Virtually every institution in the world has felt the impact of the global COVID-19 pandemic. Despite devastating challenges, e-commerce is at an all-time high, with well over 100% of year-over-year growth in the U.S. and Canada alone. [Forbes]

It's been said that human beings should have "the serenity to accept the things they cannot change.." But how do we manage our expectations as we dive into the year 2022? How do we deal with the looming cloud of uncertainty in the global supply chain?

What is manageable, changeable, and flexible in these uncertain times? Be proactive. Remain optimistic, and trust the tech.

Let's briefly examine things to consider when approaching warehouse and supply chain logistics in this new era.

I. The Pandemic's Impact 

First, let's look at some of the changes of habit and broader impacts brought about by the pandemic.

Ecommerce

"Despite the reduction in service companies' GMV, total GMV for the top 13 B2C e-commerce companies rose by 20.5% in 2020, higher than in 2019 (17.9%). There were particularly large gains for Shopify (up 95.6%) and Walmart (72.4%). Overall, B2C GMV for the top 13 companies stood at $2.9 trillion in 2020." The data above reveals a drastic increase in e-commerce due to the impacts of the pandemic. On the one hand, businesses that depend on face-to-face contact are hit the hardest, while companies that rely on e-commerce are seeing tremendous growth. That growth, however large, isn't necessarily gained without concerns for the broader future of these interconnected industries.To illustrate this further, look at the negative economic impact of pandemic lockdowns in the U.S. According to research published by Economic Observatory:"

Almost all businesses have been badly affected by the spread of Covid-19…

Firms report that from April 2020 to March 2021, their sales were 21% lower, and their investment was 26% lower (on average) than they would otherwise have been.

On average, over the past year, 70% of firms reported that the level of uncertainty facing their business was high or very high.
Furthermore, research shows that the harsh impact of the pandemic has caused a resort to a capital perseveration position by several companies.

The seasonal expectations and the predictability associated with peak season have been disturbed, and businesses worldwide must adopt a more flexible and adaptive business strategy.

Supply Chain Brain calls 2020 "the most volatile and disruptive peak season in recent history." Industries today can't afford to not be flexible. The extended and volatile peak seasons have the potential to be a concerning "new normal." 

1. 1. Within the global supply chain, this era holds one of the most significant industrial transformations in recent memory. Several aspects of this new shift should be noted for its gradual influence on logistics for generations to come.

   2. Of course, it's no secret that many people do not want to work in a warehouse. Supply chain woes compounded by the pandemic paired with general disinterest from employees don't make matters any easier.

   3. Over 70 shipping ports in California claim a critical shortage of workers. Meanwhile, the U.S. Chamber says 90% of these leaders say labor shortages actively limit local areas' economic growth. [CNBC,2021] In October 2021, Forbes reported that the warehouse and transportation industry had a record 490,000 openings in July. (that gap was expected to widen into peak season.)

   4. There are several reasons for worldwide labor shortages, but the general disinterest in warehouse work compounded with the seasonal challenges many companies face only exacerbates the issue.

   5. Nevertheless, our solutions have proven to repeatedly strengthen a business's workforce, further protecting their bottom line.

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   9. II. Handling Supply Chain Uncertainty

      1. "Efficiency along the supply chain is important to maintain acceptable product prices, but the flexibility to deal with time-varying or dynamic demands could be even more important nowadays. With the high probability that customers will suddenly increase, reduce, cancel, or move forward or backward their orders, supply chain players need to be more flexible in many respects." -Managing uncertainty through supply chain flexibility: reactive vs. proactive approaches. Production & Manufacturing Research journal (2012)

       Productive & Manufacturing research categorizes three "supply-chain uncertainties" as one of the following:

      1. upstream (supply) uncertainty

      2.internal (process) uncertainty,

      3.downstream (demand) uncertainty.

      Today we'll be taking a look at #2: Internal Uncertainty. (Stay tuned to our blog to be informed when we cover the other two "supply chain uncertainties.”)

      Internal uncertainty is, among other things, related to labor issues and lack of working capital.

