This article originally appeared in Inbound Logistics.
Expect less crisis management and more focus on balancing how supply chain operations were conducted before the pandemic and incorporating lessons learned since then.
1) Companies may be hesitant to invest significant money in building their own logistics operations. They will be less likely to invest long-term capital in operating their warehouses. That means there will be an additional need for warehousing and logistics providers to fill in the gaps.
2) Flexible warehousing options abound. The Federal Reserve has signaled it will reduce interest rates
in the coming months, which should put the economy back on a growth trajectory; however, there will be fits and starts, and companies will be looking for flexible warehousing solutions that allow them to expand or contract as market conditions dictate.
3) More companies will share warehouse space. In the past several years, I have seen more collaboration between non-competing companies, who are starting to pool their resources to acquire warehouse space.
4) More automation and electrification are coming—but don’t forget the basics. More firms will strive
to automate internal processes, such as employing self-driving forklifts and automated pick-and-pack machines. Don’t forget, however, that automation will only take you so far. Make sure your employees are focused on providing the highest levels of customer service.
