are prevented and loading/unloading processes take place safely and with minimum disruptions.
The increased risks arising from covid-19 can be mitigated with the appropriate safety solutions in place, allowing for loading docks to operate safely with increased throughput.
Get in touch with our Salvo Director, Dan Skiba, at dskiba@kirkkey.com to learn more about the Salvo Loading Dock Safety Solution.