      "The more uncertain the internal processes, the higher the level of flexibility needed. For example, when the reliability of a manufacturing process is low, a capacity buffer is necessary to keep the system flexible." [PMR]

      Simply put; Industries must intelligently handle supply chain uncertainty and flexibility while boosting the reliability of their processes. We've seen firsthand the deployment of our smart-automation technology in the warehouse, allowing for flexible and seamless integration. This seamlessness makes way for efficient (virtually errorless) picking, sorting, and managing goods.

      Flexibility innovative tech like PopPick will be the key to thriving in the new year. Research reveals that after surveying senior supply-chain executives from across industries and varying geographies, the Mckinsey institute found that a whopping "93 percent of respondents" said they plan to make their supply chains far more "flexible agile, and resilient."

      Flexible solutions will be your primary defense against internal uncertainty; proper investment into the latest smart tech is vital in adapting to unforeseen circumstances.

      Unfortunately, traditional warehousing methods that lack the latest Ai are subject to a high amount of error and frustrating rigidity. This lack of mobility will also put an increased strain on the workforce, further damaging productivity.

      Building relationships and educating the industry will be essential for the success of the global supply chain. How we inform people about technology implementation so that it is effective for their operations will be tremendously important.

      We develop processes that allow people to make rational decisions while ensuring operators and clients are well prepared, harness the data, and deploy the technology to protect their workforce. 

      Because of Geek+ infrastructure, we are confident in the jobs created and improved through automation. Every day we're boosting the confidence our clients have in intelligent robotics.

      Geek+ solutions help reduce employee turnover due to our ergonomic and future-proof design. PopPick, for example, allows for quick fulfillment options and shows appreciation for our operators. However, we can never minimize the fact that individual people play a pivotal role in our automation infrastructure.Robotics level the playing the field for workers with disabilities. Far from eliminating these important jobs or disqualifying candidates, most experts believe that automation will create massive employment within the next few years. For example, the World Economic Forum predicts that automation will result in a net increase of 58 million jobs. In addition, ARK Investment Management expects automation will add five percent, or $1.2 trillion, to U.S. GDP in the next five years.

      As the world transitions to a stronger dependence on e-commerce, the importance of automation plays an essential role in warehouse, fulfillment, and supply chain logistics.

      Efficient and automated industrial processes pave the way for making work more accessible and enjoyable for warehouse operators. AMRs handle the most challenging part of the job. When intelligent Ai is involved, people with low strength or physical limitations are far more employable in the global supply chain market. This surge of employment brought about by the safety AMRs can save economies around the globe by getting work to the communities that need it most. 

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       Works Cited:

       Alicke, Knut, et al. “Resetting Supply Chains for the next Normal.” McKinsey & Company, McKinsey & Company, 20 Oct. 2020, https://www.mckinsey.com/business-functions/operations/our-insights/resetting-supply-chains-for-the-next-normal.

       Authors , et al. “Update: Which Firms and Industries Have Been Most Affected by Covid-19?” Economics Observatory, 10 Sept. 2021, https://www.economicsobservatory.com/update-which-firms-and-industries-have-been-most-affected-by-covid-19.

       Bhattarai, Abha. “Warehouse Jobs — Recently Thought of as Jobs of the Future — Are Suddenly Jobs Few Workers Want.” The Washington Post, WP Company, 12 Oct. 2021, https://www.washingtonpost.com/business/2021/10/11/warehouse-jobs-holidays-seasonal-hiring/.

       Columbus, Louis. “How Covid-19 Is Transforming e-Commerce.” Forbes, Forbes Magazine, 28 Apr. 2020, https://www.forbes.com/sites/louiscolumbus/2020/04/28/how-covid-19-is-transforming-e-commerce/?sh=5b49e1ed3544.

       “Global e-Commerce Jumps to $26.7 Trillion, Covid-19 Boosts Online Retail Sales.” UNCTAD, https://unctad.org/es/node/32811.

       SusanCaminiti. “Lack of Workers Is Further Fueling Supply Chain Woes.” CNBC, CNBC, 28 Sept. 2021, https://www.cnbc.com/2021/09/28/companies-need-more-workers-to-help-resolve-supply-chain-problems.html.

       Written by Amar Hanspal, CEO. “Here’s Why Robots Are Actually Going to Increase Human Employment.” World Economic Forum, https://www.weforum.org/agenda/2021/02/world-economic-forum-automation-create-jobs-employment-robots.

        

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