Midsize logistics providers (warehousing and 3PL companies) are at risk for upcoming changes in the total supply chain in all areas locally, nationally, and globally.  SMEs will be challenged by changing user needs and impacting the entire supply chain from the manufacturer to the distributor and the end-user. Many changes are already being noticed in the business and trading landscape. Large companies are on constant adjustments for their operations efficiencies and their competitive advantage. The battle is fierce but silent among the big players. Doing business is changing rapidly and everyone wants to maintain if not gain the next position in the ranking system. Many consumer behaviors are driving changes on all fronts ranging from pricing, delivery expectations, shareholders value, workforce, labor compliance, digital conversion, to name a few. Midsize companies will have to keep up with these rapid changes and react appropriately while monitoring their bottom line and spending habits.

The pandemic has impacted how SMEs operate and all organizations need to revisit their strategy and evaluate their team performance differently. However, any organization’s biggest mistake is to sustain the old ways in hopes of minor adjustments to weather the storm of changes that will be impacting them regardless of the level of avoidance for change.

Companies struggling to survive pre-pandemic have disappeared and there will be more to follow. Others that were barely surviving operationally during the pandemic are on the verge of collapse. If you are wondering when “normal” is coming back and locking in your strategy in hopes of returning to the old days, then you might as well shut down today.  There are many areas to be considered in the new world of logistics and supply chain.  Every operation will have unique requirements to be addressed to re-adjust its operating models.

Midsize companies will need to reevaluate their operational performance and the impact of change in the future. The need to chart a new path and lead change in their sectors and markets regionally and nationally will be necessary to keep up with the wave of changes on the horizon. Although all industries and sectors are bombarded with the latest technologies (blockchain, AI, BI, data analytics), many are still operating on employee knowledge, outdated forecasting models, irrelevant metrics, and outdated KPIs, causing them to overlook enormous opportunities for organic growth, bottom-line efficiencies, and better customer service.

Here are some of the challenges SMEs need to strategize for:

  • Large companies are rapidly adapting to change, contrary to the old beliefs that large companies are slow to change.
  • Large companies are adopting nimble operating strategies.
  • New start-ups are entering the industry with ease and advanced technology.
  • Flexibility is becoming a necessity in the business world, workforce adjustment, remote work, remote task management etc.
  • Technology is advancing faster and e-commerce growth is projected to be at ~16% YOY until 2024.
  • Manufacturing trends and trade are changing rapidly and impacting the supply chain at an unprecedented level.
  • Government incentives and environmental changes are forcing change on all industries.
  • Labor and benefits cost increases.
  • Commodity price increase and overall inflation targets.

 What is next?

Companies need to seriously invest in their future and in the changes needed in the Company’s operation and operating models. Asurexe has deep experience and roots in the logistics and supply chain industry that spans more than 20 years of each Asurexe expert. These changes and strategies require heavy lifting in any midsize company, and we urge the leaders to reach out and open the dialogue with our team members. Our passion is helping organizations and operations teams succeed and operate at their highest potential.

 

Let’s have a conversation about how we can help your organization.