As part of their Masters Degree, business students at the University of Wollongong need to undertake a research project. Coast to Coast Logistics’ extensive knowledge and experience in Customs Brokerage, International Logistics, Transport and Supply Chain Management gave students a complete picture of how the Covid-19 pandemic had impacted their business and that of their international and domestic clients.
Some exciting information on logistics and business, risk analysis, customer satisfaction and financial impacts was researched. This is a summary of the research done by the students.
Lockdown in 2020
Over 200 countries have been affected by Covid-19. Many cities worldwide, including Australia, have been put under strict lockdown and businesses have been closed and travel severely restricted.
Simply put, lean logistics is a way to identify and eliminate activities that are wasteful from the supply chain to increase product speed and flow. This is a popular logistics model, and one that we at C2C implement, however, during disasters such as the bushfires and the COVID 19, everything is grounded and difficult.
When everyone is panicking many companies are told that a lean supply chain is best and they are faced with limited resources to enable their requirements.
With the advent of Covid19 many factories and manufacturers worldwide shut down without warning. The access to supplies of goods, particularly from China, was affected immediately. Many Australian Businesses stopped production, and those trading online needed reliable transportation from companies that still stocked goods. The owner of C2C reveals that 100% of their customers’ businesses were negatively affected by the pandemic. 50% of business stopped overnight without warning.
Cash Flow for Business
Cash flow and budgeting were the biggest impacts to business. 30% of customers had a plan B to swiftly switch to a supplier that was not based in China. An additional 20% were quickly able to source other suppliers. Nearly half of our customers have direct or indirect business relationships with Chinese suppliers, and business transactions account for at least 50% of their revenue.
More people are working from home and while many people can provide documents for transportation and running their businesses some cannot.
Sometimes only business managers are permitted to telephone logistics companies too. Because freight is such a fast moving industry, the only people that can be contacted are the busy air freight managers who have mammoth amounts of phone calls every day. It can be really difficult for transport companies to find the right person from which to obtain a document.
Although the Coronavirus has brought about unusual and extraordinary circumstances, C2C have also seen many benefits and opportunities within the situation. These include:
- Utilisation of different methods of freight including air and land
- Ability to remain flexibility to transport opportunities
- Use risk mitigation and analysis including spreading out of suppliers
- Keeping up to date with information regarding the virus and transportation regulations
As regulations change C2C management ensure that they keep up to date. We are flexible and adaptable and use a strategic approach in these changing conditions. This allows us to keep your business moving in the best way possible.
C2C Logistics are here to support local businesses with International Trade. We are recognised experts in the logistics industry and ready to help – no matter what the unforeseen circumstances.
Contact us to discuss how you can navigate your business through the impact of Covid-19.