Covid-19 and uncertain economic environment has bewildered Human Resource Departments of entire logistics industry. Period of steep economic decline and uncertainty in market place has convinced Human Resource Departments of an organization for budget constraint. Economists are indicating this decline may last for years. On-boarded manpower, previously considered assets turned liability for many organization. Human Resource Department to maximum organization has stopped hiring employees due to budget constraints. Insufficient manpower undoubtedly leads to disruption in service level of departments in reaching out their customer.
Direct Impact on Retail Logistics
Logistics department efficiency in reaching out customer is up to their loading & lead time capabilities. Delays in delivery of goods/service might had worked in past due to monopoly and limited options customers had but in on-going era “Era of Technology” has provided customers with thousands of options to go on with. In today’s world, shoppers loyalty toward brand is changing, term “brand conscious” is getting replaced with “quality consciousness and lead time”.
Failure of Logistic Can Ruin Efforts of Marketing Department
Failure in timely supplies, especially in fast moving consumers good’s sector may have an obvious and worst impacts on efforts made by Marketing Department, in attaining dedicated shelf place in supermarkets. Supermarkets may reduce your shelf place and give your shelf share to other suppliers if you fail to supply timely. Re-attaining loosed shelf place again might be a challenge for marketers. Loosed shelf place mean, shoppers with cart may switch to other brand of same category.
Budget Constraint – Turn Fix Cost to Variable to Improve Performance
The supply chain sector faces a shortage in both skilled and unskilled labor, making it difficult for many shippers to maintain a reliable workforce. This shortage extends from the warehouse floor to the manager’s office.
While reliable labor is perhaps one of the greatest benefits offered by 3PLs in general, turning labor into a variable cost offers a substantial positive impact on the bottom line. The 3PL handles human resources, insurance, visa and other benefits, all while scaling labor up or down based on demand for each client.
3PLs offer cheap and cost efficient solutions to turn potentially crippling fixed costs into more manageable variable expenses. Evaluate your fixed cost today, you may find it alarming to your company budget. Reach out 3PL and ask how they can help you in reducing the strains of fixed costs on your budget. Increase in number of workers will have an obvious impact on logistics department’s performance.
Would you like to know how Road Star can help you in saving your budget by outsourcing, contact us at info@roadstartransport.ae or visit www.roadstartransport.ae
